The fitness tracker market is growing rapidly, with new devices and features being released all the time. Consumers now have a wide variety of fitness trackers to choose from. While this is good progress, it starts to become harder for consumers to choose a fitness tracker that is just right for their needs.
So how do they choose? That’s where fitness tracker market segmentation comes in because it helps classify fitness trackers based on their characteristics as well as the consumer’s needs and wants.
In this article, we will segment the market for fitness trackers along the following 9 variables: type of fitness tracker, fitness goals, price, features, occasion, brand, the customer’s age, income levels, and frequency of use.
But first, let’s see why it is important to perform fitness tracker market segmentation in order to truly understand this market.
The Importance of Segmentation of the Fitness Tracker Market
The segmentation of the market for fitness trackers is essential because it allows fitness tracker manufacturers and retailers to target specific groups of consumers with laser precision.
By understanding the needs and wants of different segments, fitness manufacturers can create fitness products, like fitness trackers that are more likely to appeal to them and retailers can stock products that their customers are most likely to buy.
The market for fitness trackers ranges from those looking for a simple device to track their steps to those wanting an all-singing, all-dancing gadget that will monitor their fitness levels, diet, calorie goals, and sleep patterns and provide them with detailed data analysis.
By segmenting the market, businesses can identify which fitness trackers are most popular with each group and target their marketing and sales efforts accordingly.
Variables for Fitness Target Market Segmentation
Fitness market segmentation can be performed along the following 9 axes:
- Type of Fitness Tracker
- Fitness Goals
- Price
- Features
- Occasion
- Brand
- Customer’s Age
- Income Levels
- Frequency of Use
Most fitness tracker manufacturers cannot cater to all types of buyers, so they focus on those segments that are most likely to buy their products.
For example, a fitness tracker that is marketed as a budget-friendly option is not likely to be bought by someone who is looking for a high-end fitness tracker with all the bells and whistles.
It is also important to note that fitness trackers are often bought as gifts, so the occasion for purchase is also an important variable to consider.
For instance, a fitness tracker is often a gift given for Christmas because the recipient might have a New Year’s Resolution to get fit.
This is why many retailers who carry such products perform occasion segmentation to target different consumers on occasions when they are most likely to buy.
It is therefore essential that businesses decide which segments they want to target and then design their products, marketing, and sales strategy accordingly.
Let’s now look in detail at each of the 9 variables used in fitness tracker market segmentation.
#1. Segmentation Based on Type Fitness Tracker
Fitness Tracker Manufacturers usually segment their products based on these four categories.
- Wristband fitness trackers
- Clip-on fitness trackers
- Smartwatch fitness trackers
- Pendant fitness trackers
Wristband fitness trackers are the most popular type of fitness tracker.
They are usually made of rubber or plastic and have a strap that goes around the wrist.
Clip-on fitness trackers are less popular than wristband fitness trackers but they offer some advantages over them.
For example, they are more comfortable to wear for those who don’t like things around their wrists and they are also less likely to fall off.
Smartwatch fitness trackers are the most expensive type of fitness tracker and they offer all the features that one would expect from a smartwatch, such as the ability to make calls, send messages, and track fitness data – all of which can be monitored through a fitness app.
Pendant fitness trackers are not as popular as the other types of fitness trackers but they have one key advantage, which is that they can be worn as a piece of jewelry. This makes them more popular with women than men.
#2. Fitness Tracker Market Segmentation Based on Fitness Goals
A customer’s fitness goals are an important variable to consider when segmenting the fitness tracker market.
There are four main fitness goals that people use fitness trackers for:
- To lose weight
- To get fit
- To monitor a health condition
- For competitive sports
People who want to lose weight make up the largest segment of the fitness tracker market.
This is because fitness trackers are an effective tool for helping people to lose weight by tracking their steps, monitoring their diet, and setting fitness goals.
The second-largest segment is made up of people who want to get fit. This group includes people who have never exercised before as well as those who want to improve their fitness levels. They will often wear their fitness tracker when they work out in a gym.
The next sub-segment is made up of people who use fitness trackers to monitor a health condition. This could be something like diabetes or heart disease. Sometimes, people undergoing physical therapy will use a fitness tracker that to track their progress.
And finally, there are people who use fitness trackers for competitive sports. This group includes professional athletes as well as amateur sports enthusiasts.
#3. Fitness Tracker Market Segmentation Based on Price
Naturally, price plays a big role in fitness tracker market segmentation.
Fitness trackers can be broadly split into three price categories:
- Budget fitness trackers
- Mid-range fitness trackers
- High-end fitness trackers
Budget fitness trackers are the most popular type of fitness tracker. They usually cost between $50 and $100 and offer the basic features that most people are looking for, such as the ability to track steps, distance, and calories burned.
Mid-range fitness trackers are those that cost between $100 and $200 and include additional features, such as the ability to track heart rate and sleep patterns.
High-end fitness trackers are the most expensive type of fitness tracker and can cost several hundreds of dollars. They usually offer a full range of features including the ability to track steps, distance, calories burned, heart rate, and sleep patterns. They also often come with additional features, such as GPS and music storage.
Price segmentation is usually an excellent way to maximize profits by maximizing revenue from customers who are willing to pay more.
#4. Segmentation Based on Fitness Tracker Features
Many people will buy a fitness tracker based on its functionality and the features it offers. In fact, fitness tracker manufacturers get their customers to ditch an old model for a new one by touting the features of the new product.
Modern fitness trackers have a number of features to choose from. Here are some of the most popular:
- Steps counter
- Track distance covered
- Track calories burned
- Track heart rate
- Track blood pressure
- Track mood
- Track fatigue levels
- Track body temperature
- Track Blood Oxygen Levels
- Monitor sleep patterns
- GPS
- Music storage
- Panic button
… and (believe it or not) many more!
#5. Segmentation Based on Occasion
How and when a customer wants a fitness tracker plays a major role in their buying process. And so fitness tracker segmentation based on intended use and occasion of use is critical for manufacturers and retailers alike.
Occasion Segmentation of fitness trackers is largely linked to seasonality.
Seasonality refers to the times of the year when customers are more likely to buy fitness trackers. For example, people are more likely to buy fitness trackers in the lead-up to summer as they want to get in shape for swimsuit weather.
Similarly, around Christmas and the New Year, fitness trackers make great gifts and so there is a spike in sales. This fits well with New Year’s resolutions to lose weight and get in shape.
#6. Segmentation Based on Fitness Tracker Brand
When customers don’t know what parameters to use when making a purchase, they often revert to choosing a brand that they know and trust.
So, fitness tracker segmentation based on brand is also an important tool for fitness tracker manufacturers and retailers to see where the products stack up vis-a-vis competition and in terms of the customer’s impression of them.
There are a number of fitness tracker brands on the market, each with its own target audience. For example, Fitbit is targeted at fitness enthusiasts and those who are looking to lose weight. Garmin, on the other hand, is targeted at athletes and people who are looking for more detailed fitness data.
#7. Segmentation Based on the Customer’s Age
Customers of different ages will have different needs when it comes to fitness trackers. And so fitness tracker segmentation based on age is an important tool for fitness tracker manufacturers and retailers to understand the needs of their target market.
For example, younger customers are more likely to be looking for a fitness tracker that is stylish and has all the bells and whistles, such as music storage.
Older customers, on the other hand, could be more interested in fitness trackers that have features such as the ability to track blood pressure and sleep patterns.
Many older customers undergoing home health care, will have fitness trackers that not just track their daily activity but also report it automatically to their health care provider.
#8. Segmentation Based on Income Levels
Fitness trackers are not cheap and so fitness tracker segmentation based on income levels is an essential tool for fitness tracker manufacturers and retailers to understand which of their products to market to what type of customers.
It also helps them balance cost vs price. For example, by reducing the number of features in a model of a fitness tracker, manufacturers can make it more affordable for lower-income customers without compromising too much on quality.
Similarly, retailers in affluent neighborhoods can carry premium fitness trackers knowing that their customers will be able to afford them.
#9. Segmentation Based on Frequency of Use
Finally, not everyone wants a fitness tracker for constant use. Some people look for fitness trackers to use only occasionally, such as when going on a run or to the gym.
And so they may not be interested in paying for features that they will never use, such as music storage or GPS.
On the other hand, people who are looking for fitness trackers to use on a daily basis, such as to track their steps, will be more interested in features that make the fitness tracker more convenient to use, such as being able to track their sleep or having a fitness tracker that can be worn in the shower.
Conclusion
As you can see, the market for fitness trackers can be segmented using many variables and can be analyzed from different angles.
In this article, we performed fitness tracker market segmentation following these 9 factors: type of fitness tracker, fitness goals, price, features, occasion, brand, the customer’s age, income levels, and frequency of use.
Fitness tracker manufacturers and retailers often use market segmentation to better understand their customers and figure out how to appeal to them.
This way they can manufacture and stock fitness trackers that are likely to sell well and can target their audiences more effectively.
