Every customer is different in similar ways. Customer segmentation is the practice of dividing a customer base into groups or segments based on similarities such as age, gender, interests, and spending habits. This allows marketing teams to target specific smaller groups with relevant messages that would make customers more likely to buy something.
Customer segmentation relies on a variety of factors to create segments. This includes customers’ demographics, such as race, religion, income and education, as well as things like location, lifestyle and spending habits. So, a teenager shopping online for clothes won’t see the same ads as a homeowner looking for gardening tools.
Marketing automation software can gather the necessary data and define these customer segments as well as execute marketing campaigns. With customer segmentation models, companies can better understand customers preferences and needs and tailor marketing material to be more personalized.
Customer segmentation ultimately helps businesses maximize their profits and effectively allocate marketing resources. It can also improve customer service and foster customer loyalty. What’s your organization’s customer segmentation approach
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