Some of that can be gathered from purchasing information — job title, geography, products purchased, for example. Some of it might be gleaned from how the customer entered your system. An online marketer working from an opt-in email list might segment marketing messages according to the opt-in offer that attracted the customer, for example. Other information, however, including consumer demographics such as age and marital status, will need to be acquired in other ways.
Common characteristics in customer segments can guide how a company markets to individual segments and what products or services it promotes to them.
A small business selling hand-made guitars, for example, might decide to promote lower-priced products to younger guitarists and higher-priced premium guitars to older musicians based on segment knowledge that tells them that younger musicians have less disposable income than their older counterparts. Customer segmentation can be practiced by all businesses regardless of size or industry and whether they sell online or in person. It begins with gathering and analyzing data and ends with acting on the information gathered in a way that is appropriate and effective.
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Email address. Benefits of segmentation Customer management Approaches to segmentation Niche markets. Share on:. Need help? Our qualified agents can help you. Contact us! Our Services Telephone: Create my account. Contact About Us Create my account Follow us:. By continuing to use this website, you agree to our Privacy Policy and the use of cookies to offer you content and services tailored to your interests. Learn more about our Privacy Policy. General and educational software, basic games, DVD player, "safe" access to the Internet, email accounts for each member of the family.
Business software, fax, broadband access to the Internet, high quality printing, document scanning and reproduction. At Yieldify, we utilize behavioral segmentation to deliver highly relevant and targeted campaigns based on a number of behavioral patterns:. Based on this behavioral data, we can tailor our messaging accordingly:.
First time visitor: Hey, learn about our latest collection! Returning visitor: Join our loyalty program and start saving! Working with online wine club Vinomofo , we used behavioral segmentation to target three distinct audiences: new visitors, returning visitors, and returning clients. Returning visitors who had already subscribed but have not redeemed their coupon yet were reminded on their first order incentive.
This targeted approach focused on purchasing habits reached a Though the most common types of market segmentation are demographic, psychographic, geographic, and behavioral, there are other types that are also worth considering and can offer excellent opportunities in the right context. Technographic segmentation identifies and groups customers with regards to the role technology plays in their lives. This might mean recognizing groups of early adopters when marketing new technologies.
It might also be as simple as recognizing the device users access the site from and presenting deals differently. Consumers accessing an online phone store via the Safari internet browser might be more interested in Apple products — and can be shown these as a result. Generational and life stage segmentation both expand on aspects of the demographic approach.
Identifying customers by generation allows for broad but distinct approaches depending on age. Life stage segmentation, however, works similarly whilst divorcing life experience from age itself. Instead, it groups customers by factors including marital status, home-ownership, and whether or not they have children and more specific still by considering the ages of their children.
Bank of America, for example, has successfully used life stage segmentation in their digital marketing strategy. From there, the customer would land on a custom microsite designed specifically for their segment. Transactional segmentation is based on previous interactions your customer has had with your brand. Offering free shipping to all their customers would have been too expensive, so Yieldify targeted a specific transactional segment of their userbase — offering free shipping to those with a set value of items already in their carts.
Picking up on information like this is a particularly effective strategy across multiple industries, including top competitors to mass global retailers like Amazon , presenting e-commerce businesses with the best understanding of their customers, and encouraging return visits.
Whilst the above marketing segmentation strategies mainly focus on B2C organizations, Firmographic segmentation can be extremely useful to those in the B2B world. This segmentation strategy allows B2B companies to better understand and target their audience and marketing campaigns. Or, you might consider building a mobile app to capitalize on users who are interacting with your brand while on the go.
Browser type refers to the internet browser that a customer is using. For example, are they using Google Chrome or Mozilla Firefox? Point is, there are dozens of internet browsers available and each can display your website, emails, and apps differently.
This makes it important to understand what your customers are using so you can build your marketing content for those browsers. Original source solves this problem by telling you where your website visitors are coming from. Once you know how your customers are finding you, you can optimize this conversion path and make it easier for more people to locate your site.
Higher scores mean that customers are happy with your service, while lower scores indicate a risk of churn. The number of purchases that a customer makes is a primary factor in determining customer value. The more purchases they make, the more valuable they are to your business. The same can be said for average purchase value.
The higher this value is, the more overall value the customer provides to your business. Some groups of customers require specific features from your products in order to use them. Service needs are the services that customers require when interacting with your business. Or, you might have experience with HubSpot in the past and decide to opt out of this service.
Identifying these needs will ensure your customers are properly supported. This segmentation option allows you to categorize individuals who have specific needs in regards to how they wish to receive your product or service.
Customer segmentation helps you boost conversions, reach your audience through cross-team marketing, sales, service, product, etc. So, begin working on your customer segmentation strategy and use our recommended tools for support along the way. Editor's note: This post was originally published in February and has been updated for comprehensiveness.
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Thank You! You have been subscribed. Start free or get a demo. The Ultimate Guide to Customer Segmentation: How to Organize Your Customers to Grow Better Written by Kristen Baker Learn about the importance of customer segmentation and how the process can help you boost conversions and effectively reach your audience members.
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