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Customer Segmentation

Why is Customer Segmentation the First Step to Growth and Success for Businesses? Customer Intelligence Experts Discuss

Introduction to Customer Segmentation

With the rising population, growing economies, rapid urbanization, and digitization, companies’ approach to sales, marketing, and product development have transformed to a great extent. Businesses have shifted their strategies to be more consumer-centric and driven toward ensuring customer satisfaction and loyalty. As competition increases, so does the need to attract and retain customers while maintaining mutually beneficial and healthy consumer relationships. These evolving business needs have led to the need for customer segmentation processes across industries.

Customer segmentation is categorizing consumers as per various parameters that may be geographic, demographic, or behavioral. These categories also vary based on the business models of businesses. For instance, B2B business models prefer to categorize their clients on factors such as industry, location, and workforce size. Whereas, in B2C companies, customers are classified according to factors including age, gender, spending behaviors, and value to the brand.

This process has proven highly effective and useful for various departments and functions within companies. It enables targeted marketing initiatives, helps develop well-received products, and improve the value of various customer-centric investments. Leveraging customer segmentation solutions help companies enhance sales, increase customer attraction and retention rates, and maintain healthy consumer relationships. In this article, Infiniti’s customer intelligence experts discuss the significant benefits of customer segmentation in various departments of businesses.

Struggling to engage, attract, and retain customers? Request a free proposal to learn how Infiniti’s customer segmentation solutions can help your business identify and target the ideal customer base for your offerings.

The Benefits of Customer Segmentation

Customer Segmentation

Improved Marketing Initiatives

Segmentation of customers helps marketing teams identify their target consumers and invest in developing efficient, targeted marketing initiatives. In a highly competitive market, ensuring that your business identifies and addresses consumers’ needs better than competitors can be a significant differentiator. Additionally, consumers are more likely to engage with content relevant to their personal needs, demands, and preferences. By identifying consumers’ needs, Infiniti’s customer segmentation solutions help businesses develop improved and targeted marketing initiatives and increase conversion rates with quality leads.

A business requires a strong and loyal customer base to scale and succeed. To learn how Infiniti’s customer segmentation solutions can help your business attain loyal customers, request more information.

Data-Driven Product Development

Developing a novel product that addresses target consumers’ needs can be highly challenging in a rapidly evolving market. Therefore, segmentation of customers and a comprehensive understanding of consumers’ unmet needs, gaps in the market, and particular demographic preferences help businesses develop unique products that address consumers’ demands. A data-driven product development process combined with targeted marketing translates into a successful product launch, improved customer relations, and higher consumer satisfaction. Infiniti’s customer segmentation solutions help businesses developed personalized products and services and reduce ineffective investments.

Increase in ROI

Lastly, customer segmentation enables quality over quantity. Personalized offerings and targeted marketing initiatives lead to acquiring and retaining high-quality leads, increased customer loyalty, and stable growth. While the process requires streamlining the target audience and losing a wider customer base, it enables improved approaches with a higher chance of converting into fruitful transactions or contracts. Targeted marketing initiatives with higher returns lead to a significant ROI and helps businesses maintain a well-informed marketing budget. Additionally, companies avoid investing in the research, development, and launch of products that fail to meet revenue expectations or improve customer attraction and retention. Infiniti’s customer segmentation solutions have helped businesses across industries determine an improved marketing budget, conduct an efficient product development process, and realize significant savings.

Speak with our experts to leverage our expertise in enabling targeted marketing initiatives, data-driven product development, and improved ROI with customer segmentation solutions.

Customer Segmentation + Online Healthcare Service Provider

Analyzing Consumer Needs and Improving ROI for an Online Healthcare Market Client with Customer Segmentation Solution

Online Healthcare Market Overview

The healthcare industry adapted to the rise of digitization rather quickly and efficiently. Over recent years, the rising adoption of mobile devices, the introduction of the Internet of Things (IoT), and the promotion of online services have given rise to the vast field of digital healthcare. Online healthcare services range from providing relevant medical information, online consultations, health education services, and more. As digitization continued to spread, online healthcare market players aim to improve their offerings, differentiate their strategies from competitors, and address their consumers’ unmet needs. Therefore, many industry leaders leverage customer segmentation solutions to gain an in-depth understanding of their consumers.

Infiniti’s customer segmentation solutions have helped many companies categorize consumers, evaluate their needs, identify profitable customer segments, and adapt their strategies and offerings to accommodate for their consumers’ demands. Customer segmentation also enables improved marketing strategies, personalized offerings, better product development, and higher patient engagement rates. In the growing online healthcare services market, it is becoming increasingly crucial for companies to attain and understand their consumers’ opinions and feedback proactively. To scale successfully, market players must prioritize their consumers’ needs, demands, and preferences.

Advancement and progress are imperative in the healthcare industry, and the online healthcare market is an example of the same. To keep growing with the market and ensure high customer satisfaction levels, request a free proposal.

Scope of the Customer Segmentation Engagement

Over six weeks, the online healthcare service provider gained in-depth insights into the evolving digital healthcare sector and understood their consumers’ needs and preferences. Infiniti’s customer segmentation engagement also helped the service provider categorize their customers and develop improved marketing initiatives, pricing strategies, and offerings as per consumer needs. The offering included a market segmentation analysis, a competitive benchmarking analysis, developing targeted marketing initiatives, and customer satisfaction assessment.

Business Challenges

The client, a leading online healthcare service provider, struggled to keep pace with the rising competition and witnessed a steady decline in customer attraction and retention rates. The service provider was losing market share due to their traditional marketing approach, while competitors employed targeted marketing initiatives. To address the high customer attrition rate, the client sought to gain a comprehensive understanding of their consumers’ needs and preferences and analyze their competitors’ marketing strategies. Therefore, the online healthcare market client sought to partner with Infiniti Research and leveraged our customer segmentation analysis expertise. By categorizing their consumers based on factors such as spending behaviors, age, gender, and value for the brand, the client wanted to increase their customer retention rate and gain a strategic edge in the online healthcare market.

Continual customer attraction and retention is crucial to the growth and success of any business. Request more information to learn how Infiniti’s customer segmentation solutions can help your company grow and succeed in the healthcare industry.

Our Integrated Customer Segmentation Approach

Infiniti’s customer segmentation experts developed a comprehensive approach consisting of three phases to help the online healthcare services provider address their challenges. For the first phase, our experts conducted a customer satisfaction and need assessment to evaluate the efficacy of the client’s offerings and assess consumer feedback regarding the client’s services and platforms.

In the second phase, Infiniti’s customer segmentation experts categorized target market segments according to their age, gender, spending behaviors, and value for the brand. Providing the client with crucial insights into the personalized needs of the different customer segments and enabling improved marketing initiatives and product development.

Our experts then conducted a detailed competitive benchmarking analysis to identify and evaluate key competitors’ and industry leaders’ strategies in the engagement’s final phase. The study also provided the client with comprehensive insights into successful marketing approaches and efficient customer attraction strategies.

Business Outcome

Customer Segmentation + Online Healthcare Service Provider

Leveraging Infiniti’s customer segmentation analysis provided the client with unparalleled insights into their consumers’ needs and preferences, helped them identify and adopt better marketing strategies, and enabled data-driven product development. Customer segmentation conducted by the analysts’ team helped the client understand and meet their consumers’ varying demands and unmet needs. With our experts’ recommendations, the client developed an extensive targeted marketing initiative that helped attract customers. Additionally, with the customer satisfaction assessment information, the client made crucial and relevant changes to their platform and offerings to meet customer expectations, which helped increase their customer retention rate substantially.

The competitive benchmarking analysis provided the client with insight into successful marketing strategies employed by industry leaders and helped them develop an unparalleled marketing approach. The online healthcare service provider also focused on personalized product development, based on the data acquired from the customer need assessment. With the customer segmentation solution, the client increased their customer attraction and retention rates, improved their ROI from marketing, exceeded their revenue expectations, and regained a substantial market share in the online healthcare market.

Identifying, analyzing, and understanding consumers’ needs is the first step to the top in the online healthcare market. Speak with our experts and gain comprehensive insights into the value of customer segmentation analysis in your market.

Mobile Development Services + Customer Segmentation

Offering Mobile Application Development Services and Efficiently Overcoming Challenges

Recently, the world has watched the US IT & Telecom industry proliferate. The most prominent growth has been in demand for mobile application development services. As mobile phones, handheld devices, and convenience take over the preferences of consumers, the mobile application development market continually faces new challenges. Understanding customers’ changing needs and preferences has become a crucial component of developing, launching, and succeeding in any way.

For companies that offer mobile application development services, it has become crucial to identify, analyze, and segment target customers. The benefits of customer segmentation analysis are limitless; most importantly, they help to understand continually changing preferences and consumer issues. Additionally, it helps overcome critical market challenges as well.

As consumers’ lives become more hectic, demanding, and technology-driven, smartphones have become a necessity. Digital transactions, eCommerce shopping, streaming entertainment, and online medical consultations are some of the many functions that smartphones hold within them. Mobile application development services help companies develop these apps and provide consumers with the various functionalities they request or need.

However, with changing times, there are different challenges faced by all mobile application development market players. Infiniti’s research experts identified and analyzed consumers’ needs, preferences, and challenges, as well as the challenges faced by companies that offer mobile application development services. In this article, they provide in-depth insights while also discussing the best possible solution in the future, i.e., customer segmentation analysis.

To be an industry leader in the highly competitive mobile application development services market, request a free proposal.

Understanding End-User Preferences and Complaints

Before discussing the challenges of the industry, and the changes that mobile application development market players need to incorporate in their operations, it is crucial to understand the consumers. Infiniti’s industry experts have studied and discussed some of the critical needs and complaints of consumers:

  • Intuitive User-Interface: As all functions become fast-paced and transactions become easy and quick, consumers prefer to have similar experiences when interacting with a mobile app. When developing an app, mobile app development services providers need to plan for a user interface and user experience that is intuitive, easy to access, and functional. While aesthetics are important, practicality is a more significant focus. When it comes to in-app purchases or eCommerce shopping, a complicated transaction process can lead to customer attrition.
  • Personalization: Consumers highly prefer mobile applications that offer personalized experiences and targeted content. For instance, the high personalization of music playlists on music streaming applications helps consumers find more artists they enjoy. In various apps, information such as location, search histories within the app, and mutual connections help establish a personalized experience and provide further convenience for customers. This also helps provide personalized offers, and therefore, increases chances of conversion. To gain exclusive insights into the mobile application development market dynamics and end-user perspective from industry experts, gain limited period free access to our resource here.
  • Battery and Storage issues: While customers prefer mobile applications that serve various functionalities, and create an ideal experience, a common complaint is battery drainage. Losing battery life can be a personal or professional crisis for customers. Additionally, customers often complain about storage and memory issues due to file size. Due to these complaints, mobile application development service providers are tasked with creating highly functional and small mobile applications that do not drive down battery life. However, this is easier said than done.

Mobile Application Development Services Market: The Challenges

There are many challenges currently plaguing companies that offer mobile application development services. The process of mobile application development is long-drawn, highly complex, and some challenges the market faces due to this are discussed below:

Rising Competition

With the rising demand for smartphones, tablets, and other handheld devices, the need for various mobile applications has grown substantially. This change has led to constant innovation and development in the market. There has recently been an upsurge in the number of companies and individuals offering mobile application development services. The increasing new market entries, rising demand, and constant innovation have made the mobile application development services market highly competitive and challenging. However, developing a mobile application requires more than simple coding abilities. Some of the top mobile application development service providers have turned their focus on identifying and understanding their target customers. Further, leveraging customer segmentation analysis, allows companies to improve their marketing, and reach a broader, more appropriate audience for their application.

Identifying Target Markets

Identifying target markets is highly crucial in the mobile app development process. Not solely for marketing, but more importantly, to understand the need for the mobile application being developed. For instance, once a mobile application developer identifies the target market, the next step would be establishing if the market is substantial enough to provide revenue. Additionally, different target markets require the functionality of varying kinds. An eCommerce application for homemakers would require different functionality, as compared to travel apps for young adults and college students. Developing an app that considers, and efficiently incorporates these needs helps increase downloads, active users, and the chances of conversion to premium or other paid services if applicable. Customer segmentation allows companies to accurately identify and categorize target customer groups, with an understanding of customers’ preferences, complaints, and requirements.

Variety of Devices

Another challenge created by the increasing demand for handheld devices is the variety that has been developed over the years. Varying screen sizes, operating systems, service carriers, and configurations have made mobile application development an even more complicated task. Screen sizes for phones range tremendously, in pixels and inches. Screen resolutions differ between brands, companies, and phone models. Creating a mobile application that is conducive to all resolutions and sizes is a challenging prospect.

Additionally, though Apple monopolizes the iOS market, android phones are produced by many companies, and Windows is the third operating system. Mobile application development service providers must offer mobile applications that are applicable and viable for smartphones and handheld devices across operating systems and companies. These two factors are among the most challenging issues in the process of developing an app.

Safety and Security

In a world where personal data needs to be protected at high costs, and customers’ smartphones hold high levels of personal data, mobile application development service providers need to create secure and safe applications. Guaranteeing the safety and security of personal data is one of the most attractive factors for specific applications. For instance, banking apps, password storing apps, and even regular eCommerce sites, often hold crucial passwords and information that can cause substantial damage if leaked. While iOS has a specific set of security guidelines, android and windows do not, and failing to provide security can cause misuse and manipulation, customer attrition, and significant monetary losses.

Mobile Development Services + Customer Segmentation

Understand how Infiniti Research helps companies strategically overcome these challenges by speaking to our experts.

Customer Segmentation Analysis: Why is it the best way forward?  

Customer segmentation analysis allows companies to identify, categorize, and analyze the most profitable and effective customer segments in the market. For mobile application development service providers, this directly translates into developing and launching highly efficient and popular mobile applications. Customer segmentation further allows mobile application development market players to overcome the market challenges by providing critical insights into their target customer segments, and customers’ needs and preferences. This further gives companies a competitive edge, and helps them gain a larger market share, and substantially enhance sales.

To further learn the importance and benefits of customer segmentation analysis in the mobile application development services market, request more information.

market segmentation

A Consumer Electronics Company Personalized Marketing Advertisements for Different Target Audiences by Leveraging Market Segmentation Analysis

Market Segmentation Analysis

The global consumer electronics industry is undergoing a rapid phase of change as leading brands are increasingly focussing on developing personalized product and service offerings for their customers. Also, with the proliferating marketing platforms today, making marketing and promotion more organized and targeted is becoming pre-requisite for businesses. This is where the real power of leveraging market segmentation analysis comes into play. Market segmentation analysis helps businesses to enhance customer retention, establish brand identity, better customer relationship, and increase sales conversion.

Market segmentation analysis can help you to efficiently group customers with similar characteristics together and create better value for them. Request a FREE proposal today!

Business Challenge

The client is a consumer electronics company based out of North America.

The client, a consumer electronics company, was looking to devise a sound marketing strategy to market their new digital cameras. They wanted to efficiently utilize their marketing budget to focus the most lucrative customer segments. To do so, they wanted to understand their customers’ needs and demands and categorize customers with similar requirements together. By doing so, they wanted to personalize marketing advertisements for different target audiences. They approached the experts at Infiniti Research to leverage their expertise in offering market segmentation analysis.

Other key objectives that the client wanted to achieve by leveraging Infiniti’s market segmentation analysis were:

  • Focus the most profitable customer segments and enhance customer retention
  • Better reach out to the target audiences and enhance competitiveness
  • Devise personalized product/service offerings for their customers and better customer relationship
  • Identify the right marketing channels to reach out to the target customers’

Contact us to know how our solutions can help you build an ideal market segmentation strategy.

Our Approach

To help the client tackle the above-mentioned challenges, the experts at Infiniti Research conducted a four-phased approach that involved:

Customer needs assessment to analyze the evolving needs and demands of target customers

Customer satisfaction survey to understand the satisfaction level of customers regarding the client’s product and service offerings

Sales assessment to evaluate the market potential for the new product in the next five years

Customer segmentation analysis to group customers with similar characteristics and needs together

Results Obtained

By segmenting customers into different sub-categories, the client was able to gain detailed insights into their customer segments. This helped them to devise personalized offerings for them. By leveraging Infiniti’s market segmentation analysis, the client was also able to create targeted advertising and marketing campaigns for different subsets of customers.

In addition, with Infiniti’s market segmentation analysis, the client was able to:

  • Increase competitiveness
  • Enhance customer retention and reduce churn rate
  • Enhance sales and revenue
  • Efficiently utilize marketing budget

Our market segmentation analysis will help you assess changes in customer behavior and measure the effectiveness of a marketing campaign. Request for more info here!

Market segmentation

Streamlining Marketing Initiatives and Increasing Sales by 33% for a CPG Company | Market Segmentation Approach

Market Segmentation Analysis for a CPG Company

The consumer packaged goods (CPG) market landscape has changed dramatically over the past few years, and so have the expectations of customers. Today, modern customers value businesses that identify their individual needs and meet their expectations. As such, CPG companies will need to restructure their business models and adopt a more personalized strategy. This is where companies realize the real power of leveraging market segmentation analysis.

Our target market segmentation analysis can help you to introduce products that truly matches the demands of your target customers. Request a FREE proposal today!

Business Challenge

The client is a CPG company based out of the United States.

Our client, a retail firm, faced difficulties in differentiating its brand from its competitors. Also, the client’s inability to reach out to the right customers through targeted marketing initiatives resulted in huge losses for the company. As a result, the client had limitations with their budget for marketing and advertising. The client, therefore, realized the need to segment their target customers and personalize offerings for them. To do so, they approached the experts at Infiniti Research to leverage their expertise in offering market segmentation analysis.

With Infiniti’s market segmentation analysis, the client also wanted to:

CapturePersonalize product and service offerings – With Infiniti’s market segmentation analysis, the client wanted to categorize their customer segments into various groups based on their spending patterns, buying behavior, interests, and value for the brand. By doing so, the client wanted to make marketing, product development, and customer service more effective by devising personalized approaches for different groups.

Enhance marketing campaign – By leveraging Infiniti’s market segmentation analysis, the client wanted to analyze their customers’ needs and requirements to personalize marketing initiatives for them. Also, they wanted to determine ways to acquire new customers, build brand loyalty, and build awareness around specific products.

Increase customer engagement – By leveraging Infiniti’s market segmentation analysis solution, the client wanted to constantly track customers’ activities within various groups. By doing so, they wanted to restructure their business models to meet their customers’ rising needs.

Our market segmentation analysis can not only help you to increase your competitiveness but also allows you to accurately set product prices for your different customer segments.

Our Approach

The experts at Infiniti Research conducted a three-phased approach that involved:

A customer needs assessment to analyze the evolving needs and demands of customers. This phase of the market segmentation process also involved categorizing customers with similar needs and demands together.

A customer satisfaction analysis to identify how well the client’s products and services satisfied the changing needs and demands of customers. This phase of the market segmentation engagement also involved identifying reasons for customer churn.

A marketing strategy engagement to devise a solid marketing plan for product promotion.

Results Obtained

Infiniti’s market segmentation analysis helped the client to segment customers into various groups based on their spending patterns, buying behavior, interests, and value for the brand. This helped the client to make marketing, product development, and customer service more effective by personalizing initiatives for different groups. Also, customer segmentation analysis helped the client to constantly track customers’ activities within various groups and restructure their business strategies to meet their rising needs and demands.

Also, by conducting a customer satisfaction survey, they were able to identify dissatisfied customers and provide them with products or services they’re looking for. Market segmentation analysis also helped the client to identify the best prices to target new customers and set profitable prices for their products and services. The client was also able to streamline their marketing initiatives and achieve huge savings on their marketing budget. The CPG company increased sales by 33% within one year of leveraging our market segmentation analysis.Capture

Want to gain more insights into our market segmentation services portfolio and their benefits for your business? Request a FREE brochure here!

benefits of market segmentation

Infiniti’s Retail Customer Segmentation Strategy Elevates Sales by 17% for a German Retailer

Retail customer segmentation

Today, with a multitude of choices available for customers, personalization of shopping experience has become vital for retailers to increase sales and customer retention. Also, retail companies are under the pressure to efficiently segment their customers base and devise targeted marketing campaigns to attract lucrative customer groups. This is where companies realize the real power of leveraging retail customer segmentation analysis. Consequently, retail companies are partnering with firms like Infiniti Research to leverage their expertise in offering retail customer segmentation analysis.

Are you looking to tailor your marketing strategies for your high-value customers? If yes, our customer segmentation analysis can help. Request a FREE proposal today!

Business Challenge

The client is a retail company based out of Germany. The client’s unstructured approach to product marketing turned out to be costly for the company. Also, the company started losing their valuable customers to their competitors. This impacted the company’s sales rate and subsequently affected the overall sales rate. The client, therefore, realized the need to improve personalization with advanced retail customer segmentation strategy. To do so, the client approached the experts at Infiniti Research.

Furthermore, by leveraging Infiniti’s expertise in offering retail customer segmentation analysis solution, the client also wanted to tackle challenges such as:

Segmenting based on touchpoint engagement

With Infiniti’s retail customer segmentation strategy, the client wanted to categorize customers based on how they interact with the business post-purchase. By doing so, they wanted to devise marketing campaigns based on their customers’ behaviors and demands.

Segmenting based on purchasing patterns

With Infiniti’s retail customer segmentation analysis, the client wanted to analyze their past sales data to identify most frequent customers, identify highest value customers, and understand their needs and demands. By doing so, they wanted to devise value maximization strategies to enhance their market share and customer retention.

Rising need for customization in marketing

Today, with customers having more choices than ever before, major retailers have already started segmenting customers based their shopping patterns and spending behavior. Therefore, by leveraging Infiniti’s retail customer segmentation analysis, the client wanted to efficiently segment their customers to customize offerings based on their needs and demands.

Reach out to our experts to learn more about how our retail customer segmentation strategy can help you efficiently segment your customer base and devise targeted marketing initiatives.

Solutions Offered

To help the client tackle the above-mentioned challenges, the experts at Infiniti Research conducted retail customer segmentation and need analysis. By combining the best data gathering approaches, our experts helped the client to segment their target customers into various groups based on factors such as shopping patterns, spending behavior, and their demands.

Also, as a part of the retail customer engagement, the experts conducted sales assessment for the past five years. The experts also analyzed the sales data of the client’s key competitors. The analysis of the past sales data helped the client to identify their frequent customers and also products with the highest demand.

Furthermore, by leveraging Infiniti’s expertise in offering customer satisfaction and loyalty assessment, our experts helped the client to understand the satisfaction level of customers. Also, by conducting trial marketing campaigns, the experts helped the client to identify the right channel to promote their product offerings.

Results Obtained

This helped the client to efficiently devise targeted marketing and promotional campaigns for specific segments. This subsequently helped the company to effectively engage customers and enhance customer retention. Also, the client was able to efficiently utilize their marketing budget and elevate sales by 17% within a year.

Retail customer segmentation

Request for more information to know how our retail customer segmentation analysis can help you gather detailed insights into your target market and measure the effectiveness of your marketing campaign.

product marketing strategy

The Perks of Using Customer Segmentation Analysis in Retail

The retail industry is undergoing a rapid phase of change as brands are increasingly focusing on developing highly personalized customer experiences. Furthermore, the rising market competition has resulted in increasing customer expectations. Customers expect brands to understand their individual needs and provide an exceptional customer experience. To achieve this, retail companies must move on from the one-size-fits-all approach to a more personalized approach in order to cater to different customer needs. This is where the role of customer segmentation analysis comes into play. Customer segmentation analysis in the retail industry involves arranging a broad customer base into smaller subgroups. These subgroups represent a common customer need or goal. Retailers can then formulate strategies to satisfy the needs of each of these customer segments.

It is increasingly important for marketers to send relevant messages that are tailored to the appropriate stage of the purchase funnel. Infiniti’s customer intelligence solutions combine the best data gathering approaches to identify the most profitable customer segments, measure the effectiveness of a marketing campaign, assess changes in customer expectations, and devise value maximization strategies to enhance their shares. Request a free proposal to know more about our customer intelligence solutions.

Benefits of customer segmentation analysis in retail

Customer segmentation analysisRetail marketers are constantly on the lookout for ways to attract more customers by improving the effectiveness of their campaigns. Customer segmentation analysis can help them better plan their marketing strategy. Additionally, having a customer segmentation model also helps retailers understand what offers or product customizations will work with each group of customers.

Individualize customers

Marketing, customer services, and even product development can be made more effective with the help of customer segmentation analysis by giving retailers comprehensive insights about their specific customer groups. Not every shopper has the same expectations from a brand. Without a customer segmentation model that reflect the needs of customers more accurately, retailers often struggle to meet customer expectations.

While most retailers know they need a sophisticated approach to customer segmentation analysis, many still struggle to understand their customer with a 360-degree view. Get in touch with us to know how we help our clients identify target customers, realize factors that drive customers to competitors, gain a clear understanding of budgets and timelines, compare product or service pricing, and also understand customers’ decision-making process.

Collecting smarter data

Customer segmentation analysis not only helps retailers gain a better understanding of their customers, but it also helps them evaluate their own performance. Different metrics relating to marketing campaigns, sales, and other incentive programs can be broken down into different segments based on the customers’ transactional data. Additionally, most cloud-based POS solutions record and update customer data automatically whenever they make a purchase. This information is then synced across all retail locations and connected devices. When grouped into different segments, customers’ spending history can be used to pinpoint the strengths and weaknesses of the marketing campaign and business model as a whole.  Moreover, customer segmentation analysis also provides retailers with a better idea of who buys what, which can be used when expanding products or adding new merchandise.

Enhancing marketing campaigns

One of the biggest advantages of customer segmentation analysis is that it helps in enhancing the marketing campaigns of retail companies. By tracking different customer groups, retailers can analyze different variables that will help them determine ways to attract new customers, build brand loyalty, and create awareness around specific products.

Customer segmentation analysis

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Market segmentation analysis

Infiniti’s Market Segmentation Analysis Helped a CPG Company Focus on Lucrative Customer Segments and Drive Profitability

Market Segmentation Analysis for a Consumer Packaged Goods Company

Due to growing ethnic diversity and broadening income disparity, consumers are becoming increasingly heterogeneous in their product preferences. This has severely impacted various market sectors, especially the consumer packaged goods (CPG) sector. With this, the need to identify subsets of a market based on demographics, needs, priorities, common interests, and other physiographic or behavioral criteria is becoming imperative for CPG companies to better communicate with their customer segments. To do so, companies are partnering with firms like Infiniti Research to leverage their expertise in offering market segmentation analysis solution. The insights obtained from Infiniti’s market segmentation analysis has helped various global giants identify the most lucrative customer segments and personalize business strategies for them to achieve maximum profits.

Are you facing difficulties in breaking down your market into targetable groups? Our market segmentation analysis solutions can help. Request a FREE proposal today!

Business Challenge

The client is a consumer packaged goods supplier based out of Germany. The client’s unstructured approach to marketing and promotional strategies resulted in huge customer churn. Also, as the client’s key competitors had already adopted a more focused approach by understanding the needs of their target customers, the client was losing ground to their competitors. Also, the client was not able to meet their customers’ needs and demands. This subsequently increased the customer churn rate by 13%. The client, therefore, realized the need to create small segments comprising of like-minded individuals and devise personalized business strategies to meet their needs. To do so, they approached Infiniti Research to leverage their expertise in offering market segmentation analysis solution.

With Infiniti’s market segmentation analysis solution, they also wanted to:

Better serve customers’ needs and wants – By leveraging Infiniti’s market segmentation analysis, the client wanted to categorize their customers into various segments based on their needs and requirements. By doing so, the client wanted to personalize their marketing and promotional strategies to efficiently serve their customer base.

Increase chances for up-selling and cross-selling – By understanding their customers’ purchasing patterns, the client wanted to recommend other relevant products matching their requirements and increase the chances of up-selling and cross-selling.

Differentiate product prices by segment – As managing customers’ price perception has become important for businesses, the CPG company wanted to differentiate their product’s prices by segments to sustain higher margins.

Attract additional customer groups – By employing a target market segmentation analysis approach, the client wanted to devise targeted marketing plans for different customer segments and differentiate their products according to their customers’ demands.

Focus only on target audiences – The client noted that promoting their products across wide customer segments resulted in huge loses for the company. This even increased the churn rate. The client, therefore, wanted to leverage Infiniti’s market segmentation analysis to identify their lucrative customer segments and focus on personalizing their business strategies for profitable customer segments to achieve maximum profits.

CONTACT US to know how our market segmentation analysis can help you efficiently categorize your customer segments and create compelling marketing and promotional strategies for them.

Solutions Offered and Value Delivered

To help the client segment their customers into various groups, the experts at Infiniti Research followed a four-phased approach to customer segmentation.

  • The initial step of market segmentation analysis involved conducting preliminary research. As a part of preliminary research, the experts conducted customer surveys. The factors such as highest purchased consumer packaged goods, customers’ shopping patterns, and their preferred channels of purchases were analyzed.
  • In the second phase of market segmentation analysis engagement, the experts segmented customers into various categories considering factors such as their age, geography, income, lifestyle, and behavior.
  • The next phase of the market segmentation analysis involved filtering lucrative customer segments from the target market. For this, the experts conducted manual and statistical analysis.
  • The final phase of the market segmentation analysis involved conducting demo marketing and promotional campaigns for the categorized customer segments to gauge the effectiveness of different segments.

The insights obtained from Infiniti’s market segmentation and customer analysis solution helped the client to understand their customers more efficiently and craft compelling marketing and promotional strategies for them. This helped the client to influence their customers’ buying decision. This targeted marketing approach even helped the client to better match their lucrative customers’ needs and attract new customers. Also, the market segmentation analysis engagement helped the client to recommend products to their customers according to their needs and demands. This increased up-selling and cross-selling and further resulted in an increase in the company’s sales rate.

By understanding the needs and demands of specific customer segments, the client was also able to create their own niche products to attract wider customer segments. This further helped the company to utilize their marketing budget on their lucrative customer segments. Also, with Infiniti’s market segmentation analysis solution, the CPG company was able to reduce customer churn and attract new customers.

By leveraging Infiniti’s market segmentation strategies, the client was able to achieve sales growth by 19%.

19% Increase in Sales Rate

Want to gain more insights into the benefits of leveraging our market segmentation analysis solution? Request for more info!

What is market segmentation analysis?

Market segmentation analysis is the process of segmenting customers into smaller groups based on their unique characteristics including age, income, requirements, behavior, and purchasing patterns. Market segmentation helps marketing professionals to personalize marketing and promotional activities for each segment to gain maximum traction. This also enhances customers response rate for products and services.

How to do market segmentation analysis

How to do market segmentation analysis

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Here are some other examples of market segmentation analysis. Read the below articles to know how Infiniti’s market segmentation analysis solution has helped companies across other industries.

https://www.infinitiresearch.com/white-papers/target-market-segmentation-infiniti-research-success-story

https://www.infinitiresearch.com/casestudy/market-segmentation-strategies

https://www.infinitiresearch.com/casestudy/market-segmentation-sporting-goods

Customer segmentation analysis

Customer Segmentation Analysis Increases Sales Conversion and Reduces Customer Churn for a Retailer – Infiniti Research’s Latest Success Story

Retail Customer Segmentation Analysis

The retail industry has changed dramatically over the past few years. This rapid pace of change has put immense pressure on retail companies to keep up with ever-changing customer expectations. Retail companies have also been forced to identify lucrative customer segments and devise value maximization strategies to boost profitability. This is where customer segmentation analysis comes into play. Customer segmentation analysis helps retail companies to gather comprehensive insights to deepen customer loyalty and pinpoint their marketing strategies.

Customer segmentation analysis can help you precisely define your customers’ needs and create better value for them. Request a FREE brochure to gain detailed insights into our services portfolio and to learn how our customer segmentation analysis will help you assess changes in customer behaviour and measure the effectiveness of a marketing campaign.

Business Challenge

The client is a retail company based out of North America. As the client was new to the US retail market, they were facing difficulties in understanding their customers’ buying preferences, likes and dislikes, and shopping patterns. However, before investing huge capital into the business, the client wanted to gather deeper insights around their target customers to tailor personalized strategies. They also wanted to customize their marketing activities based on their customer behaviour. To do so, the client approached the experts at Infiniti Research to leverage their expertise in customer segmentation analysis.

By leveraging Infiniti’s customer segmentation analysis, the client wanted to:

Improve product and service offerings – By leveraging Infiniti’s customer segmentation analysis, the client wanted to gather relevant data on their customers’ needs to differentiate their product and service offerings. By doing so, the client wanted to enhance customer experience and outpace their competitors.

Enhance revenue – The client realized that putting efforts into the wrong segment can prove to be costly for the company. This can even increase the churn rate and lower upsell potential. The client, therefore, wanted to identify the profitable customer segments and promote their products and services.

Increase sales – With Infiniti’s customer segmentation analysis, the client wanted to specifically target their profitable customers and establish a perfect strategy to drive sales.

Focus on marketing activities – By efficiently segmenting customers into different sub-groups, the client wanted to create customized and focused marketing messages to capture customers’ attention.

Our Approach

To help the client segment the customer base, the experts at Infiniti Research performed customer segmentation analysis. Customer segmentation analysis approach involved segregation of the client’s customer groups into three categories namely – geographic, demographic, and psychographic segments. Also, the experts grouped customers into different segments using insights gathered from the research. The factors such as customer spend, frequency of purchases, channel usage, categories in which customers purchase, discount vs full price shoppers, and margin per customer was taken into consideration while grouping customers into various segments.

Results and Key Offerings

By segmenting customers into different sub-categories, the client was able to gain detailed insights into their customer segments. This helped them to differentiate their products according to customers’ needs. By leveraging Infiniti’s customer segmentation analysis, the client was also able to create targeted advertising and marketing campaigns for different subsets of customers. Furthermore, with customer segmentation analysis, the client increased sales conversion and reduced churn rate by 23%.

KEY FINDINGS AND OUTCOMESInfiniti’s customer segmentation analysis also helped the client to:

Increase competitiveness – By categorizing customers into various sub-categories based on their needs and requirements, the client was able to efficiently cater to their requirements and capture their attention by providing personalized offerings. This helped them to gain a leading edge in the market compared to their competitors.

Increase customer retention – Customer segmentation analysis helped the client to better serve their customer base. This helped the company to increase customer loyalty. Furthermore, this increased customer retention rate and reduced customer churn.

Optimize product price – By gathering detailed insights into the target customer segments, the client was able to efficiently price their products. By optimizing the product price, the client was able to ensure that customers get the most value for their dollars. Also, the client was able to enhance sales and revenues.

Customer segmentation analysis can help you precisely define your customers’ needs and create better value for them. Request a FREE brochure to gain detailed insights into our services portfolio and to learn how our customer segmentation analysis will help you assess changes in customer behaviour and measure the effectiveness of a marketing campaign.

What is customer segmentation analysis?

Customer segmentation analysis is defined as the process of categorizing a company’s customer into various sub-groups based on their characters and requirements. By grouping customers with similar characteristics, companies can easily devise value maximization strategies and create personalized marketing campaigns. Customer segmentation solutions have helped several companies to make strategic business decisions and thereby boost their revenue.

BENEFITS OF CUSTOMER SEGMENTATION ANALYSISWhy customer segmentation is the key to marketing?

In today’s customer-oriented world, the right customer segmentation can help businesses determine the most valuable customers and build marketing campaigns that suit them. In the long run, this will improve your brand loyalty and increase customer engagement. This success story from Infiniti Research describes how a leading transportation services provider was able to achieve these goals with our customer segmentation strategy.

Customer segmentation analysis can help you precisely define your customers’ needs and create better value for them. Request a FREE brochure to gain detailed insights into our services portfolio and to learn how our customer segmentation analysis will help you assess changes in customer behaviour and measure the effectiveness of a marketing campaign.

Market Assessment

A Leading Fashion Retail Brand Curtailed Losses and Increased Revenues by 20% – A Customer Segmentation Case Study

Business challenge

Over the last decade, the retail industry has undergone incredible disruption, largely impacting how customers shop and what they expect and demand from retailers. Fashion retail is one of the most dynamic segments in retail, wherein companies have to keep a constant watch on the changing trends. A failure to do so would result in a considerable decline in their market share. Although fashion retail is a highly united industry, the owners of fashion brands may find it difficult to thrive in the fiercely competitive industry due to its ambiguous nature. As the pace of change in the fashion retail industry accelerates, the need to have an innovative and sustainable customer segmentation models have become imperative.

Recently, a fashion retailer based out of Central Europe faced a decline in their overall sales rate. They also noted a substantial reduction in the number of frequent and repeat buyers. The company, therefore, approached Infiniti Research to undertake a detailed analysis to better understand the European fashion retail industry. The client wanted to leverage our customer segmentation solution to examine customer behavior, identify segments with a high potential for losses, and devise a mechanism to better understand the changing customer needs.

Building a customer segmentation strategy is no easy task, but within the retail sector, it is quickly becoming a necessity. Request a FREE brochure to know how our solutions can help you build an ideal customer segmentation strategy.

Solutions offered and value delivered

Infiniti’s customer segmentation analysis included a study based on a combination of factors such as customer needs, purchase patterns, attitudes, and behaviors. The customer segmentation solution offered to the client helped them uncover lucrative, under-served customer segments. Furthermore, gleaning insights into the potential customer segments helped the fashion retailer to determine the profit potential of each segment by analyzing its revenue and cost impact. The unique customer segmentation strategy also empowered the client to differentiate their brand from the global competition. This, in turn, helped them break through the cluttered market space with a unique and convincing proposition.

Targeted and focused strategies are the key to survival in today’s competitive world. Learn how we can help you devise an ideal go-to-market strategy. Request a free proposal.

In a span of eight weeks, the client was able to transform their operating model into a more segmented, customer-relationship based structure. This helped them to improve their wallet share and increased their overall revenue by 20%.  Moreover, with the help of Infiniti’s customer segmentation solution and recommendations, the client was able to increase their customer retention rate by 2X.

Importance of customer segmentation

customer segmentation

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