customer segmentation approach Archives - Business Intelligence

Tag: customer segmentation approach

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.

benefits of market segmentation

Unearth New Opportunities and Drive Profits with Customer Segmentation Analysis

With the proliferating marketing platforms today, customer segmentation analysis has become a pre-requisite for businesses to boost sales, reduce attrition, and improve prospect and customer experience. Also, around 70% of CMOs agree that customer segmentation analysis is extremely valuable in providing a great customer experience.

By segmenting customers into various groups that share similar needs, organizations can devise personalized marketing strategies for each group differently and focus on all customer needs at any given time, making marketing and customer care more organized and targeted.

Infiniti’s customer segmentation analysis solutions have helped several Fortune 500 companies devise customized approaches that satisfy the needs of different customer groups and drive customer loyalty and profitability.

Below, we have summarized some of Infiniti’s success stories that highlight how customer segmentation analysis has helped companies to gain a leading edge in today’s competitive marketplace.

Elevating Sales by 17% for a German Retailer with Customer Segmentation Analysis

With a multitude of choices available for customers in the retail industry, developing a robust marketing strategy to target specific customer segments is becoming important in the retail industry. Don’t you agree? This success story is an excellent example of this. A retail company was finding it difficult to segregate the customers in terms of need-based and value-based segments in the German market. Also, they faced issues in managing attrition rate and acquiring new customers. They were looking for a market research firm to help them in segmenting customers based on their value for the brand.

Infiniti’s market intelligence experts helped the client to devise a sound commercialization strategy to effectively engage customers and enhance customer retention. Also, our retail customer segmentation analysis engagement helped the client to elevate sales rate by 17% within a year.

A Leading Fashion Brand Curtailed Losses and Increased Revenues by 20% with Customer Segmentation Analysis

Worldwide e-commerce growth is on the rise, and it has placed immense pressure on fashion retailers to differentiate themselves and provide superior shopping experiences in-store. However, to devise personalized marketing approaches, businesses require a thorough understanding of their customers and their needs. This is where the real benefit of leveraging customer segmentation analysis comes into play.

Customer segmentation analysis can help in dealing with such issues efficiently. This is clearly evident in this success story where the client, a fashion retailer, was facing similar predicaments. The company also encountered a substantial reduction in the number of frequent and repeat buyers.

Infiniti’s customer segmentation analysis solutions helped them to develop a well-aligned business plan to deliver sustained growth and empowered them to break through the cluttered market space with a unique and convincing proposition. Moreover, they were able to improve their wallet share and increase their overall revenue by 20%.

Enhancing Customer Retention Rate by 20% with Customer Segmentation Analysis

In the increasingly fast-paced banking industry, companies need to constantly evaluate the market and expand their offerings. Also, there is immense pressure to improve profitability and customer experience while adapting to the disruption caused by rising FinTech companies.

Our client, a banking company based out of the United States was facing the same dilemma. As such, they were looking for a research firm that could do an independent analysis of potential investment opportunities and provide detailed insights into their customers. Additionally, they wanted to segregate their customers based on their geography, psychography, and behaviors into separate groups and devise customized marketing approaches to gain maximum traction.

Our experts adopted a comprehensive three-phased approach to help the client develop a new customer segmentation approach and predict the future value of customers for the brand. Also, Infiniti’s solution helped the client to analyze the key drivers of customer satisfaction and devise suitable strategies to counter the decline in sales. In addition, they were able to enhance customer retention rate by 20%.

Retaining the Most Lucrative Customer Segments with Customer Segmentation Analysis Approach

Identify and implementing appropriate customer segmentation strategy models to profile and retain valuable customers seems to be challenging for businesses. This is where a custom market research service provider like Infiniti Research can make your work easier, as it did for a transportation services provider. The company wanted to devise a value-based approach to define their best prospects in the market. Moreover, they wanted to profile and target lucrative customer segments and avoid bottlenecks pertaining to the delivery of products.

With Infiniti’s customer segmentation analysis solution, they were able to profile customers into various segments and tailor marketing efforts for them. Furthermore, our customer segmentation analysis approach helped the client to devise a value-based approach to retain the most profitable customers.

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice