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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.

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 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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