3 Types of Customer Segmentation Models that You Should Consider

September 10, 2018

Appealing to a large number of people with the same generic messages is an arduous task for most marketing teams and it comes as no surprise that most businesses’ strategies fail when it comes to boosting customer reach. This is where the role of customer segmentation models comes into play. Effectively designed customer segmentation models help gain a deeper understanding of the customers by identifying their unique interests, behaviors, and preferences. It is, therefore, critical for businesses who are looking to enhance personalization across all channels and gain a better understanding of their customers.

To help such businesses, we at Infiniti Research, have highlighted the three common types of customer segmentation strategies that should be incorporated into every marketing campaign.

Types of Customer Segmentation Strategies 

Demographic segmentation

Segmenting the customers on the basis of demographic data is a very obvious way of personalizing marketing messages. There are a lot of factors that can be considered, such as age, gender, location, ethnicity, marital status, household income, occupation, and education level. But there is a certain trick to demographic segmentation and that is to find the most effective way to group the customers so that it’s easier to make an authentic, ongoing dialogue kind of conversation with them.

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Geographic segmentation

Geographic segmentation is one of the commonly used types of customer segmentation strategies that leverage factors like states, nations, cities, regions, postal/zip codes to segment the customer base into various groups. This, in turn, helps marketers to run customer-specific promotional campaigns and offer unique products.

Behavioral segmentation

Behavioral segmentation is one of the types of customer segmentation strategies that divides a population based on their behavior and their response towards any product. In this segmentation strategy, the people are grouped into a single segment to make the marketing campaign more specific. Sich types of market segmentation strategies help companies to promote their products and services in a streamlined manner. This form of segmentation is basically done for products that are a niche in nature and are targeted towards the demands of the customer

Customer Segmentation Models

Segmentation based on the pattern of purchasing

Analyzing the purchase patterns of customers sheds light on what, how, and when the targeted customers make the purchase. This further helps in identifying the frequent shoppers as well as the shoppers of the highest value. This is one of the shortest ways to retain customers and is one of the customer segmentation models that helps in retaining customers effectively.

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Segmentation based on goals of customer

The process of customer segmentation requires and utilizes lots of data. Data such as their demography, geography, and interests help in defining the goals of the customers. Such customer segmentation models give a detailed and in-depth analysis of the targeted customers.

Segmentation based on interaction frequency

This is one of the common customer segmentation models that help analyze how many customers are engaging with your website and content online. It also helps to examine what is the frequency of customers who are messaging you for support on social platforms, or email, and offline interactions. Such interactions act as crystal balls in determining the growth of the business.

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