Four New-age Customer Segmentation Models Every Marketer Should Consider
Customer segmentation is the heart of the marketing efforts of any company. Traditional techniques such as demographic, geographic, behavioral, and psychographic segmentation could often prove to be hectic for marketers. These practices often involve grouping consumers into segments based on their needs and self-stated psychographic profiles and then attempting to target a high priority segment with […]READ MORE >>
Customer segmentation is the heart of the marketing efforts of any company. Traditional techniques such as demographic, geographic, behavioral, and psychographic segmentation could often prove to be hectic for marketers. These practices often involve grouping consumers into segments based on their needs and self-stated psychographic profiles and then attempting to target a high priority segment with new offerings and advertising. Yet, in most cases, traditional customer segmentation models do not work that well because it is rarely very actionable. The best marketing interactions are those that resonate with the audience by taking into account who they are as individuals. It is important to make customers feel that the brand in addressing to them personally through their marketing efforts. This blog takes you through some of the types of customer segmentation that modern marketers can use for building out segments and propelling their customer retention strategy with a personalized experience.
Types of customer segmentation models
Companies need to gain a clear idea of when, what, and how their customers have purchased in the past. This helps gain predictive customer segmentation models for the future. It is essential to find the most frequent shoppers, identify the highest value customers and savers, and learn about what motivates each group. This makes it much easier to guide them towards the offer, product or services most perfect for them and consequently result in a conversion. Moreover, this proves to be a great way to pitch more products or upgrade to other option based on the customers’ purchase patterns, leading to greater customer satisfaction and loyalty.
One of the best ways to identify how to retain a customer is by examining how they continue to interact with the business post-purchase. These interactions can be in the form of heading to your website or app, engaging with your website and online content, messaging you for support on social media, or email and offline interactions. Watching how customers change over the course of the customer lifecycle forms an integral part of understanding their intentions in terms of retention. Layering different behaviors and types of customer segmentation together makes it easier for companies to predict and act on a customer’s wants and needs at a certain point in their lifecycle. The more granular the company can get at this analysis, the better.
Targetable interest and value
One of the newest customer segmentation models used by modern marketers is to segment the customers based on the interests, cultural values, and lifestyle characteristics of the target customers. This data is available via Google or Facebook profiles of customers and can be used to create segments on factors that reflect actionable characteristics of the customer. This is also one of the most challenging customer segmentation models where every ad campaign becomes a test that you have the target segment right because they should exhibit greater response.
This is one of the most challenging types of customer segmentation that involves bringing multiple types of data – demographic, geographic, behavioral, and psychographic – into a wider profile centered around the customer’s specific goals. From the analytics tools available on social platforms companies can pull out rich data on their customer segments, incorporate information that shapes their use of the company’s product, job title, location and hobbies, and parameters that speak of their goals. This is a chance to really hone in on more unique and individual traits of the customers, such as personality and psychographics. This proves to be a great way to add more impact to any retention messaging and efforts made towards these customers.