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
Retail 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.
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 customers 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.
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