Customer segmentation is important when organizations are trying to send messages to a target market. Segmenting consumers allows marketing teams to expand budgets and make the most of marketing money by reaching the most perfect visitors who are likely to become leads, without wasting money on impressions that might not get converted. Reaching to a large number of people with the same general messages is a difficult task for most marketing teams and it comes as no surprise that most organization’s strategies fail when it comes to increasing customer reach. This is where the role of customer segmentation models comes into the picture. Efficiently designed customer segmentation models help in knowing the customers by finding their unique interests, behaviors, and preferences. It is, then, critical for companies who are looking to improve personalization across all channels and gain a better understanding of their customers. To know more about our complete portfolio of market research solutions, Request a free proposal
Now, it has become clear that there has been a shift towards “customer-centric” business models. And this looks like an obvious strategy for any company or brand, execution often proves to be a challenge. It’s great that companies want to cater to their customers’ wants and needs, but when it comes down to it, it’s difficult to really understand a single customer among the masses. Customer segmentation is one technique that has proved useful for marketers to develop better insights about their customers. Using segmentation, you can better forecast the types of products and promotions that will resonate best with which groups of people.
“Effectively designed customer segmentation models help in understanding the customers by identifying their unique interests, behaviors, and preferences,” says an industry expert from Infiniti.
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Types of Customer Segmentation Strategies:
- Demographic segmentation: Customer segmentation on the basis of demographic data is a very precise way of personalizing the marketing message. A lot of features can be considered such as age, location, gender, ethnicity, household income, marital status, occupation, and education level. But there is a certain trick to demographic segmentation and that is to find the most powerful way to group the customers so that it’s simpler to make a reliable and ongoing conversation with them.
- Geographic segmentation: This is one of the most generally used types of customer segmentation strategies that use factors like nations, states, cities, regions, postal/zip codes to segment the customer base into many groups. This, in turn, helps marketers to run customer specific promotional campaigns and offer exclusive products. To know more about the types of customer segmentation strategies, Request a proposal
Customer Segmentation Models
- Segmentation based on the pattern of purchasing: Evaluating the purchase patterns of customers shows light on what, how, and when the targeted customers make the purchase. Further, this helps in finding the regular shoppers as well as the shoppers of the highest value. This is one of the direct ways to retain customers and is one of the customer segmentation models that helps in retaining customers successfully.
- Segmentation based on goals of customer: The process of customer segmentation needs and uses lots of data. Data such as their geography, demography, and interests help in interpreting the goals of the customers. Such customer segmentation models give a thorough and in-depth analysis of the targeted customers. To know more about the types of customer segmentation models, get in touch
Infiniti Research is a global market intelligence company offering strategic insights to help look beyond market disruptions, study competitive activity, and develop intelligent business strategies. Listed below are the types of customer segmentation models.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us
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