By Katie Sweet
OpenClipart-Vectors / Pixabay
Since I joined the working world years ago, I’ve tailored the way I describe my job to whoever asks me “so what do you do for a living?” If the person asking is in the martech industry, for example, then I get pretty detailed about my role (content marketing) and what Evergage is (a personalization and customer data platform). But if the person asking is an elderly relative at Thanksgiving? Then I keep it simple by saying I work in marketing, and leave it at that.
What I’m essentially doing is organizing the people I interact with into a few broad categories and figuring out which of my basic elevator pitches is best suited for each group. In other words, I’m using segmentation to pick the message I share.
Customer segmentation has been around for a very long time, so the idea shouldn’t be new to anyone, especially marketers. But the way segments are built and used in today’s digital world is constantly evolving. So I want to give an overview of segmentation in this blog post. What is segmentation? How are segments built? What are they used for? I’ll answer those questions here.
Definition of customer segmentation
Businessdictionary.com defines segmentation as “the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics.”
To make it simpler, I would say that customer segmentation is about grouping people together based on shared traits.
Of course, I’m using the “customer” in “customer segmentation” as sort of a catch-all. You don’t need to create segments of just your customers. You can segment your prospects or target accounts, anyone in your email list, or even anonymous visitors on your site or mobile app.
Segmentation for analysis
By using segmentation in analysis, you create groups of individuals to uncover any meaningful differences between them.
Are customers who have installed your mobile app more loyal than those who haven’t? Do enterprise customers and small business customers use your SaaS product in different ways? How do website visitors who convert behave differently from those who don’t?
Those questions can all be answered by creating segments of your customers and prospects and analyzing how they differ. You can then use those insights to guide your marketing efforts going forward.
For example, you can prioritize promotions of your mobile app if you find it produces more loyal customers. You can encourage enterprise and small business users to try different features known to deliver more value for those segments. You can produce content similar to the types of content that leads to more conversions.
When you know how certain groups differ from each other, you can use that information to produce more successful, data-driven marketing campaigns targeted to the right groups of people.
Segmentation for personalization
In addition to informing your marketing strategy, you can also create segments …read more
Read more here:: B2CMarketingInsider