Customer segmentation checked – what’s next?

September 3, 2021

Audience segmentation is a particular dialogue with customers. The classification makes the creation of an effective marketing message easier, targeted for a specific type of service user. With its help, you will be able to choose the channel to reach the different groups almost effortlessly, considering their interests and habits. By separating and targeting, you also realize which segments are the most profitable ones and focus on them instead to distribute your efforts among financially insignificant contributions. Use the data you collect to improve your customer-related performance and thus enable upselling and cross-selling. 

After having split the users, you can use these segments in several different ways.

  • Make an evaluation. Well-known is the rule that postulates that the biggest part of the sales (80%) comes from only 20 per cent of the customers. So, after distinguishing one group from the other, and focus on the high-value one to generate the winning circle. It is useless to invest with customers whose buying power or interest tend to be close to zero. Instead, address those who really need it. And segment further, so that you get as close as possible to the probability of them buying your product and staying satisfied with it.
  • Focus on relevance. You already know who buys the most of your services. Yet, this is not enough per se. It should not exclude the need to adjust to their slang. Find out how precise your messages reach the “shoppers”, what they actually understand. Couldn’t you increase their spending by adjusting your advertising language?
  • Prioritize segments. Which groups buy your most expensive products or services? Calculate how much money you spend on advertising and what channel or approach brings the highest added value. Set your priorities – using both the information you collect from people and the financial analysis of the targeting. Identify as accurate as possible the user to find out and remove any difficulties along their way to the product. And to strengthen the perception of personally dedicated attention. 
  • Improve your offering. Segmentation makes sense if you begin to make more successful products that are highly relevant to your customer needs. It is crucial to emphasize the benefits to counteract the competition attacks in advance. 

During the classification and targeting, remember that customer segmentation is a successful marketing tool only when applied accurately.

Read more:

Seg-ment your clients

Idea Management Tools – Part I