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How Customer Segmentation Benefits Your Business

Customer Segmentation is the Bedrock of Effective Marketing

customer segmentation

Customer segmentation refers to splitting your customers up into different groups, categories or segments. The segmentation is based on certain aspects that they might have in common. These common factors can be as basic as geography or purchases of prior goods and services. Or even as involved as demographics and socio-economic behaviours.

The motivation behind splitting up your customer base in this way is to improve your marketing strategy. Furthermore, it curbs marketing fatigue within your customer base.

Once you know who the audience is for each specific piece of marketing material, you can fine-tune and personalise it. As a result, your marketing will better resonate with each customer.

For a more in-depth overview of the history and benefits of customer segmentation, take a minute to peruse this article.

How Customer Segmentation Works

Dividing your customers shouldn’t be difficult. Think of it as a sifting or sorting process:

First take all the customers of a certain geographic area, then consider the services you offer. For example, divide them into owners of loose standing homes and owners within residential complexes or estates. You could split your customer base into pool owners and non-pool owners. Furthermore, a split could be made between properties with carports as opposed to those with garages. Or single vs multi-storey homes. The split depends on your services and what you wish to accomplish with your marketing.

The takeaway here is that proper customer segmentation will minimise incorrect marketing. Imagine someone in a third-floor apartment being spammed with marketing material aimed at pool maintenance.

How To Ensure Customer Satisfaction With Segmentation

You can get creative with your segmentation and even make your customers part of the process. Most people like and appreciate personalised attention. Furthermore, they won’t hesitate to take a 3-minute survey to skip unnecessary newsletters.

You can easily set up a free customer survey to help you better understand your customers. Consider services such as Survey Monkey or similar survey tools on the web.

How To Make Customer Segmentation Worth Your While

According to the Mail Chimp website, a segmented marketing email campaign results in a 23% higher open rate than unsegmented campaigns. Furthermore, it results in a 49% higher click-through rate.

Everlytic, much like Mail Chimp and Survey Monkey, is an extremely useful tool to ensure customer satisfaction.

The best thing about customer segmentation is that your customers will end up feeling loved. And what’s better than that in this month of love?

Some dedicated personal attention always does the trick. Take the time to get to know your customers and give them exactly what they crave!