Customer base segmentation is an important part of any marketing strategy. It allows you to identify subgroups of customers to create stronger relationships, implement targeted messaging, and deliver personalized experiences. It’s also useful because most businesses don’t have the resources to target the mass market.
Different products, benefits, programs, and marketing strategies are effective for different groups of customers. Indeed, knowing how to segment your customer base can help you create impactful marketing campaigns while keeping costs low.
4 Common Types of Customer Segmentation
There are several ways to categorize customers. Segmenting customers can be beneficial when offering a new product or tweaking an existing marketing strategy. Based on your needs, you can divide your clients by:
- Demographics – generation, age, gender, ethnicity, education, income, occupation, or marital status
- Geographic Factors – country, state, region, climate, or population density
- Buying Behavior – frequency, type, and time of purchases, number of items purchased, or number of visits or inquiries before purchase
- Customer Journey Stage – awareness, consideration, or decision
Evaluate Your Clients
Segmentation starts by examining existing information about your clients and collecting the missing pieces. In the future, this can help you segment the target audience as well.
Collect the missing demographic information by reviewing or updating database information, creating surveys, and browsing social media profiles. Then, pay special attention to how clients interact with your brand.
Review purchasing behavior to determine how frequently they buy your product or use your services. Also consider what type of customer they are. Do this by rating customer satisfaction and evaluating levels of brand loyalty. Another important part of creating customer groups is uncovering interests, hobbies, and media habits.
Develop a Strategy
After segmenting your client base, devise a strategy to take full advantage of the information. Each segment requires a different approach, so build strategies based on the segments’ behavior. Consider interests, demographics, and loyalty levels when developing campaigns.
Since you now have extensive information about customer base subgroups, you can tailor personalized messages and design individualized offers. You can adjust existing material to create:
- Targeted ads
- Customized email content
- Relevant product announcements
- Impactful promotional materials
You can also use the information to develop lead generation strategies, find the right approach to reach your target audience, and create relevant value propositions.
Keep Track of Segments
Once you’ve grouped your clients and start seeing a return from the process, don’t abandon the data. Create a system to continue using the segments you have identified.
Do this by adding a field in an existing database to track the segmentation or using the new tagging feature in your CardTapp app to manage your leads. By adding tags to your app users, you can quickly review the app activity of different segments. It also makes activities like targeted SMS Marketing extremely easy.
When your customer personas are well-developed, communicating with a large group via one-to-one text messages becomes incredibly effective. You can tailor a message to reach a segment instead of creating individual messages for each client.
Save Time With Segmentation
Customer segmentation doesn’t just make it easy to create targeted offers; it saves time, money, and effort. Using segmentation streamlines sales and marketing activities while improving customer satisfaction.
To save even more time, think of a way to automatically tag you CardTapp app recipients with automated tagging. To learn more about how CardTapp can help you segment your customer base and generate leads, contact us today.