Know your customers: the importance of segmentation

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With the rise of online marketing, email marketing and social media marketing continuing apace, adding the often-overlooked element of customer segmentation into the mix is more vital than ever, if you want your brand to truly succeed.  It’s an evolving area of marketing, and it’s important to frequently review and challenge your strategy.

It is no longer acceptable to send out blanket emails to a large group – even a segmented group – and hope for the best.  Buyers are becoming far more sophisticated and their expectations from online businesses are high.  Personalisation is key.

Buyers can broadly be grouped by common sets of behaviours.  If you can tailor your offering to meet those behaviours, then you will have a distinct competitive advantage.  Not only will you retain custom by sending out very targeted communications, but you will also save costs by prioritising the most profitable segments.

The concept of segmenting customers can be likened to a number of traditional sales techniques, such as personal banking or clothing for petite and tall builds. Insights built on an understanding of human behaviours have always been a source of competitive advantage and this is truer than ever in today’s digital age. The only difference is that choosing the right path is not always so obvious.

So what do you need to consider?  Well firstly, look at the simple data: who buys from you, what do they buy and most importantly who buys what.  Then you can take it a step further by gathering insights from all of the marketing channels available to you: emails, paid search ads, social media and website visits.  There is a mine of information waiting to be untapped regarding your customers’ lifestyle, preferences and how they like to receive information.

Segmenting customers can however be complex, and not always easy to reconcile with existing methods of targeting buyers. To get it right, you need to choose a methodology which is both strategic and sustainable in the long term.

At 55 Connect, we can help guide you through this process.  We can advise on the best available tools for gathering data and using it effectively to segment and target your customers, so they receive communications that are highly relevant and attractive to them.  With the right segmentation strategy in place, you will see a visible increase in customer loyalty, new sales and, ultimately, your profitability.









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