Customer Segmentation is an important marketing strategy that is the practice of dividing a broad customer or business market consisting of existing and potential customers into sub-groups of consumers depending on some type of shared characteristics.

Today, in this blog, CloudVandana will discuss customer segmentation to increase the marketing performance of an organization.

Brands need to make their customer feel special and valuable every time. Customers also expect to be treated with personalized offerings. Customers get disappointed when they get generic messages.

So it is essential to reach them on the right level. Sometimes it might sound like a complex process to marketers. Customer segmentation helps to understand the audience so that marketers can effectively target the marketing campaigns.

Customer Segmentation

It is the process of dividing customers into groups or segments based on their age, buying habits, gender, and needs. Businesses across the globe use this model to better understand their campaign so that it becomes easier to target customers with more personalized marketing campaigns.

This process is not just about reaching new audiences for business enhancement but also reconnecting old customers with new offerings. Marketers need to consider the uniqueness of every customer and their buying behavior.

The Importance Of Customer Segmentation

Customer segmenting helps to increase customer loyalty. The more personalization a company can use, the more loyal customers it can get. So, the conversion rate increases.

Let’s have a look at the customer segmentation models

1. Demographic Segmentation Model

This model divides the prospects based on demographic factors like age, income, occupation, and marital status. After considering these factors, marketers need to select the platforms like social media, emails, etc., for reaching out to them.

2. Geographic Segmentation Model

This segmentation categorizes the audience based on their location, work location, etc. Though this segmentation does not provide much information about the audience, marketers can use this segmentation model for a more clear picture of the customers.

3. Psychograpic Segmentation

This segmentation model creates groups based on hobbies—lifestyle choices, personality traits, values, etc. This segmentation model helps marketers to offer their customers highly focused, relevant campaigns.

4. Technographic Segmentation

This segmentation process categorizes people based on their devices, hardware, and software. Marketers should segment people based on their devices, the apps they prefer, the software they are working with, etc. Marketers then collect the data by scraping websites, sending surveys, etc., to run campaigns with those data.

5. Behavioral Segmentation

This segmentation model enables marketers to know how their customers interact with the business. It groups the people together based on behavioral patterns. These patterns show how consumers feel about the business and determine how to reach them successfully at every stage of the sales funnel. At first, marketers need to track the behavior; then, they can send customized offerings based on those activities.

6. Requirement-Based Segmentation

Successful marketing requires fulfilling the customers’ needs with the products or services. Needs-based segmentation looks into the customers’ requirements and their pain points to offer them a personalized solution.

7. Value-Based Segmentation

Value-based segmentation can help marketers group customers together based on their value to the business. Organizations can directly reach out to those customers who spend more time with highly targeted campaigns and great customer service. Marketers can identify the most loyal clients and the costs to retain the business.

These segmentation processes help organizations lead to satisfied customers and enhance the brand reputation. Organizations need to implement and maintain customer relationship management (CRM) software like Salesforce to provide a seamless experience to the customers and maintain the marketing process effectively. Salesforce Marketing Cloud is a great solution for handling marketing engagement.

Are you looking for a reputed Salesforce Partner for a successful CRM integration? Please feel free to schedule a consultation call with CloudVandana and get the full return on your CRM investment. Call us now.