What is Segmentation?
How do you target certain elements of your customer database as part of a strategic campaign? The best way is by using segmentation. A segment is a group of customers with similar characteristics, perhaps they react the same way to an offering, spend the same amount or have similar preferences.
Segmentation can be based on a variety of indicators including behaviour, loyalty, location, demographics, psychographics and transactional value. There isn’t a single way to segment and there shouldn’t be! There are so many factors that come into play: budget, market, business requirements, data content, etc.
Adopting a multi-faceted, ever-evolving approach allows you to effectively focus on relevant customer segments when they’re most receptive.
Why do you need customer segmentation?
Segmentation is essential to enhance your customers’ experience and maximise profit. Tailor your contact across all business functions to effortlessly become a customer-centric organisation.
Strategy then drives tactics!
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat!” Sun Tzu
A classic quote and as applicable to the boardroom as it is on the battlefield. The two work together – but experience shows that strategy must drive tactics!
Clever and accurate customer segmentation greatly informs your marketing strategy. This informs innovative campaigns at the tactical level.
At Locstat we use segmentation during the early stage modelling of a client solution via our recommender systems or Customer 360 solutions. Once this operationalised capability is at your fingertips, backed up by e.g. event processing or graph technology, you can truly become a customer-driven organisation. Innovation, intelligent tactics and targeted, personalised recommendation campaigns now become real possibilities. Check out our Customer360 brochure for more info!