What is customer segmentation?
Customer segmentation is the process of dividing customers into sub-groups based on common characteristics so companies can market to each group effectively and appropriately. At the same time, it is an essential tool that aims to save companies from the high costs of mass marketing targeting everyone who is not in the target audience, by getting to know the customer better and quickly following customer trends, by going to the right target audiences with the proper methods. Data-driven segmentation, on the other hand, is to analyze customers and potential customers using accurate and quality data.
Why does it matter to segment customers?
Segmentation allows using of time, money and other resources in a more efficient way. By segmenting the market, companies provide information about their customers. When the analyzes are made according to the determined customer groups, campaign and marketing strategies are created more soundly.
Many benefits can be achieved if customer segmentation is done correctly. For example, the best customer segmentation exercise available can tangibly impact your business results by doing the following:
- Increasing revenue with segment-based marketing
- Improving customer service quality by getting to know customers better
- Better product development by anticipating needs
- Developing the different marketing strategies for each segment
- Better communication with customers
Types of Customer Segmentation
There are many ways to segment customers. But first of all, it should be known that a single method cannot be used for grouping. The segmentation method should be chosen according to the type of work and customers.
Here are the several types of customer segmentation:
- A Priori Segmentation
- Needs-based Segmentation
- Value-based Segmentation
- Demographic Segmentation
- Technographic Segmentation
- Geographic Segmentation
- Behavioural Segmentation
Which is the best method?
The answer to this question varies depending on the type and purpose of the application. We make it easier for companies to reach their goals with data-driven models specially developed for marketing by Growth Art. Offering advanced analysis tools supported by AI Technology, GrowthArt also takes into account the spatial dimension in order to understand all segmentation types easily and effectively.
The creation of all the mentioned segmentation types using realistic and quality data will provide a lot of benefits to the companies. All these types of segmentation contribute to obtaining invaluable results. However, these data should be used considering the purpose of the applications to be made and the types of applications to be made. Accurate data to be used in accordance with the purpose will enable companies to reach their targeted customer segment both fully and in a much easier way.
