Data segmentation
To target the right customers, brand need to do segmentation the right way, not only for marketing campaign but also for analytics and insight.
Segmentation criteria
Segment customers based on three categories data
Contact attributes
Define brand industry data model and attribute before using them as criteria for customer segmentation.
Contact behaviors
Segment by all touch points data collected from online to offline and marketing campaign engagements.
Related data
Product usage feedbacks, ticket support or account banking, credit card... can be used segment criteria
Key benefits
Why do you need to segment your customers
Hyper-Personalization
Instead of sending a generic message to everyone, you can tailor messages based on specific behaviors
Consistent experience
A segment in a CDP is synchronized across all channels from web to app to physical store
Right person, right time
Allows for immediate campaign activation the moment a customer performs an action
Suppression lists
Save your money by creating segment and exclude (suppress) them from ads for specific product
Cross-sell & Up-sell
Increasing Revenue & CLV by maximize the spending potential of each customer group using segment
Churn Prediction
Create segments for High Risk of Churn then send offers to retain them before it's too late
Lead Nurturing
Categorize customers by their stage in the buying funnel to send message & nudging them toward a purchase
Trend Detection
By analyzing fast-growing segments, can spot consumption trends to adjust inventory or develop new products
Price Sensitivity Analysis
Create segments based on purchase history to know who needs a promo to convert, who is willing to pay
Segmentation use cases
How do you segment your customers for marketing, sales and customer service
Ad-hoc segmentation
Is feasible for ad-hoc campaigns where brand want to send promotion or offer to customers, happen randomly on monthly for example. The criteria may be differ based on strategy.
Real-time segmentation
The customers in this segmentation will be added or moved time by time if they match with segmentation rule. For example, the customers may be in active segmentation of this week but not in next week if they don't have any online behaviour capturing.
Behavioural segmentation
Follow your customer journey, you defined the touch points to collect the data. You can segment customer by touch point such as customer have page view more than three times per week or customer who add products to cart. You should use two or more touch points together to have better result like add product to cart but not purchase.
Life-cycle segmentation
Depending on marketing strategy and business goals, you can target the customer based on their life cycle stage: new customers, active customers and churn customers. You may focus on new customers on this time for acquisition, but later than you can focus on churn customers to increase customer lifetime value.