In an earlier post, we shared how customer segmentation in marketing boosts acquisition and retention. Segmentation allows you to develop smarter lead generation, however, it can be performed many different ways. The right way for your business will depend on your target audience and campaign goals. Let’s explore a few options:

1. Demographics

When discussing customer segmentation, many business owners picture segmenting by demographics. This means grouping people based on things like age, gender, income, education, occupation, or marital status. But trust us…you can go so much deeper. Demographic groups certainly have their place in marketing. For example, a mortgage provider can tailor their lead generation to target customers based on income levels, how long they’ve been in their home, what kind of current home loan they have, etc.

2. Geography

For some businesses, it makes sense to perform customer segmentation by location. This may help promote a newly opened storefront to potential customers in that particular city, or offer location-specific contact information for residents. On a broader scale, it can segment at the county or state level where your business has a presence. Even online businesses can use that information!

3. Purchase History

If your business has a large customer base, customer segmentation by purchase history can reveal useful marketing insights. Target customers based on which products they buy, and send special promotions for similar ones. Alternately, target by how often they make a purchase, or how much they have spent; these can indicate your high-spending customers. For digital products, and especially in the case of subscriptions, also consider usage history.

4. Timing

We’ve covered life event triggers in a previous post. Life event triggers are great for businesses which depend on timing—like a moving company targeting customers who just purchased a home. However, timing can include other things, such as whether customers tend to buy on weekends or weekdays, or whether they restock on dog food every three weeks. Seasonal businesses, such as Halloween stores, know all about timing. Many businesses can benefit from this kind of customer segmentation to keep messaging relevant.

5. Lifestyle

With the advent of the internet, it’s become easier than ever to perform customer segmentation by lifestyle choice. Vegan? Fitness nut? Foodie? Gamer? Outdoor enthusiast? The options are endless. Segmenting in this way helps businesses see what their customers value, which informs marketing to make it more effective.

6. Benefit

This approach centers more closely on the product. It asks the question, “In what way is this product beneficial the the customer?” A daycare owner and a parent may both benefit from a children’s book subscription, but they do so in different ways. The daycare owner provides engagement to a room full of toddlers every afternoon, while the parent may connect intimately with their child over a bedtime story each night. Segmenting customers by how they use your products can make your marketing that much stronger.

7. Value

At the end of the day, the most important customer segmentation approach is the one that provides the most value to your individual business.  It’s easy to say the highest value is from the biggest spenders, but if your immediate goals are lead generation, you might want to focus on your most frequent clients and generate a referral campaign.

Focusing on your immediate lead generation needs will help drive the segmentation you should develop. Reach out to an omni-channel marketing expert to make the most of your segmentation. 

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