Customer segmentation

All marketers will come across the term customer segments or customer segmentation during their career. This is because this approach to grouping, streamlining and targeting your customers is a sound and sensible way of contacting your customers with, hopefully, relevant content.

Customer segmentation data can be a way to better understand your customers – rather than seeing them as one homogenous group. 

You can choose to target your customers in many ways, one of which is to target based on segments.

The benefits of customer segmentation are numerous, and the main benefits your business will experience will largely depend on your specific goals and business type. However, generally speaking, the main benefits of customer segmentation are:

• Get an insight into your customers
• Improve customer engagement
• Gain a competitive advantage
• Focus your efforts on the right people
• Improve your messaging to be more relevant
• Improve assessment of campaigns

Customer segmentation data analysis can provide you with more information about your customers than ever before and can then help you target them effectively. By building relationships with these customers through targeted marketing, you’ll boost retention rates and make your marketing campaigns more profitable than ever. 

When conducting customer segmentation analysis, customer groups that have similar characteristics are grouped together. They can be divided into segments based on a wide range of characteristics and criteria. These can be socio-demographic, geographic, psychographic and behavioural characteristics. 

Here are two common examples of customer segmentation analysis.

Identifying your top customers using RFM / RFV: 
RFM / RFV analysis considers three transactional metrics, how recent a purchase was (Recency), how often someone has bought (Frequency) and the value of these purchases (Monetary / Value) and is an efficient customer segmentation tool to identify an organisation’s top customers. The result of this customer segmentation analysis can be best visualised in a Venn diagram. 

Classifying customers by their lifetime value: 
Another common method to allocate marketing activities and budgets efficiently is to differentiate customers by their expected lifetime value. Here, customer segmentation analysis helps to identify those customers with a low, medium and high customer lifetime value. 

Apteco’s segmentation marketing software allows users to conduct a wide variety of customer segmentations, considering many aspects and combinations of customer characteristics and behaviour. 

An effective and intuitive segmentation marketing software solution can help you thoroughly understand your customers better and will help you determine the best way to reach them based on their preferences, previous purchases, and current interests. Customer segmentation tools will also help you track and manage how customers move between different segment types, allowing you to make relevant adjustments where necessary.

With our customer segmentation tools, you can analyse very large data volumes at lightning speed. Easy to use drag and drop mechanisms allow you to conduct your customer segmentation analysis within seconds. You have a wide range of interactive data visualisation options at your disposal, including Venn diagrams, bar charts, pie charts, word clouds, charts, maps and much more, which will help you quickly identify relevant customer segments.

With the Apteco Orbit™ online platform, you can access your customer segmentation data from anywhere and easily share visualisations of your customer segments with your colleagues. Then, turn your insights into action by creating targeted customer segments directly from visualisations and upload data and automate campaigns using your existing martech stack and ESPs, or our campaign management tools.