How to automate customer segmentation

Having an effective marketing strategy is of vital importance for every business. Whatever products or services you offer, people need to be aware of them and enticed enough to purchase. Learning how to convert traffic into leads is the key to growing your customer base. Luckily, there are many excellent marketing tools available. From website optimization software to social media, there are many ways to engage your customers and present your brand in an appealing manner. However, to successfully implement any marketing strategy, you need to know your customer first. Unfortunately, as your business grows, it’s impossible to develop a unique approach for each and every customer. Instead, dividing your audience into meaningful segments is a much better solution. It enables you to maintain a personal approach and establish quality rapport. What’s more, you don’t have to do it manually – here are some excellent ways to automate customer segmentation.

What are the benefits of customer segmentation?

Knowing your customers well is very important. The more you know their needs and preferences, the better you’ll be able to get to know them. Customer segmentation is a useful tool that will enable you to do exactly that. Collecting valuable data regarding your customers’ behavior will enable you not only to meet their standards but also exceed them. Here are the main benefits you can expect if you choose to automate customer segmentation:

• boosting campaign performance – audience segmentation enables you to reach the right people at the right time. Knowing your audience better will help you send the message tailored to suit a particular segment of your audience.
• informing product development — if you know your customers, you also know what they want and expect; you can adjust your product to better suit different segments of your audience
• gaining valuable insights – additionally, you’ll gain valuable information. For example, you’ll learn what areas of your business you can expand, how to improve your business focus, and make other relevant decisions.

Different types of customer segmentation

There are many different criteria you can use to divide your audience into meaningful segments. However, there are four main types you might want to consider:

Demographic segmentation

This is one of the most common types to automate customer segmentation. It refers to dividing your audience by observable qualities. For example, you can split them based on age, sex, occupation, marital status, education, income, and many other factors. All the information you need is low-cost and easily accessible. However, once you segment your customer base demographically, it would be a good idea to combine it with other types, as well.

Behavioral segmentation

Using the ConvertMore callback system as well as other optimization tools enables you to stay in touch with your clients’ needs and preferences. Not only does this leave a good impression, but also provides you with many ways to track your clients’ engagement with your brand.

This is important because it allows you to segment the audience based on their interaction with your company. You can track your audience’s online shopping habits, what actions they perform on your website, usage rate, and loyalty. All this data can help you cater to the different needs of different customer groups.

Geographic segmentation

This is another basic, but useful way to divide your audience. If you know the customer’s location, you can send location-specific ads and content. What’s more, you can take into account other factors. What’s the climate they live in? Is it a rural, urban, or suburban area? Knowing these details enables you to better tailor both your product and marketing campaign.

Psychographic segmentation

While this type is similar to demographic segmentation, it relies on data that is more personal and emotional. Although qualities you need to observe are not so easy to collect, they’ll provide valuable insights into your customers’ minds.  Knowing the details about your customers’ lifestyle, beliefs, values, and interests offer you an opportunity to better attract their attention and create more appealing content.

In what other ways can you automate customer segmentation?

The previously mentioned segmentation types are the most common and effective ones. However, there are many other options you can combine them with to achieve the best results:

It’s necessary to track lead behavior

Tracking your leads enables you to see how they react to your communication. That enables you to make conclusions about their interest in your brand as well as to make informed predictions about their future actions. Based on visitors’ behavior, you can calculate the lead score and use a discount pop-up or exit popup software at just the right time.

Segment your audience by sales funnel stage

Typically, the customer’s buying process will have several stages. These are introduction (product presentation, and depending on the product, a free trial), consideration, negotiation, and purchase. Of course, these stages can be slightly different depending on the type of products and services your brand offers.

Therefore, you can identify and segment all the funnels stages your customers are at and send messages and relevant content accordingly. What’s best, once a potential customer hits a certain milestone, you can react with the appropriate message. This enables you to customize your sales process. Not to mention that customers will find it simpler to navigate the purchasing process and complete purchases with ease and satisfaction.

Segment your customers by lifetime value

Additionally, you can divide your audience based on their value to you. Look at the factors such as expected revenue, relationship size, and longevity. This method enables you to achieve several valuable goals. Firstly, you’ll be able to identify important and loyal customers. By doing so, you can focus more on them and nurture these relationships better. For example, you can offer VIP status, reward loyalty, etc.

Then, you can also identify more reluctant customers and find a way to better engage them. This will show that you care and appreciate your customer base. Plus, you’ll be able to increase conversion rates!

Final thoughts on ways to automate customer segmentation

As you may see, segmentation is a valuable tool. If you learn to automate customer segmentation, you’ll be able to improve your company’s focus, nurture leads, and turn them into loyal customers. Of course, choose the options that best suit your brand and needs. Customers will appreciate your brand more and your business will grow and prosper.