Customer segmentation is an important practice for businesses, especially for formulating a marketing strategy. It supports the notion that not all customers are the same, and hence, you need to group them based on similar characteristics. To do customer segments effectively, keep on reading and learn from the tips we’ll share.

1. Demographics

Demographic segmentation is one of the easiest ways to group your customers. You will use factors like age, gender, location, and language, among other demographic factors. This is under the assertion that marketing materials that appeal to an 18-year old will not have the same level of effectiveness as a 60-year old. Marketing for men and women can also be different, especially when framing messages.

2. Behaviors

You can also segment your customers based on the similarities in the behaviors that they are exhibiting. Action speaks louder than words, and hence, the behaviors of customers can be used to group them. For instance, you can have a group of brand advocates, which include people who constantly likes your post and leaves a comment. You can also use their usage behaviors.

3. Lifestyle

Psychographic factors or lifestyle will also be a good basis for customer segmentation. Focus groups, interviews, and surveys are some of the best ways to obtain information about your customers’ lifestyle. For example, there are customers living an eco-conscious lifestyle who prefer green products over their counterparts.

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4. Benefit Groups

This process of segmenting customers will consider the way the customers see your products and services to be beneficial to them. The more benefits that you can deliver to the customer, the better will be the response of the customer. In most cases, there are two main groups – those who prioritize quality and those who emphasize cost. Some customers also emphasize specific features of a product, such as if it is cruelty-free, non-GMO, or other things that will be indicative of the product’s benefits.

5. Social Data

Social segmentation provides another effective way of grouping your customers. You can easily obtain their social data based on their interests, friends or followers, accounts being followed, relationship status, and education, among others. Social data can also be indicative of the lifestyle of your customers, making it easier to understand their needs and motivations.

6. Value

Know how valuable your customers are to the business. One of the worst things that you can do is to waste your money on low-value customers. Know the dollar value of your customers, and from here, you can decide who you will be targeting. Focus on high-value customers to make the most out of your marketing budget.

7. Devices

You can also segment customers based on the devices that they are using. For instance, those who are using smartphones can receive push notifications or text messages about your latest products. These marketing materials are not suitable for those who use computers. Need help in understanding and segmenting your customers? Make sure to check out Lytics and find out how you can make smarter customer segments.

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