Customer Data
When it comes to customer marketing, targeting is important. While mass targeting can bring results, thinking that everyone will be interested in a particular product or service you have maybe ineffective and time-consuming.
Based on your interactions with your customers, some data can show you how to go about targeting your customers by segmenting them into various groups based on similar characteristics and properties which can enable you to target them with unique, relevant content and personalized massage which can be a more effective marketing strategy instead of a one type marketing approach.
What is customer segmentation?
Just like the explanation above, customer segmentation is the process of sorting your customer base into groups, based on demographic, psychographic and behavioural characteristics. Using customer segmentation in marketing helps you target the right people with the right product and messaging.
Depending on your type of business or what you want to achieve, you can decide to implement a different customer segment approach. A small scale business that sells physical goods will have a different approach to a subscription business or software company.
With customer segmentation, you can offer discount sales to customers who have bought from your business in the past week or months just to get them to buy again or target customers whose credit cards are about to expire with personalized messaging to get them to update their credit card to avoid a failed payment when you are about to charge them at the end of the month.
Irrespective of your type of business, customer segmentation is a smart way to go with your marketing and targeting of customers. It provides enormous benefits for you like -
- Insight on customers behaviour —
The categorization of customers based on various groups provides you with insight into your customers. For example, a small business can easily identify customers with high purchasing power based on the amount they spend on your business or customers who frequently buy from you. It can also give you insight into how many times a particular customer purchased a product and within what time frame. This data can help you target those customers with other products of a similar price range, or engage those who frequently buy a particular product when they fail.
2. Enhances personalized messaging —
Personalizing your messages to customers leads to a better customer relationship and this can improve customer loyalty and engagement with your business.
Customer segmentation helps you send the right personalized message to a customer.
3. Opportunities for upselling and Cross-selling to customers —
With insight into your customer's buying behaviour and purchasing power, you can identify a customer segment that you can easily cross-sell or upsell other products to once they buy from you. This can help you increase sales and revenue for your business.
4. Increase customer retention —
There is always an opportunity for you to identify customers who have not bought from you for some time - week, month or year and target them with special offers, discounts or messages to re-engage them with your business and increase customer retention.
Segmentation doesn’t have to be difficult for businesses especially small businesses as the right software can help you to easily segment customers into relevant groups.
Bunce enables businesses to easily segment their customers into different groups and most importantly different churn probability groups - likely to churn, most likely to churn and less likely to churn helping you sent relevant messages to them.
