Why Segmentation Is Crucial To Personalization
In the not so near past, marketing teams would send a canned campaign to all of their customers, irrespective. They paid little attention to the fact that each customer has different needs, wants and preferences. However, as research on Marketing and subsequently technology that accompanies it evolved, organizations and more specifically their marketing teams began to see the unlimited possibilities in categorizing their customers based on certain common characteristics of each category. Even if this was rudimentary, this showed real results in terms of financial profit and increased brand loyalty.
In recent times, technology and specifically marketing technology has made it possible for brands to target in a far more personalized manner, thereby reaching out to different customers based on their unique attributes. This has resulted in higher profitability and greater customer satisfaction because it is being observed that when a particular user/customer (or a niche group of like-minded ones) receives a tailored, personalized and a relevant offer, it is likelier that the message will resonate with them.
With the current deluge of choices and options available to customers, they have a fraction of the patience that they had earlier and therefore, it’s of tremendous importance that a brand customizes its messaging to reach out in the most personalized manner that is not only relevant but also appealing to every individual customer.
Importantly, it is to be understood here that the core of the aforementioned personalized marketing is: accurate grouping or segmentation of your customers.
Enter Market Segmentation
Market Segmentation in its broadest sense has been described as segregating a market into small bodies of customers/users in which each user has a common characteristic such as a need or a want. It involves building up or breaking down of potential buyers into groups called market segments. By doing so, the marketers will have a better understanding of their target audience and thereby make their marketing more effective.
Types of Segmentation
1. Geographic Segmentation: This kind of segmentation is based on geographical commonalities.
2. Demographic segmentation: This kind of segmentation is based on demographic divides.
3. Income segmentation: This kind of segmentation is based on varying income levels.
4. Behavioural segmentation: This kind of segmentation is based on common behavioural patterns.
5. Psychographic segmentation: This kind of segmentation is based on different personality traits, values, attitudes, interests, and lifestyles.
Benefits of Market Segmentation
While the real benefits of market segmentation have been proven across all industry verticals and documented repeatedly, it deserves mention in any article relating to it.
The top ten benefits of market segmentation are as follows (Source):
1. Determining market opportunities.
2. Adjustments in marketing appeals.
3. Developing marketing programmes.
4. Designing a product.
5. Media selection.
6. Timing of marketing efforts.
7. Efficient use of resources.
8. Better service to customers.
9. Helps in fixing prices.
10. Assist in distribution strategies.
Segmentation with Gamooga
With Gamooga’s intuitive segmentation capabilities, the complete market may be divided into smaller subsets comprising of consumers with similar taste, demand, preference and all the other segmentation types as listed above. In our experience with various enterprise and SMB customers, it has been seen that individuals from the same segment have repeatedly responded in a similar way to market trends. Identifying segments and contextual messaging has consistently delivered a great customer experience.
Gamooga offers powerful analytics and segmentation capabilities which enable you to analyze your customer data and most importantly, to intelligently deliver personalized product and service offers to customer groups based on their lifestyle.
Using Gamooga, you can analyze, create, design and roll out segment-specific marketing campaigns across channels, including Email, Website, Mobile, Social, Display, Kiosks, etc. By targeting customer segments with personalized and orchestrated messaging, you will greatly increase the likelihood of generating more revenue and driving real value.
Contact us today to know more about this!