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Customer Segmentation

What is Customer Segmentation?

Customer segmentation is the process of dividing your customers into groups that define them by certain behaviors and interests. By knowing each segment of customers, you can decide how to customize the suitable value for each group, and thus how that reflects on your revenue.  

Customer Segmentation Factors: 

To know your customers, we should study them very well, and that depends on your guidance for sure. We can have a tea meeting to discuss some factors that show your customers personalities, like:
 

Demographic factors:  

That means their non-character traits like: 

  • Age 
  • Gender 
  • Ethnicity 
  • Location 
  • Level of education 
  • Religion 
  • Occupation and income 

By defining these traits, we begin to know who are your customers, and draw the first portraits for each, and put each customer in the right group.  

Psychological factors: 

The demographic factors reflect mostly the main and outside traits, however psychological factors, reflect your customer’s inner feelings and interests. Obviously, this type adds a deeper view that focuses on them and puts in our hands their clues, so we can help you to reach them effectively. And they are: 

  • Personality traits 
  • Hobbies 
  • Life goals 
  • Values 
  • Beliefs 
  • Lifestyles 

Knowing psychological factors is harder than demographic ones; as it needs more research and testing, till we reach a satisfying and clear image for your customers.  

Online Behaviors: 

As psychological factors, online behavior reflects the attitude of your customers, it shows their activities, interests, mindset, and what they love to buy, it includes: 

  • Purchasing habits 
  • Browsing habits 
  • Interactions with the brand 
  • Loyalty to your brand 

Collecting data online gives you the most accurate view of the relation between your customers and your product, and hence develop your service accordingly.  

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Importance of Customer segmentation: 

After knowing every group of customers, you will be aware of many strong points that help you in your digital marketing strategy, like: 

  • You have an accurate well-planned Marketing strategy, based on a clear target audience. 
  • Get higher brand awareness and engagement with your customers. 
  • Develop suitable creative content for your customers according to their position. 
  • Give you guidance to develop your product and reduce negative issues.  
  • Help you to find the best advantages among your competitors.  
  • Facilitate grouping your emailing list for Email Marketing 

So it is important to know Who is your customer, and how to categorize them to offer the best service and get the ultimate success.