Every Customer Base is Diverse, Address That Diversity.

Although you refer to the receivers of your products and services as ‘customers’, they are ordinary people just like you and I. Wherever people are, diversity is there, and so is your customer base which is made up of different people. In this article, you will read (if you are not bored already 😅) why you have to focus more on the diversity inherent in any customer base and what has ‘customer segmentation’ got to do with that.

What is ”Customer Segmentation”?

‘Customer Segmentation’, as the name suggests, is the grouping of your customers and potential customers with shared attributes, using collected customer data so that customer communication can be customized to convey only the relevant information to the relevant party.

Why Focus on Customer Segmentation? 💡

You are so determined to promote your e-commerce business and attract more prospects that you keep on emailing and texting them promotional content to drive prospects and customers to your website. But your hard work will go to waste if they do not visit your website through clicking on your email and SMS links. However, the question is, why wouldn’t they visit your website by responding to your emails and SMS?😰

So I stopped by this restaurant which promoted its ‘mushroom soup’ because I love mushrooms😋🍄. And when I started eating the soup, I only found around 2 or 3 pieces of mushroom among hundreds of other ingredients like (I honestly don’t remember) say carrot, potato and whatnots. So did I visit that restaurant again? Never! 😒

It is the same for your ignored 🔇 (oops!) emails and SMS.

“Imagine a customer who buys a dress today receiving promotional emails about kitchen utensils tomorrow, and garden equipment the day after. Why should she/he spend one minute on reading something not pertinent to them?”

Getting ignored hurts I know! 😭 That is why the more you have to study your accumulated customer data and utilize them to aggregate your valuable customers and prospects. 💪

Attributes Commonly Used in Customer Segmentation

You can cluster you customers using several shared attributes.

Demographic Attributes

👫 Gender

👶👧👴 Age

👲👳 Religion

🗻🗼🗽 Location

Recency of Purchase

🐝Active buyers

🐚Buyers who have purchased from you, but not recently (last purchase — 6 months ago)

🐾Buyers who have not purchased anything for a long time (last purchase — 12 months ago)

Frequency of Engagement in Marketing

  • Potential customers who click on your emails, ads, and visit your site often, but have not purchased anything yet 📳
  • Potential customers who have responded to your emails or/and ads and visited the site only a fewer times 📴

Product Categories

  • Products most purchased by a customer
  • Products most viewed by a customer/potential customer

What Benefits Will Customer Segmentation Bring to You?

  • Higher conversion rates — The more you address your customer’s needs, the more they tend to purchase from you.💸
  • Customer retention — By retaining your existing customers through ensuring that their needs are met, will drive long-term revenue (compared to the high cost of attracting prospects).
  • Increased profit — As you are able to focus on niche customer populations, the products in demand by the particular niche market are delivered to them, increasing product purchase and thus profit.
  • Better customer satisfaction — Segmentation facilitates identifying less satisfied customers groups so that you can improve your service towards them.

Take for an example that (probably annoyed) customer who was forced into cooking and gardening just because s/he bought a dress. If you analyze the data of that particular customer and finds that that customer is a girl who has browsed through a lot of knee-length dresses during the past week, you can happily send her a promotional email about new arrivals on knee-length dresses. And I’m sure that she will not hesitate a bit to see the latest dresses!👚

😊 I’m certain that by now you must be feeling the necessity to focus on customer segmentation. Among the many tools available for customer segmentation, the ShoutOUT CRM platform proves to generate the best results with its unique features such as automatic updating of data as your customer base expands, and without stopping there, ShoutOUT facilitates sending unique messages to target customer segment, saving your time and ensuring increased responses. 😉

If you were wondering why your emails and SMS were never able to generate purchases, it’s time you improved your customer segmentation process with ShoutOUT.🎉

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