April 19, 2024

Businesses have more information available today thanks to technological advances. For example, data can be used for marketing segmentation. Businesses can increase sales by analyzing data segmented into smaller groups.

What is data segmentation?

Each brand has a unique customer, and they all require different marketing approaches, even if they’re using the same service or product. It is impossible to design a campaign for every customer, especially when there are so many. This is where data segmentation comes in.

Data segmentation is a process that divides data about individuals into groups based on life choices, location, interests, and other parameters. Eighty percent of companies that have adopted this approach have experienced an increase in sales.

What are the main effects of market segmentation on your business?

Data is now a vital part of business, but with the expansion of technology, new types of data are emerging, including segmented data. Here are some of the most positive benefits that come from market segmentation.

  1. Increased opportunities. It cannot be easy to find new campaign ideas for a large client base. When the customer base is segmented, it opens up more possibilities for marketing campaigns.
  2. Segmented and targeted emails generate 58% of all revenue. Emails sent to the entire customer base won’t be interesting to everyone. However, emails sent to specific segments will have a higher chance of being relevant to that group.
  3. Revenue increase. Any customer communication should aim to sell products or services that will generate revenue for the company. Businesses can increase revenue by understanding the needs of their customers and communicating with them in a targeted manner.

How do marketers use data to drive success?

Segmenting customers is an important part of any marketing campaign. How data can improve your marketing campaigns

Create Personalized Experiences

It is ideal to create an individual approach for each customer, but as the client base grows, this becomes impossible and not worth the effort.

Markets can segment databases based on their specialties, for example, by hair type or location. Then, they should create campaigns that are specific to that segmented group. For example, separate campaigns based on state or hair type/color.

Increase Leads

A general email has little chance of catching your audience’s interest. You can then segment your customers based on their behavior and characteristics.

Use this information to send out your email newsletters. Research shows that segmented campaigns had 14,31% higher open rates and 101% more clicks than non-segmented campaigns.

Learn more about your business.

When businesses segment their data, they discover a wealth of information that can be used to improve their entire strategy. You can, for example, analyze data to find out that your most profitable customers are only a small group of segmented customers that you have never targeted. Markets can focus their attention on prospects who fall into that segment group with such data.

Find unique ways to connect with customers.

If you dig deeper, you will find that the group is segmented based on a similarity or trait they have in common. When creating new products or launching targeted campaigns, use information about these traits and interests. This will get their attention, as they will notice that you have mentioned something new and relevant to them.

How can I organize consumer behavior data for better segmentation?

Data segmentation is often tailored to the needs of a specific company, but there are some approaches that companies take to segment their data fundamentally:

  • Demographic Segmentation. With demographic segmentation, customers are divided into smaller groups according to their gender, age, and location. It is not enough to create a successful strategy; it is necessary to know who you are dealing with.
  • Segmentation by sales percentage. The best way to identify loyal customers is through the percentage of sales. If the data indicates that customers respond well to campaigns, then the team should spend more time promoting them.
  • Segmentation by RFM. is an advanced version of sales percentage segmentation. It segments customers based on not only the amount they spend but also how often they do it.
  • Segmentation based on occasion. Based on the products of your company, this is a popular segmentation method. You can segment customers based on their interest in holidays, events, or seasonal trends.
  • Benefit-based Segmentation. You can use benefit-based segments to highlight a specific benefit in an email. This approach identifies which customers want what results and benefits from a service or product.


To achieve effective customer segmentation, businesses must coordinate the goals and preferences for each segment.

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