What is Customer Segmentation and 3 Smart Ways to Use It for Business Growth

We’ve written recently about identifying your ideal customer. Now, let’s define what is customer segmentation and how you can use this technique to make your marketing more effective. One of the challenges in marketing to a large customer base is targeting individual prospects in hopes of making a connection and a sale. The problem lies specifically in speaking a language that individual customers can understand.
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We’ve written recently about identifying your ideal customer. Now, let’s define what is customer segmentation and how you can use this technique to make your marketing more effective. One of the challenges in marketing to a large customer base is targeting individual prospects in hopes of making a connection and a sale. The problem lies specifically in speaking a language that individual customers can understand. 

Customer bases, while similar, are holistically different. Some people may have different motivations for buying a product, and others may be older or younger, which can affect their purchasing decision. 

As you can see, sending mass email blasts to your entire customer base isn’t an effective way to business. Instead, you can engage in what is known as customer segmentation. 

Below, you’ll learn what is customer segmentation and how to use it. 

What is Customer Segmentation?

Customer segmentation is simply the process of placing individual prospects in various classifications, such as their demographics, motivations, and other categories. You can create different customer segments based on your industry and style of business. 

For example, if you’re selling to other businesses, you can create customer segments for a wide variety of factors, such as demographics, number of employees, industries, etc. Basically, customer segments help to find shared characteristics between customers. 

They can also point out ways that your customers are different. When you create customer segments, you can develop custom marketing messages that can hit their mark more effectively. 

Why is Customer Segmentation Important?

Again, there are various reasons why customer segmentation is important. One reason why customer segmentation is important is because marketing messages are sensitive. A common mistake business owners make it curating an email list and sending the same message to every customer. 

The problem is that every customer may not be ready to purchase. Some may have different motivations for purchasing a product, and others may have already been reached out to by your sales team. 

In this case, you could end up sending an irrelevant email message that can alienate your customer base. 

When you create customer segments, you can improve the performance of your marketing messages and ultimately produce sales funnels that will work wonders for your business. 

How to Use Customer Segments: 3 Easy Steps

Below, you’ll learn some easy ways to begin using customer segments for your business and marketing strategy.

Step #1: Understand Your Target Audience

what is customer segmentation audience

The first step in creating customer segments is understanding your target audience. When you understand the demographics, motivations, and other details of your standard customer, it’ll be easier to create a funnel

In a funnel, you can separate customers based on who just reached out to your business, prospects who have shown interest, and people on the verge of converting soon. 

Step #2: Create Separate Messages

what is customer segmentation messaging

The next phase in creating effective customer segments is to also produce separate messages for each customer group. For example, you would send a welcome email to people who have just signed up for your email list. 

You could also send a “come back” message to people who have been inactive in your email list for a while. Sending separate messages to various customer groups is always an effective strategy for improving your conversion rate. 

Step #3: Perform Tests

what is customer segmentation testing

The last thing to remember when creating a customer segment is to perform an A/B test to make sure that your messages are hitting home with your target audience. This will allow you to make alterations to your messages and funnel if necessary. 

What is customer segmentation in web design?

Creating a fully-functional website is the first step to spearheading any successful marketing campaign. At B. McGuire Designs, we center web design around the idea customer and help you develop content and experiences that address different customer segments. Click here to request a proposal when you’re ready to take your web marketing to the next level.

At B. McGuire Designs, we use Zoho Marketing Hub to automate journeys for different buyer segments. 

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