8 Types of Customer Segmentation You Can Do To Target Your Customers Better

Did you know that 77% of ROI from email marketing came from segmented campaigns in the year 2015?

The importance of customer segmentation (list segmentation) can never be stressed enough. You can have wonderful email marketing campaigns, but if they are not targeted to a certain section of your customer base, then they lose their value.

Customer segmentation allows you to send creative and effective email marketing campaigns.

It’s all about being innovative with your email marketing campaigns. Customer segmentation allows you to launch creative and effective campaigns that target a very specific set of customers in your customer base.

It all boils down to what information you are able to gather from your leads and how you can effectively convert this information into opportunities to serve your customers better.

There are a lot of different data sets that need to work together in order to create the best email marketing campaign for your customers.

Here are 8 types of customer segmentation you can do that will allow you to understand your customers better and create more personalised email campaigns. Although some of them can work well on their own, you can combine different types of data and make even better campaigns.

Type 1: Customer Segmentation Based on Geographical Location

Dividing up your contact list based on where your customers or leads are located geographically is very useful in many ways.

Segment your contact list based on geolocation tracking.

If you are a local business, it would be helpful if you knew where your customer base lives so that you can send specialised offers to those who can walk in to your store.

If you are a multinational business, you could send out different offers to people living in different countries. That way your discounts or offers will be more personal to them and they would be more inclined to purchase from you.

Type 2: Based on Age

These days, everybody has access to the internet. A lot of people sign up to newsletters randomly at times, so having people on your list that do not fit your ideal customer profile could hurt your email marketing metrics.

If you are targeting a target audience who is of a particular age, then it would help to write emails that are specifically meant for them and that resonate with them.

Type 3: Based on Gender

If your products and services are directed towards both genders, it would be helpful to target your emails for each section.

Target your email campaigns based on audeince from different gender segments.

For instance, if you own an ecommerce site, you could put in images and product recommendations that are more appealing to a female audience when you send your email campaigns to them.

Type 4: Based on Customer Profiles

Target customer profiling is a very effective way to learn more about your target customers and market your products and services to them effectively.

What you create a target customer profile for each type of customer you have, you will be able to segment them better and sed them more personalised email campaigns.

Find out what the pain points of each target customer profile is. What are they struggling with and what do they use your products and services for?

Sending the right emails to the right customer profiles will help improve your click through rates and build trust with your customers.

Type 5: Based on Type of Organisation

If you are a B2B business, you need to see what types of organisations are interested in your products or services.

For B2B business, target orgainisations that are interested in your services.

Are most of your email list subscribers non-profit companies? Or are they small businesses and startups? Segregate your list according to which type of organisation they are so that you can customise your offers and email copy to each type of organisation.

Type 6: Based on Purchase History

The information you have on your customer’s past purchases can be used very strategically to plan out your email campaigns.

Customer segmentation based on purchase history gives you an insight on what products your customers are interested in, and you can send them targeted emails regarding similar products that they would like.

Information of your customers' purchase history can be very useful in planning your email marketing campaigns.

Not only will this strategy improve your open and click through rates, as well as your sales, but it will also show your customers that you truly care about their interests. It will also help your customers discover new products they might like, without the trouble of having to go through your products list to find them for themselves.

Type 7: Based on Interests

Another significant way you can segment your customer base is by looking at their interests. You can use forms, call-to-actions, lead magnets, or even blog posts to find out this information.

Once you have separated your customers into various segments, you can then only send relevant information that they would be interested in.

Always remember that you are competing with tons of other email marketing campaigns from different companies on an everyday basis. When your customer’s inbox is drowning in emails, they would be more likely to only click those emails that spark their interest.

Figuring out what your customers like and what they want to learn more about will help you to target them and serve them better.

Type 8: Based on Loyalty

You will notice that a few of your customers are always purchasing something from your business or are referring other people or businesses to yours (through referral programs, if you have them).

Send special rewards campaign to your special segmented loyal customer.

Consider them to be you biggest brand ambassadors and treat them as such. Segregating you most loyal customers will allow you to target them through special email campaigns.

Send them special loyalty coupons or offers that they would enjoy. Customer loyalty is very crucial for your business, so you need to reward this kind of loyalty.

Conclusion

These are just a few ways you can do customer segmentation for your ist. We hope that this list inspires you to figure out better and more useful ways in which you can segment and target your customer base.

Customer segmentation will greatly improve the quality of your campaigns and keep each member on your email list happy. Satisfying your customers will in turn lead to increased interaction and loyalty, which will directly improve your customer retention and sales.