Add New Customers Who Look Like Your Existing Ones
While segmentation can help you find new audiences for your products or services, it can also help you reach prospects who look like your best existing customers (who we like to call your whales). Take the Royal Canadian Mint, for example, which mints and distributes Canada’s coins but also creates and sells collectible coins
In looking for new customers for this side of its business, Mint turned to segmentation. This case study shows how the Royal Canadian Mint took all of its customer data and distilled it down to create a persona that represented their highest-potential clients—those people who had purchased from them in recent years and had the capacity to spend even more.
Armed with that information, they tweaked their entire marketing campaign and created online and print messaging that spoke directly to that high-potential segment. They added 140,000 of these types of customers in a single, targeted campaign.
Reduces Marketing Cost
Another reason why companies should apply Customer segmentation features is to save the marketing cost. Customer segmentation gives service providers an opportunity to communicate with each client personally. For example, one can send a customized deal to a specific group that likes to avail of any particular service from your company. Else, a trader can introduce coupons for a particular segment. The broadcasting of this deal/coupon to a dedicated group will grab the attention of all the clients listed in this group. This action will encourage the clients to avail fair deals at the best market price. This will result in high earnings for the company. This gesture will make the clients feel touched and recognized by the service provider in the market.
Drive Impulse Buys
While a great many consumers will write off a business entirely if they don’t send them personalized messages, the benefit of personalization goes beyond simply keeping prospects on the hook or retaining customers. Personalized messages also play a major role in impulse buys. Forty-nine percent of consumers said they bought something on impulse because it was presented to them with a personalized message.
When you convince your customers that you know them better than they know themselves, you eliminate some of the hemming-and-hawing in their purchase decision process. Instead, they’re comfortable jumping right to the sale.
Stay Ahead in Market
Competitors are the biggest threat to any business. Customer segmentation features filter the database and give a clear picture of what the current market trends are and what will be the user requirements in the future. Apart from knowing this, the business owners also get reactions from the users that allows the companies to fix issues in the current system. This is the major advantage of Customer segregation, that it ensures everything is perfect. Apply this feature and get ready to lead the market. Hence, features like Customer segmentation are absolutely a must for businesses.