Benefits Of Segmenting Your Customers

Easily segmenting your leads into lists automatically creates detailed segments of leads based on specific properties and actions, or manually add leads to a segment to create lists for more personalized marketing. Monitor the growth and activity of your lists with Jacktrade’s list analytics.

Campaign targets can be defined for target segmentation and you can run campaigns on a specific set of segmented customers based on specific criteria.



There are several benefits of implementing customer segmentation including informing marketing strategy, promotional strategy, product development, budget management, and delivering relevant content to your customers or prospective customers. Let’s look at each of the benefits in a bit more depth.


Marketing Strategy

Customer segmentation can help inform your overall marketing strategy and messaging. As you learn the attributes of your best customers, how they are alike, and what is important to them, you can leverage that information in messaging, creative development, and channel selection.


Promotion Strategy

An overall promotion strategy (i.e., our customers are deal seekers, therefore we should offer frequent deals) for sending promotions for specific segments can be made better with information from a broad customer segmentation scheme. You may find that certain cohorts of customers don’t require discounts when you use certain messaging, thereby saving you from having to offer a discount for those groups at all.


Budget Efficiency

Most companies do not have unlimited marketing budgets, so being precise about how and where you spend is important. You could, as an example, target similar customers to segments of high value or those most likely to convert to get the most return from your marketing investment.


Product Development

The more customers you acquire, the more you learn about what is important to them, what features they want, and which customers are the most valuable. Your company can use these insights to prioritize product features that either appeal to the most customers, those categorized as high-value customers, or other characteristics that make sense for your industry.


Customers Demand Relevance

Whether it’s D2C, B2B, Millennials, or GenZ; it seems that there is a study or resource on every possible group of customers stating that relevant content is important to them. These customer segments are more likely to respond, buy, and respect the brand and feel connected if provided with relevant content. By performing some level of segmentation, you can ensure that the messages you are delivering via email, on-site, digital ads, or other methods are targeted and relevant to the individual seeing them. It is almost counter-intuitive to the hyper-vigilance of data privacy to use so many pieces of data in this way, but with so many marketing messages coming at people today, no one has time for something that isn’t relevant to them.


Increases Clarity

The first and foremost use of market segmentation is to develop clarity. After mining and cleansing your data, all you have is the most accurate and relevant information about the customers. Once you have the data ready, you can use this information to put the customers, who share particular business-relevant attributes, together in a group.

The primary objective of segmentation is to remove the unimportant clutter of information and keep what is useful and actionable on your desk.


Develops Consumer Insights

If “Know thy customers” has always been an oft-quoted mantra in marketing, it has become even more loaded with meanings in the digital era. Today, your customers are just a click away, expecting you to frequently pat them on their backs.

With clearly defined customer segmentation and contact profiling, you can know who your customers are, where they are, and what they need better.


Improves Customer Engagement & Brand Loyalty

Customer engagement is one of the most important strategies to identify and, sometimes, even influence the customers’ needs and interests. Customer behavior data collected from social network sites, mass media, discussion platforms, and purchasing history helps businesses develop a psychographic segmentation of the customers and target marketing and ad campaigns to address their needs.

Engaging customers with communications and motivational offers has proved to be the most effective way of improving brand loyalty and customer retention in the age of e-business.


Streamlines Mass Customization

Mass customization is a process of providing specially tailored products or services to fit the specific needs of a large number of customers in specific segments. The growing amount of clickstream and customer behavior data has helped businesses to apply more accurate customer segmentation, which has made the practice of mass customization more effective.

Mass customization significantly improves the level of customer satisfaction by helping your company to offer value-added and custom-tailored services to a large segment of customers.


Optimizes Cost-efficiency & Resource Management

Market segmentation is an important tool for developing business intelligence and maintaining a competitive advantage. It gives a deeper insight into the market helps business firms to identify the segments of customers with greater profits and allows them to carry out more targeted micromarketing.

All the top-notch companies make the best use of their data to implement precisely defined market segmentation in their marketing and service delivery.


Grows Niches Marketing Capabilities

Data plays a mission-critical role in discovering the hidden dynamics of the market and in developing newer insights and marketing strategies. Using the market/customer data to systematically segment the market can help your business to discover the potential niche markets where you can maintain your lead and domination with rapid customer conversion and market expansion.

The bowling pin strategy applied in niche marketing has helped many online businesses to grow rapidly. You can take Amazon as an example.


Promotes the Application of Business Data

These days, all businesses, regardless of their size and scale, generate business data and have access to data across industries. Companies today have the advantage of using both the a priori and post hoc methods in market segmentation. Moreover, you can also use data visualization and cluster analysis techniques to improve the process of customer segmentation.


Enhances Reliable Assessment

Segmentation of the big market of customers into small chunks not only makes customer service and marketing efforts more manageable, but also makes it easier for you to measure the success of the segment-specific projects, policies, and strategies..

The growing access to multi-platform real-time data has helped businesses to study and assess their market penetration and performance and reorient their marketing policies or re-segment the targeted customers.


Maintains Freshness

It would be misleading to presume that customers who fall into a group or subgroup of segmentation stay there forever. In this digital era, customers are bombarded with information, which continuously influences their preferences and priorities, increasing their mobility across the segments.

Data-driven market segmentation heavily relies on the accuracy of customer profiles with new information regularly. It helps your business to deal with your customers with up-to-date information.