These days, 77% of ROI comes from targeted and triggered campaigns. This number is the result of many effective customer segmentation examples, which have paved the way for these successful campaigns. Each way of classifying your audience goes hand in hand with a specific goal and demand.
Generally speaking, marketers often rely on 4 main characteristics to segment their customers, which are based on:
Customer segmentation is indeed important to your business. Given the huge number of online shoppers, most of the merchants have integrated automation platforms to get the work done quicker and more efficiently.
1. Demographic segmentation
These are messages tailored to customers’ demographic information, such as:
- Relationship status
- Annual Income
This kind of information can be easily gathered when a customer places an order on your website. The advertisement below is targeted at parents whose children are about to start a new school year. During this time, the kids will need new clothes, bags, and stationery, thereby increasing the parents’ spend.
2. Geographic segmentation
This simple type of segmentation categorizes your customers based solely on their current location, such as:
- ZIP code
- Radius around a certain location
- Urban or rural
One brand that has applied this extremely successfully is the Swedish retailer IKEA. At the beginning of winter when the weather was becoming colder, they placed a huge billboard in Houston with a very creative slogan to market their sheets. This way, they managed to grab people’s attention and triggered their demands without shouting out about the product.
3. Psychological segmentation
Psychological information is slightly more complicated to collect than demographics or geographics. You need to perform in-depth analysis to understand your customers’ thinking, fear, and motivations. This data includes:
- Social status
There are a lot of examples of psychological customer segmentation. In this video, Traveloka taps into the traditional values of Chinese mothers, specifically their hard-workings. The main goal is to evoke the love of children for their mothers, hence raising the brand involvement and likelihood.
4. Behavioral segmentation
This type of customer segmentation focuses on how your customers act in the online environment. For example:
- One-time purchasers
- New customers
- Loyal customers
- Customers who have just abandoned their shopping cart, etc
Their engagement with platforms other than your website might also signal how they will interact with your brand. To track this data, you’ll need to install software such as cookies and have your customers’ consent to collect their information.
This workflow allows merchants to take 2 actions:
- Tag platinum customers who have spent more than $10.000 on their store for special care program
- Send a personalized thank-you message to interact with each individual customer
In this example, Warby Parker’s customer receives a thank-you email right after the purchase, ensuring a constant engagement with the brand. This also helps the brand express its gratitude towards the customer’s contribution to its development.
Automate your segmentation for better results
These examples of customer segmentation might look easy to conduct. However, it takes quite a lot of time and effort to master this tactic. Without an assistant tool, you might end up going around with a bunch of information. Integrate Atom8 to your store today and have the app do the work for you.
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