previous icon Back to blog
May 06, 2021
4 minutes read

Get Personal: How Smart Customer Segments Boost ROI

The best marketers are always looking for ways to sharpen their marketing efforts and reach more customers. Discover how an effective customer segmentation strategy can increase customer engagement and boost ROI.

I. What Is a Customer Segmentation Strategy?

Customer segmentation is the process of dividing your audience into groups based on common characteristics, behaviours, or interests. Segmenting your customer base allows you to send marketing messages designed to target customers based on their preferences. 

Sending personalised content that speaks to consumers’ unique interests and behaviours is proven to increase engagement.

Refining your market strategy over time is an excellent way to build a loyal customer base and find new and better ways of serving those customers for life. Your customer segmentation strategy can be a force multiplier that increases the ROI of your advertising, sales, and marketing campaigns. 

“Smart” customer segments take a segmentation strategy one step further. Using traditional market segmentation, customers get divided into broad demographic groups like age, gender, income, and education level. Smart segments drill down into more specific commonalities like pain points, spending patterns, and online behaviour.

II. Benefits of Customer Segmentation

Smart customer segmentation offers many advantages to savvy marketers. Smart customer segments enable you to:

  • Create personalised marketing campaigns and communications — at scale.
  • Gain a competitive advantage by making customers feel you know them better than your competitors do. 
  • Market one product or service to many kinds of customers. Trying to use one approach to appeal to everyone will result in appealing to no one.
  • Maximise up-selling and cross-selling opportunities.
  • Save time and money by automating workflows.
  • Improve customer service efforts by sending targeted updates on special promotions, product recalls, and offers.
  • Send marketing materials that reflect purchase history, reminding customers that you are in tune with their ever-changing interests.

III. 4 Types of Customer Segments

You can base customer segments on any rules and criteria you like. Identifying key commonalities helps divide customers into targetable groups. 

There are four main categories of customer segments you can use to build your mobile marketing strategy:

  1. Demographic
  2. Geographic
  3. Behavioural
  4. Psychographic

1. Demographic Customer Segments (Who?)

Demographics are one of the most commonly used marketing segments. Demographic factors include:

  • Gender
  • Age
  • Marital status (single, married, divorced)
  • Education level
  • Income
  • Life stage (retired, empty nester, student)

Examples of demographic segmenting:

  • Marketing social services to retirees.
  • Targeting college students for school loan assistance.
  • Marketing adults-only vacation destinations to couples without children. 

2. Geographic Customer Segments (Where?)

Geographic segments include grouping customers based on where they live:

  • Location (city, zip, country)
  • Location type (rural, suburban, urban)

Examples of geographic segmentation:

  • Using smart geographic segments to create a filter for people located in South Africa to ensure marketing campaigns are POPIA compliant.
  • Using geographic segments to promote climate-specific products.
  • Marketing a live event to people living within a certain radius of a venue.

3. Behavioural Customer Segments (How?)

eCommerce businesses often use behavioural segmentation to target people based on web pages they’ve visited or products they’ve purchased. You can create automated workflows that trigger when a contact completes a specific action, such as: 

  • Downloading a white paper
  • Signing up for a product demo 
  • Buying a product or service

Examples of behavioural segmenting:

  • Sending a follow-up questionnaire after a white paper download.
  • Sending purchase information after a customer requests a product demo.
  • Suggesting complimentary items or a coupon after a customer purchases an item.

4. Psychographic Customer Segments (Why?)

Psychographic traits are one of the most personal customer segments and include factors like:

  • Interests
  • Personality
  • Opinions

Examples of psychographic segmentation:

  • Marketing workshops or materials to hobby enthusiasts.
  • Promoting luxury cars or exclusive items to consumers in a high income bracket.

IV. How to Create Smart Customer Segments Today

When your customers know that you see them, understand them, and have the solution to their problems, they are more likely to keep coming back. 

What better way to assure customers how important they are to you than to send them customised, targeted communications that speak to what they care about? 

CM.com’s Customer Data Platform enables you to create effective customer segments by unifying data from all your online and offline sources. If you’ve ever had issues getting customer data from Point A to Point B, look no further. 

As a vital part of our Mobile Marketing Cloud, our Customer Data Platform connects multiple data sources into one unified customer profile, giving you real-time insights into your customer's behaviour. Create smart segments to group customers together by demographic, behavioural, or psychographic data to ensure your messages are being read and paid attention to. 

Learn more about CM.com’s Mobile Marketing Cloud and unlock your data today! Schedule a demo to see our platform in action or get started with our 14-day free trial.

Request a free demo of Mobile Marketing Cloud today!

Was this article interesting?
Share it!
CM.com
connects tens of thousands of companies with millions of consumers via their mobile phone each day. Behind the scenes, from our innovative platform, CM.com makes sure companies can use these millions of messages, phone calls and payments to become part of people’s lives.

Latest articles

engage-platform-effect-customer-service
May 10, 2024 • CM.com

Happy clients, happy agents: The "platform effect" in customer service

As a member of the customer service team, you stand on the front lines of customer interaction every day. In a world where customers demand quick and personalised service - long wait times, impersonal responses, or worse, incorrect answers, can quickly drive a customer away. Your goal, however, is to connect customers with your organisation and deliver the best answers and service possible. It’s incredibly satisfying to see a customer leave a conversation happier and eager to purchase your product. Your efforts can significantly enhance the customer experience, but you need the right tools to truly excel. Integrating these tools into a platform amplifies your capabilities and lets you experience the power of the platform effect.

payspace customer story
Oct 30, 2023 • Marketing

Enhance your Black Friday SMS Marketing with Pages

In recent years, SMS integration has played a pivotal role in transforming the Black Friday shopping experience. Both retailers and consumers have wholeheartedly embraced SMS as a powerful tool for communicating promotions, exclusive offers, and time-sensitive alerts.

blog-featured-leisure-travel-instagram-marketing-messages
Oct 23, 2023 • Instant Messaging

Introducing Instagram Marketing Messages for Leisure and Travel

The impact of social media on leisure and travel is undeniable. Platforms like Instagram and Facebook have transformed how people experience and plan their journeys. They serve as hubs for sharing photos, videos, travel tips, and reviews, essential tools for travellers worldwide.

The Software Debate: CPaaS vs Saas
Sep 06, 2023 • Messaging

The Software Debate: DIY, CPaaS, or SaaS?

Every business wants to communicate with its customers, whether for marketing, support, or operational purposes. But to do so, you'll need a way to get in touch with your customers- a communications platform. You can build software from scratch, integrate third-party software into your own systems, or implement new software all together. Are you still pondering the correct approach for your business? Then let's figure it below!

mejorar-experiencia-del-viajero-tecnologia
Aug 24, 2023 • Customer Data Platform

Customer Data Platforms: An Introductory Guide

As a marketer you have undoubtedly heard of the term Customer Data Platform. But what is it and what are you missing if you don't have one? In this guide you can read everything you need to know to bring all your online and offline customer data together and create marketing campaigns that give customers that wow feeling.

dutch-grand-prix-service
Jun 30, 2023 • CM.com

Fast Event Visitor Support at Formula 1 Heineken Dutch Grand Prix

When you go to any event, questions are likely to arise. How do you get there? Where can you find your tickets? And where will you stay? For some questions, you prefer instant support from the organisation. Swift and smooth. In this article, we’ll show how the Formula 1 Heineken Dutch Grand Prix will always help you in the best way possible.

dutch-grand-prix-marketing
Jun 30, 2023 • Marketing

How to Boost Fan Engagement - A Formula 1 Heineken Dutch Grand Prix Use Case

What’s so great about sports is that it connects all kinds of people. On the other hand, knowing no two sports fans are alike makes it challenging for sports organisations to address different fan segments. The organisation behind the Formula 1 Heineken Dutch Grand Prix acknowledged this challenge and didn’t just pack the CM.com Circuit Zandvoort with their best fans. Instead, they’ve managed to enhance their fan experience right at their first racing event in 35 years. What’s more, they keep improving fan engagement year on year. Curious to know how? We’ll share five insider tips on how the Dutch Grand Prix enhanced its fan engagement before, during, and after the race.

instagram-marketing-messages-feature1
May 22, 2023 • Conversational Commerce

Introducing Instagram Marketing Messages

In today's digital landscape, customer engagement is increasingly shifting towards social media platforms. This shift is well-founded, as personalised messaging on the messaging apps preferred by your customers can greatly enhance your brand awareness. With the introduction of Instagram's new Marketing Messages feature, you now have a powerful marketing tool at your disposal to increase your visibility where your customers are and re-engage them effectively, ultimately boosting your conversion rates.

SMS Marketing Use Cases for B2B
Apr 29, 2023 • SMS

B2B Text Messaging Use Cases to Build Your Business

You’ve heard about SMS marketing campaigns for consumers, but what about SMS marketing for B2B? B2B text messaging is an effective way to communicate with your business clientele, enabling you to build relationships with decision-makers and offer information that helps them make buying decisions.

Is this region a better fit for you?
Go
close icon