• Areeya Lila CEO @ViewN

Boost marketing performance with data-driven customer segmentation

Updated: Mar 26

Segments you can drive from eCommerce data - not just out-of-the-box rule-based ones.


Customers play a crucial role in the success of a brand. Maintaining a customer base is extremely important if you want to earn profits. However, today, particularly in the eCommerce industry, hundreds of alternatives are available for the same product. This makes it extremely difficult to make your product stand out unless you resonate with your target audience.



Over the past years, market segmentation has helped numerous businesses grow. Some of the leading companies today, however, have improved their approach to attracting customers. Data-driven customer segmentation helps improve your marketing campaigns and optimize your content according to the customer’s preferences, attitudes, and past behaviors. It allows for unique opportunities that would not have been noticed otherwise.


Running a successful business majorly depends on your marketing strategies and how you target your customers. You need to take thought-out steps to make sure you retain a loyal customer base. However, to achieve this, you should be up to date with the market and its changing preferences.


How data-driven customer segmentation can improve performance.


Customers play a crucial role in the success of a brand. Maintaining a customer base is extremely important if you want to earn profits. However, particularly in the e-commerce industry, there are hundreds of alternatives available for the same product. What makes it different is how you sell it. This can make it difficult to make your product stand out without knowing what resonates with your customers.


Over the past years, market segmentation has helped numerous businesses grow. Some of the leading companies today are still using this approach to attract customers. Data-driven customer segmentation, especially with customer data platform technology, can improve your marketing campaigns and optimize your content according to the customer’s preferences. It allows for unique opportunities that would not have been noticed otherwise.


In the European retail space, customer segmentation techniques garnered three to five percent increase in returns on promoted sales.

- McKinsey


Running a successful business majorly depends on your marketing strategies and how you target your customers. You need to take thought-out steps to make sure you retain a loyal customer base. However, to achieve this, you should be up to date with the market and its changing preferences.


Advantages of data-driven customer segmentation


Data-driven segmentation allows you to divide your customers based on different variables, including preferences, priorities, and desires. Data about their activities and purchases can give you key insights into approaching them. Different people have different needs. For instance, advertising a shampoo for curly hair to a person with straight hair.


Different people have different needs. For instance, advertising a shampoo for curly hair to a person with straight hair would generate no results. Data-driven segmentation allows you to cluster your audience and target them appropriately. It also helps you develop a personal relationship with each group, improving customer loyalty and trust.


Through segmentation, you can target your customers differently. It allows you to devise plans and strategies specifically for a group – that has a higher chance of improving your business performance. Based on the preferences of each cluster, you can offer promotions and exclusive offers.


Further, data segmentation also helps you understand the overall dynamics of the market. It gives you an idea of the type of product your customers are interested in. You get to “know” your audience and customize your campaigns to improve engagement and generate leads. Further, mass customizations can also improve customer satisfaction levels by providing them tailored services.


Businesses that utilize customer segmentation are 2.3 times more likely to research the motivations of their buyers and 1.6 times more likely to understand the fears and challenges their buyers face.

- Cintell


The process helps in optimizing spend as well. By getting insights, you can save thousands of dollars from running the wrong campaigns. That is, you will not have to run advertisements for people who will not engage with your brand. Data segmentation can also keep you focused and goal-oriented. Through analytics and engagement scores, you can know what products would perform well in the market. Therefore, it improves your investments by helping you allocate resources to processes that would yield better results.


Data-driven segmentation is currently employed by several companies worldwide. And if you aren't doing it, your sales can be left behind. It plays a major role in retaining customers through look-alikes and improving profitability, improving your product's perceived value. It can also improve the effectiveness of your business processes and help you grow.




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