{"id":49011,"date":"2020-11-19T08:55:34","date_gmt":"2020-11-19T13:55:34","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=49011"},"modified":"2020-11-19T21:58:53","modified_gmt":"2020-11-20T02:58:53","slug":"the-ultimate-guide-to-customer-segmentation","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/the-ultimate-guide-to-customer-segmentation\/","title":{"rendered":"The Ultimate Guide to Customer Segmentation\u00a0"},"content":{"rendered":"<p aria-level=\"2\">While customer experience, the customer journey, and customer touchpoints are all critical data collection opportunities, the way you analyze your data can make all the difference in converting stats to insights. How are you segmenting your customer data?<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p aria-level=\"2\"><span data-contrast=\"none\">What is customer segmentation? More importantly, w<\/span><span data-contrast=\"none\">hy is customer segmentation important?\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>Answers:\u00a0<\/strong><\/p>\n<p>Successful marketing in a competitive environment depends on pinpoint specialization and delivering an unsurpassed customer experience (CX). You can&#8217;t do that by being a jack of all trades.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"%1.\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"19\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">People in the wide world may look alike, but they&#8217;re as different as chalk and cheese. Differentials depend on things like where one lives, religious affiliations, ages, education, language, cultures, community influences, and more. These factors divide the population into sliver-like segments with distinct, groundbreaking characteristics.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"19\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\">Customer segmentation, against this landscape, may look daunting. However, it&#8217;s the &#8220;open sesame&#8221; to differentiated marketing. It&#8217;s a fact that our neighborhoods, upbringing, affiliations, aspiration groups, social connections create behavior commonality.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"div-minispacer\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49022\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-109452178-300x225.jpg\" alt=\"customer segmentation is like cutting a cake\" width=\"700\" height=\"525\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-109452178-300x225.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-109452178-768x576.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-109452178-1024x767.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-109452178-50x37.jpg 50w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-109452178.jpg 2000w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/div>\n<div class=\"div-spacer\"><\/div>\n<h2 aria-level=\"3\"><b><span data-contrast=\"none\">So, what is customer segmentation?<\/span><\/b><\/h2>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">Imagine the big wide world as a cake and geographic segmentation as a knife suitable for cutting it up in one way. It\u2019s one of many customized knives that dice and slice the cake in all kinds of interesting patterns. The trick is to have:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">All the knives available to you<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The skills to use them effectively<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The creativity to cut the cake up in ways that suit your brand the best\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">For more details on this critical concept, take a closer look at\u00a0<\/span><a href=\"https:\/\/www.sogolytics.com\/blog\/market-segmentation-a-critical-component-of-company-strategy-and-roi-success\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">marketing segmentation<\/span><\/a><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Customer Segmentation Models<\/span><\/h2>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">Customer segmentation boils down to how the user of the &#8220;knives&#8221; (see above) sees the cake and, like a surgeon, adeptly carves it up. Giving each &#8220;knife&#8221; a label and describes how to use it establishes the customer segmentation types at one&#8217;s disposal. Here are the most popular:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h3><span data-contrast=\"none\">1. Geographic Customer Segmentation<\/span><\/h3>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">It&#8217;s probably the first scalpel any segmenter reaches for &#8211; carving up maps (from the broadest to the narrowest) as follows:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Continents<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Countries<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">States or Provinces<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Counties<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Cities<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Towns<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Zip Codes<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"34\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Neighborhoods within ZIP codes<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"div-minispacer\"><\/div>\n<p><b><span data-contrast=\"auto\">Buying Power as a Guideline<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">It&#8217;s a good time to bring this up &#8211; a segment only qualifies if it has enough buying power to warrant a marketing strategy. Look at it this way:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"37\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">For B2C marketers, one household in Boca Raton (for example) doesn&#8217;t warrant a customized market offering.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"37\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">However, neighboring Scripps (a huge biotech company) in neighboring West Palm Beach certainly may qualify as a segment all by itself as a B2B opportunity.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3>2. Demographic Customer Segmentation<\/h3>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">Once you have your geography defined, you need to break it down into demographics.\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><b><span data-contrast=\"none\">For example:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">A B2C seller of high-end women&#8217;s dresses in Florida may end up with a demographic profile that looks something like this:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The 33496 ZIP in Boca Raton with a five-mile radius.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">The area represents many upper-income families\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Excludes all males for marketing purposes.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Of the females, Caucasian and Latin-American thirty-five years and older.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Self-employed or in senior management.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Earning at least $120,000 annually (i.e., a more refined income focus).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Marital status (i.e., all except single)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Spanish, Russsian, Portuguese, and English speaking<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">After a significant degree of research, the marketer concludes that there are enough people in the zip (and surrounds) with the stated characteristics to warrant opening up a boutique in an affluent suburban shopping mall. To do so there should be a compelling belief that:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"29\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">This &#8220;group&#8221; will go through the same motions in buying dresses.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"29\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The business can turn the things in (a) to its advantage by spotting the triggers that switch enough of the targeted Boca ladies on to the brand.<\/span><\/li>\n<\/ol>\n<p>If the business is online, and the geography much broader &#8211; perhaps spreading to other states or cities &#8211; the segmentation process expands but follows similar \u201ccutting up\u201d rules.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"div-spacer\">\n<div><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49026\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-848875240-300x200.jpg\" alt=\"understand customer segmentation\" width=\"700\" height=\"467\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-848875240-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-848875240-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-848875240-1024x683.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-848875240-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-848875240-50x33.jpg 50w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n<div class=\"div-spacer\">\n<div><\/div>\n<div class=\"div-spacer\">\n<div class=\"div-spacer\">\n<h2>3.\u00a0Other Types of Customer Segmentation<\/h2>\n<div class=\"div-minispacer\">\n<div>These additional \u201cproverbial knives\u201d, if used correctly, will give marketers a unique look at things from different angles.<\/div>\n<div class=\"div-spacer\">\n<p>&nbsp;<\/p>\n<p><b><span data-contrast=\"none\">Firmographic Customer Segmentation<\/span><\/b><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">B2B demographics merge into an arena called\u00a0<\/span><a href=\"https:\/\/www.sogolytics.com\/blog\/firmographic-segmentation\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">firmographic segmentation<\/span><\/a><span data-contrast=\"none\">\u00a0that looks somewhat different from B2C situations. For example, John Deere selling farming equipment may segment by\u00a0<\/span><span data-contrast=\"none\">US rural districts and country towns, then\u00a0<\/span><span data-contrast=\"none\">look at farming operations by:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Crop harvested<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Size of crops<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Number of employees<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Climate<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Product conversion (e.g., fresh fruit, juices, dried fruit, canned fruit, etc.)<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">End consumer<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">The decision-maker (i.e., farm manager or owner)<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"31\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Decision influencers (e.g., accountant, banker).<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Psychographic Customer Segmentation\u00a0<\/span><\/b><span data-contrast=\"none\">defines groups of buyers by attitude, personality, values, and interests. People who share emotional and ingrained value systems are likely to follow similar customer journeys.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><b><span data-contrast=\"none\">Technographic customer segmentation\u00a0<\/span><\/b><span data-contrast=\"none\">defines targeted buyers with similar technological orientation. For example,\u00a0<\/span><a href=\"https:\/\/www.outerboxdesign.com\/web-design-articles\/mobile-ecommerce-statistics\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">79% of smartphone users purchased something online using their mobile device in the last 6 months.<\/span><\/a><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><b><span data-contrast=\"none\">Behavioral customer segmentation r<\/span><\/b><span data-contrast=\"none\">elates to observed tendencies, habits, shopping peculiarities, and unique but healthy activity patterns.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">The point is, if you can pull out your carvers and fashion a unique, accessible market filled with good buying power, you&#8217;re off to a great start.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Customer segmentation strategy and customer segmentation benefits<\/span><\/h2>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">Similar to the chicken and the egg, which comes first &#8211; customer segmentation or the brand? Practically speaking, you have a product or service idea and you go from there. Online sellers have the world as their oyster but face fierce competition because everyone in their industry already knows that.\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The ultimate goal is to zone in on\u00a0 customer segments where the segment members:<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"15\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">See your brand as an essential part of their lifestyle.<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"15\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Follow opinion leaders recommending your brand as the ultimate solution.<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"15\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Align your brand&#8217;s slogan, promotional messages, and benefits with comfortable thoughts and feelings.<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"15\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Believe in your brand so strongly that competitors can&#8217;t disturb their loyalty.<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"15\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Are proud to show the brand to friends, family, and acquaintances as a symbol of being a segment member.<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"15\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Represent enough buying power for your business to make a good profit.\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Customer segmentation, step by step, from geographic through to behavioral, will vividly expose customer segments and enable you to profile your customer. The more you know, and the less your competition knows about viable customer segments, the better. The greater are your chances of designing a brand image that resonates with your targeted customers.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2 aria-level=\"3\"><b><span data-contrast=\"none\">How do you go about customer segmentation (strategy)?<\/span><\/b><\/h2>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">If you are an ongoing business, much of the segmentation raw data you seek is in your records. Structured information is an invaluable asset these days, and affordable technology can:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"27\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Analyze it in ways that detect the patterns and behavioral patterns you are looking for.\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"27\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Develop info sheets (like Excels) that categorize your customers by geographic and demographic parameters from the data sitting in your backyard (age, gender, purchase preferences, etc.,.)<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Aside from the above, consider this:<\/span><\/b><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">There are segmentation studies available for low prices or for free.<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Government census reports abound with pertinent insights.\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">A trained data analyst in your employ should thrive on dissecting data from outside sources and connecting it to your situation.\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"11\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">You can customize your research. Indeed, it may be necessary for getting into the souls and minds of customer segments with interviews. However, not every business can afford that.\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"div-spacer\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49024\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-1264159267-300x210.jpg\" alt=\"customer segmentation\" width=\"700\" height=\"490\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-1264159267-300x210.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-1264159267-768x538.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-1264159267-1024x717.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/11\/GettyImages-1264159267-50x35.jpg 50w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/div>\n<div class=\"div-spacer\">\n<h2 aria-level=\"2\"><span data-contrast=\"auto\">Conclusion<\/span><\/h2>\n<p><span data-contrast=\"none\">If you run a small or medium-sized business and you&#8217;re considering exploring customer segmentation, connect to a company like Sogolytics because they:\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"26\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Have access to structured data sources that can help a broad range of industries.\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"26\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Appreciate the power of segmenting at the lowest cost.\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"26\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Can conduct customer focus group interviews that reveal mind-blowing insights.\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"26\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">May already have the feedback or can direct you to where it resides.\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"Arial, Arial_MSFontService, sans-serif\" data-listid=\"26\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Can easily structure surveys to penetrate customer segments incisivelessly.\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"div-minispacer\"><\/div>\n<p><span data-contrast=\"none\">In short, if you believe in customer segmentation as a strategic tool in a competitive market place, partner with exprts who can develop the optimal route for your success.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>While customer experience, the customer journey, and customer touchpoints are all critical data collection opportunities, the way you analyze your data can make all the difference in converting stats to insights. How are you segmenting your customer data? What is customer segmentation? More importantly, why is customer segmentation important?\u00a0 Answers:\u00a0 Successful marketing in a competitive environment depends on pinpoint specialization and delivering an unsurpassed customer experience (CX). You can&#8217;t do that by being a jack of all trades. People in the wide world may look alike, but they&#8217;re as different as chalk and cheese. Differentials depend on things like where one lives, religious affiliations, ages, education, language, cultures, community influences, and more. These factors divide the population into sliver-like segments with distinct, groundbreaking characteristics.\u00a0 Customer segmentation, against this landscape, may look daunting. However, it&#8217;s the &#8220;open sesame&#8221; to differentiated marketing. It&#8217;s a fact that our neighborhoods, upbringing, affiliations, aspiration groups, social connections create behavior commonality.\u00a0\u00a0 So, what is customer segmentation? Imagine the big wide world as a cake and geographic segmentation as a knife suitable for cutting it up in one way. It\u2019s one of many customized knives that dice and slice the cake in all kinds of interesting patterns. The trick is to have:\u00a0 All the knives available to you\u00a0 The skills to use them effectively\u00a0 The creativity to cut the cake up in ways that suit your brand the best\u00a0\u00a0 For more details on this critical concept, take a closer look at\u00a0marketing segmentation.\u00a0 \u00a0 Customer Segmentation Models Customer [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":5035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204],"tags":[563,532,150],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Ultimate Guide to Customer Segmentation\u00a0 - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"The more meaningful your slices, the better results your customer data delivers! 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Explore customer segmentation strategies to raise your CX data game.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/the-ultimate-guide-to-customer-segmentation\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-19T13:55:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-20T02:58:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2018\/12\/cust-3.png\" \/>\n\t<meta property=\"og:image:width\" content=\"487\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gordon Polovin\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/the-ultimate-guide-to-customer-segmentation\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/the-ultimate-guide-to-customer-segmentation\/\",\"name\":\"The Ultimate Guide to Customer Segmentation\u00a0 - Sogolytics Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\"},\"datePublished\":\"2020-11-19T13:55:34+00:00\",\"dateModified\":\"2020-11-20T02:58:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/93290d69063997af1ba9a4bfb602a285\"},\"description\":\"The more meaningful your slices, the better results your customer data delivers! 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