Digital business that knows their customers can use this knowledge to create a unique personalized experience.
Based on data analysis company can define multiple customer segments to personalize the shopping experience. There are various approaches to customer segmentation.
In B2C, it could be based
- Behavioral data: how a shopper engages with your brand and products on your site, social media, or other channels.
- Geographical data: country, region, postal address, IP address
- Psychographic data: lifestyle, personality, social class, values, and so on.
- Demographic data: gender, age, religion, education, income, marital status, or occupation
- Membership: ****Shopping club, loyalty programs like Amazon Prime, and so on
In B2B, businesses are using different criteria for customer segmentation
Firmographics – is the B2B equivalent of B2C demographic data. Segmentation is done based on business size, company location, industry, and so on.
Customer tiering segments customers based on how much revenue you can expect from them or the best sales and marketing strategies you use to reach them.
Based on Needs Needs-based customer segmentation groups your customers according to what they want in your products.
Customer sophistication segmentation looks exclusively at a target company’s awareness of the problem your product solves. Are they experienced users, or new to the market, and do you need to educate them on what you offer?