Customer Segmentation Resource Center


The Problem

No two customers are alike.  Even if they buy an identical list of items, they invariably buy in different quantities and at different times.  So the obvious question for marketers is, if customers are all different, why treat them as if they were the same?

Failing to address the differences among customers is costly. Response rates are lower. Customers feel carpet-bombed by campaigns that arrive when they’re not ready to buy. Customer loyalty and lifetime value suffer.

So it’s no surprise that customer segmentation is a key tactic for addressing the differences in a customer population and becoming a customer-centric company.

Everyone Does It

Most direct marketers do some form of customer segmentation already.  For some, it’s as simple as dividing customers into two groups (those we contact, those we don’t).  For others it’s more sophisticated, based on in-depth analysis of customer transactions.  The goal is always the same—reaching out to the right customer at the right time with the right offer.

Customer segmentation can help you develop a contact strategy that lifts returns of direct campaigns. . Research conclusively proves that personalization pays big dividends.  However it isn’t as easy as ‘spray and pray’ marketing (sending the same message to the entire list).  Many companies don’t have the skills or people resources do the analysis and then execute campaigns with variable data, so they fall back to less productive measures. 

The Details Are Here

“Customer Segmentation: The Key To Effective Marketing," a new Loyalty Builders white paper shares what we’ve learned over the last 10 years.  It describes how to divide customers into groups with actionable differences.  It lays out the many benefits of segmentation and describes in detail what data to use, what tools you need, the steps in the process, and the criteria for choosing a good segmentation scheme. You’ll learn how to use customer segmentation, the common mistakes, and the obstacles you’ll face, with examples drawn from Loyalty Builders files.  

 

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