Customer Segments
Identifying Customer Needs
Build Customer Segments to tailor the Customer Experience
Understanding your customers is the key to driving success in retail. Customer Segmentation allows you to group your customers based on shared characteristics, behaviors, and preferences, enabling you to tailor your marketing strategies, product offerings, and customer experiences. By focusing on the unique needs of each segment, you can increase customer satisfaction, foster loyalty, and maximize revenue. Whether you’re launching targeted campaigns or personalizing shopping journeys, customer segmentation empowers you to make data-driven decisions that truly resonate with your audience.
Define the Decision Dimensions
Let’s define the different dimensions you compete within the market place. These will be different from one industry to the next and the ones listed here are for illustrative purposes only.
When customers shop your store/digital property, what are the different areas that they are comparing you to your competitors? What are the most important things to get “right” for this segment? These are things that when done well will retain these segments and drive lifetime value.
Build Segments
With the Importance/Decision Dimensions defined, it is now time to leverage AIML algorithms to stratify our customer base along each one of these dimensions to understand how sensitive each customer is to each of these areas. As an example, how likely is each segment to defect to a competitor based on long wait times, or price gaps to competition? The images illustrate how different groups of customers value different dimensions of the market offering differently.
