enterprise loyalty

"26 year old males, living in Boston, who purchase donuts on Tuesdays" & Other Customer Segmentation Tricks

Customer segmentation photo

In the age of the customer, customer relationships are the only remaining source of competitive advantage. As a marketer, it’s essential to deliver real-time, contextual messages based on customer interactions with your brand. And, it’s no easy task.

At Belly, we recommend starting with the following customer segments to drive customer loyalty. Try using a combination of segmentation strategies to deliver effective messaging that will build customer loyalty.

**1. Shopping habits

** One of the most popular and effective methods of segmentation is by shopping habits. You can learn what types of products each customer tends to purchase in order to match them with corresponding promotions, rewards, and deals later on. I love this type of targeted marketing because it ensures your business is only sending promotions that are relevant to your customers’ individual interests. In return, segmenting customers based on shopping habits provides your business with valuable insights regarding what products and/or services are the most popular amongst certain groups of shoppers. In addition to product preferences, you should track how your customers like to shop – do they mostly purchase in store? Online? On mobile? With this type of segmentation, you can achieve much more effective marketing strategies.

2. Lifecycle

Lifecycle segmentation reflects the chronology of your company’s relationship with each customer based on the amount of time they’ve been active in your loyalty program. Separating your customers by lifecycle allows you to send promotions that are relevant to the interaction they’ve experienced with your business. These promotions should be different from the offers sent to lapsed customers who haven’t made a purchase recently who you’re trying to win back. With a platform like BLUE by Belly, you can establish automated promotions that attempt to win back lapsed customers who haven't made a purchase in a while. Lifecycle segmentation also enables you to pinpoint your most devoted customers, making it easy to offer them special rewards for their extended loyalty.

3. Spend

Segmenting your customers based on spend is another way to match them with targeted promotions and reward them for their loyalty. For example, Starbucks and Sephora offer very popular spend-based loyalty programs that reward the highest spenders with the highest tier of reward benefits. Spend-based segmentation is an easy and effective way to identify and reward your most valuable customers.

4. Localized Customer Segmentation

At a market level, customer segmentation allows your company to see the big picture of who its customers are and how they respond to various promotions. As a company grows, it can be difficult to sustain the personal connections that startups are able to achieve. Through segmentation, however, each customer can still feel valued and appreciated through the rewards that fit their individual interests and needs. With a modern loyalty platform like BLUE, companies can now bring the timeless value of personalized customer relations to a market-wide scale. In essence, by segmenting your customers you can create a customer facing loyalty program that places the needs of each client at the center of your business plan.

5. Store-level Segmentation

Store-level customer segmentation can also allow your brand to make effective marketing decisions. For example, you may discover that one store location receives a lot of business from a particular age group or from customers with certain spending habits. This insight allows your company to understand what store specific changes can be made to continue to foster business with the thriving customer group, as well as attract other types of customers to the particular store.

By segmenting your customers based on important criteria, and using available analytical tools, your company can constantly learn about its customers, make changes accordingly, and continue to grow. Segmenting your customers, for example, may reflect that a certain group is not responding positively to a certain product, service, or loyalty reward. This insight can allow your company to make market-wide or localized changes in order to improve the overall success of your business.

Customer segmentation is quickly becoming a standard modern marketing practice, which is why it is so important for businesses to start segmenting their customers in order to remain competitive. What customer segmentation strategies have you implemented? Learn more about BLUE by Belly, our new omni-channel loyalty platform that can help you effectively segment your customers.