Customer Segmentation: The Case for Relevance in Retail Marketing

Customer Segmentation: The Case for Relevance in Retail Marketing

The retail sector is undergoing massive change as companies seek to turn business models on their head and develop highly personalized customer experiences. Winning the loyalty of the customer is more crucial now than ever, and is achievable at last through the smart use of data and technology.

It is increasingly important for marketers to send relevant messages that are tailored to the appropriate stage of the purchase funnel.
Relying on powerful customer experience technology that harnesses artificial intelligence, retailers can segment their customers based on different factors, including email open rates, SMS responses, website pages and products visited.

Customer Segmentation: The Case for Relevance in Retail Marketing

Once customers are segmented, retailers are able to send messages that are personalized based on the appropriate response format (email, text or push notifications). Context is vital because consumers could be engaging with different content at different times and places.

Marketing Strategy

  • Create interest and/or Brand Awareness with Target Audience
  • Communicate your USP
  • Be present when potential customers search for your product/service
  • Drive engagement
  • Deliver a strong Call To Action/Ask
  • Retain customers
  • Leverage fot referrals

Within the purchase funnel, different types of messages are effective at different stages:

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  • Top of the funnel:
    Campaigns directed toward product categories help to determine consumer interest
  • Middle of the funnel:
    Campaigns directed towards products based on historical data
  • Bottom of the funnel:
    Campaigns that feature time-limited offers

While most retailers know they need a sophisticated approach to customer segmentation, many still struggle to understand their customer with a 360-degree view. Many marketers are missing context for their customer profiles – where a shopper is, what device they are on, how close they are to making a purchase.

This white paper will share:

  • How retailers can tailor their messages to where the consumer is in the traditional sales funnel
  • The most relevant data points to use for customer segmentation strategies
  • How brands such as Adore Me and Nike developed customer segmentation strategies that dramatically increased loyalty

To learn more about how to use customer segmentation to increase relevance in your retail marketing strategy, download the white paper here.

Erik Archer Smith
Erik Archer Smith
Erik Archer Smith was a data-driven marketing and sales professional at Treasure Data with 10+ years experience helping companies scale during phases of hyper-growth. Erik got involved with tech early and built the first social media site in Japan using open source technology in the early 2000s. When not working, he enjoys spending time at the beach with his wife and dog, and obsessing over character-build stats in whatever RPG currently has him hooked.