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Data segmentation: what is it and why it’s important

Data segmentation is a way to divide customer data into smaller groups with similar traits. It can be an incredibly effective way to target your audience. And it’s becoming increasingly important as more people use the Internet and social media. In this blog, I am going to cover what data segmentation is and why it matters. For example how you can get started with this strategy today. As well as some common use cases for each type of segmentation: demographics, behavior history and psychographics.

Data segmentation is the process of dividing your customer data into smaller groups with similar traits.

Data segmentation is the process of dividing your customer data into smaller groups with similar traits. It’s a crucial step when it comes to creating effective marketing strategies. It allows you to target specific audiences. Basically, you can speak to them in a way that resonates with them on a personal level.

Data segmentation can help you increase return on investment (ROI) by increasing engagement and conversions, while also reducing costs. For example, if you have a list of 100 contacts. But, only 10% of these contacts are interested in receiving emails from you. Then spending money sending emails to everyone would be pointless. You’re better off targeting only those who are interested in what you’re selling! This is why data segmentation is important. It helps ensure that every message sent out has maximum impact on both sides (the sender and recipient).

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Data segmentation is essential in collecting, managing, and using relevant data.

Your goal with this should be to optimize your marketing strategy, attract new customers and increase sales.

Data segmentation is the process of dividing your customer data into smaller groups with similar traits. It’s a more granular way to analyze and understand the customers who visit your website or make purchases from you.

It can be tricky to do well, but it’s key in collecting, managing, and using relevant data to optimize your marketing strategy, attract new customers and increase sales.

Why does data segmentation matter?

Data segmentation is the process of dividing your audience into groups based on their sharing, buying, and other behaviors. The more you know about a consumer. The more likely you can tailor your marketing strategy to his or her needs and preferences.

In addition to helping you target your audience more efficiently, data segmentation helps you make better decisions by giving you access to relevant data. For example: Someone is searching for a new shirt online but doesn’t buy one right away. They don’t see anything they like at that moment in time (aka “marketing latency”). With data, you are able to track them as they navigate your site or app over time. So that when it does come back around for them (either through an e-mail reminder or another visit). You can show them exactly what they were looking for originally. And hopefully, make them an offer too tempting not to resist!

Imagine you work for an e-commerce company selling footwear for men’s fashion.

Imagine you work for an e-commerce company selling footwear for men’s fashion. You have just finalized launching a new line of products. A series of summer shoes targeted towards men in their mid-thirties to the late forties with disposable income. Now that the product is out, it’s time to find some new customers!

One way you could do this is by using data segmentation. Use it to target users who would likely be interested in these new shoes. By targeting these users specifically and sending them ads on social media or email marketing campaigns, you’re more likely to reach them. At least more than if you were just sending an ad about shoes at large. (and there are many other ways that data segmentation can help).

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Data segmentation helps your marketing strategy

You need to be sure that your marketing strategy targets the right customers. This way, when you create marketing campaigns and send them out to different groups through email or social media ads, they can be more effective at reaching their target audience.

Data segmentation is the process of dividing your customer data into smaller groups with similar traits. It could be things such as age range and gender or income. It’s essential because it allows marketers to collect better quality data about who their customers are. From there you can make more informed decisions regarding what products or services should be offered next year when designing future campaigns.

Now you need to find a way to nudge these customers toward your website.

You’ve done some research. You’ve analyzed your customers’ behavior. And now you know that there’s a segment of your audience that’s very likely to buy from you. Now what?

You can’t just ask these folks to come back on their own. You need to make it easy for them by using ads in different places. It can be on social media, display networks, and search engines like Google. It’s also important not to be too pushy with this. After all, these people have already given you their information once before! The key is finding the right balance between making them aware of your product or service. And at the same time not seeming like a spammer who keeps sending out repetitive messages without any substance behind them. Great marketing feels like receiving a hot tip from a good friend. Aim for that.

You’ve launched a paid campaign on social media targeting them based on the interest “men’s footwear” and age group “35–45.”

You’ve launched a paid campaign on social media targeting them based on the interest “men’s footwear” and age group “35–45.” But what if you could also target those who have purchased shoes from you before? Or what about people who live in the same city as your store? Or those who fit your brand persona?

The possibilities are endless! In fact, that’s why segmentation has become so important to marketers over the years. It allows us to understand our audience better than ever before.

The problem? Your ad was shown to thousands (!) more people who don’t fit these criteria. (Or are not interested in buying anything at all).

If you’re familiar with the Pareto principle (80/20 rule), data segmentation is all about targeting 80% of your audience without wasting any more of your budget on 20% of them. This means that instead of showing your ad to everyone. You’re only showing it to people who are likely to convert into customers and buy whatever it is that you’re selling.

The problem? Your ad was shown to thousands (!) more people who don’t fit these criteria (or are not interested in buying anything at all). You just wasted time and money on those non-converting viewers.

If you were using data segmentation, all these additional people would have been eliminated early on.

If you were using data segmentation, all those additional people would have been eliminated early on. You would have focused your efforts on the customers with the highest potential to buy and that is exactly what you want to do!

Data segmentation is the process of dividing your customer data into smaller groups with similar traits. It can be a tricky task, but data segmentation is essential in collecting, managing and using relevant data to optimize your marketing strategy, attract new customers and increase sales.

Data segmentation can help you target your audience more efficiently.

Data segmentation can help you target your audience more efficiently.

  • It helps you find out more about your audience. For example, if you’re selling shoes on on your webshop, you’ll want to know which types of people buy running shoes. You can then create ads targeted toward runners or other sports enthusiasts so that they see what they’re looking for when they visit your page.
  • It improves marketing strategy: Segmenting data allows you to make more informed decisions about how best to reach customers and improve sales in the long run.
  • It improves sales: Companies who use data segmentation are able to get closer to their customers than ever before and offer them exactly what they want without wasting money on unnecessary advertising campaigns or products that aren’t relevant to the specific demographic being targeted (i.e., non-runners).
  • It improves customer experience: Data segmentation helps businesses better understand their customers’ needs so as soon as someone visits their website/app/social media page etc., there will be no doubt whatsoever about whether or not this person wants whatever it is being offered right now–or even at all!

Conclusion

Using data segmentation is the very essence of great e-commerce today. But to get good segmentation, you need good data. And the best place to work with good data is with a customer data platform for e-commerce. That is how you will kill it with your segmented audiences and reach new heights.

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