One of the main reasons why many new products fail is because marketers fall prey to the concept of “one-size-fits-all.” It simply doesn’t work in marketing. 65 to 75 percent of new products have failed to generate the anticipated revenue or profit due to a one-size-fits-all approach.
If you want to improve your marketing results, customer segmentation is the solution. Segmentation plays a vital role in marketing. Each customer is different, with individual needs and preferences, so you need to treat them differently. This is fact that remains regardless of the industry you are in.
So rather than approaching all of your customers in the same way, it’s always better to put them in separate groups. You can group them based on their behavior, psychographics, demographics, or geographical information.
This will help you create a more personalized messaging for your customers that connects better and drives greater revenue.
In this post, we’ll take a look at how customer segmentation can improve your marketing results.
Increases Customer Retention
If you want your customers to keep coming back to you and select you over your competitors, you need to win their trust. Customer segmentation can help you devise strategies to gain the trust and confidence of your customers and increase your customer retention rate.
Segmentation of data helps you to make adjustments to your services or products and offer the best to your customers. Such adjustments or tailoring of services or products can help you meet the specific desires or needs of your customers. This can help you win the trust and loyalty of your customers.
When customer segmentation is done correctly, you can stay in touch with your customers even after a sale.
Perhaps you can ask them to fill out a customer satisfaction form. You can give them some additional useful information about the product they have purchased. Or ask them to sign up for your newsletter to get all of the news and information about your services or products.
Old Navy offers an incentive to encourage more people to sign up to their newsletter. Once a customer signs up, they receive an email with a coupon code that gives them a 20 percent discount on their next purchase.