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Discovering Customer Segmentation (And It’s Value)


What is Customer Segmentation and what can it do for you?

Customers segmentation is a great tool with a bad rap. That’s partially due to the fact that many people don’t know about it or how to use it.

When in fact, anyone not using customers segments properly is missing out on huge insights into their customer base. Not to mention, possible profit that could be slipping through their fingers.

Read on to learn what customers segmentation is all about and how you can easily use it to improve revenue now.

What is Customers Segmentation?

As an analyst or marketer, you already know the tremendous value of customer analysis. Nevertheless, by reviewing past and present behaviors, you quickly begin to understand your customers better. You notice trends that are emerging and hone in on potential areas of growth. That in turn gives you the ability to make past customers more profitable and future customers more reachable. It’s an exciting prospect and that’s what customers segmentation can do for you. This is the oil that keeps your machine running smoothly, more efficiently and more profitably at the end of the day.

How Does Customers Segmentation Work?

Customer segments are more easily understood when you look at them simply as groups of customers. You can group these customers into any criteria you like. But, here are a few that are generally useful for gleaning the most information:


By measuring the size of a segment, you get a lot of useful information. You can quickly determine which of your targeted audiences are bringing in the most sales. This can help you in two ways. Understand your customer body better and give you greater insight into where your marketing campaign may need tweaking


The various components or properties of each segment gives you additional insight. In general, Properties will vary based on your specific product or service. But there are similar properties that can be used for all like,

  • How frequently a person visited your site.
  • Number of times they were contacted before purchasing.
  • Number of days since registration or last order.

 In the same way, do this based on various demographics to help you determine which segments are stronger and which are weaker.

Using customers segmentation to review behaviors based on location, gender, age range or other niche-specific. Criteria can show you where your business is coming from most or where you might want to shift your attention.


Utilize customers segmentation to notice emerging patterns in customer behavior.

Perhaps there has been a steady increase in profit from a specific geographic location for men above the age of 35. In that case, you may want to beef up your bonus marketing towards that area to incentivize return customers.

On the other hand, you may notice a decrease from a different cross-section of attributes, in which case you may need to improve your marketing campaign. Patterns can greatly assist your team in tailoring their efforts.

Utilizing Customer Segments

As you can see, the value of customers segmentation is being able to see trends that are emerging. When analyzing segments, we look at both current and past behaviors in order to notice trends in growth or reduction. This will help you better understand where the profit lies and where improvement is needed.  As a result, we have greater insight into specific customer segments and we are better able to market to them based on that understanding. This will result in greater retention and higher revenues, the ultimate goal of all marketing analysis.

Additional reading, 

Need to know more? Read more about the “5 Explosive Powers of Database Marketing” 

Ready to get started? Learn how to How to Write a Kick-Ass Newsletter That Works

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