User Segmentation is The Best Strategy for Business

Posted On Mon, September 27, 2021, 10:49 AM
If you have ever been targeted by an ad which wasn’t relevant to you, that’s telling of the need of user segmentation. It doesn’t just put customer cohorts of positive correlations or negative correlations together, it optimizes the data on behavior of customers.

What is User Segmentation?

User Segmentation is the grouping of users who share similar characteristics. This could range from spending capacity, time spent on the app, geography and nature of involvement in the app. Under the silos of big data lies the respective segments on consumer’s buying behavior and product insights.

But, why use user segmentation and add one more thing to do to manage your data?

Because all your users are not the same.

On the elementary level, you provide for them and they pay for it. On a secondary level, your users are highly distinguished depending on what they do and who they are, and further metrics of engagement and demographics.

Customer’s buying behavior today is testament to the fact they are seeking tailor-made experiences. User segmentation allows businesses to understand precisely what the customers want from them. While it is easier to act on intuition and have a calculated guess over the choice, it’s not appropriate. Your business needs to leverage persona segmentation, CRM segmentation, data driven insights and customer behavior analytics.

Creating Cohorts at Propellor

Source: Creating Cohorts at Propellor

The Approach for Customer Live Value Focused Segmentation

The stickiness index varies from customer to customer, the more time they spend with the product, it is more likely they are the best customers, in comparison to customers who spend bouts of time which cause negative correlation.

This approach to segmentation analysis addresses each customer cohort based on proven models for effective user segmentation machine learning campaigns.

The Business Approach For Better Targeting for Marketing campaigns

Imagine you have on-boarded thousands of new customers recently. In order to retain the new batch of customers you will have to observe the behavior of this particular segment and keep them engaged and wire them into the habit of using your product. One of the strategies could be by using push notifications.

Likewise in the bigger scope of the matter, for example, launching a marketing campaign, you will have to target like laser to data psychographics. By making personalized marketing campaigns, companies can reduce the efforts of speaking to uninterested customers and double down on efforts which provide a higher return on investment. In the long run, this also helps in churn management.

To get the propellor of data science in motion for your business, request for a demo today.

How to Monitor User Segmentation

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Contact Information:
Ralph Muller

This press release is posted under categories Marketing, E-commerce, Digital

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