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CPR Level Up: Types of Customer Segmentation Models-part 2

To be able to gather the proper data required to deliver the best customer experience, a leader needs to know thy customer. Every customer or organization has differences regardless of how distinct or narrow the variation is; as a leader, it is essential not to use a single approach when dealing with customers.

Customer segmentation is a powerful strategy allowing businesses to understand their customers better and tailor their efforts accordingly. Let’s dive into the final four types of customer segmentation models:

  1. Behavioral Segmentation:

  • This model focuses on how users interact with your brand. By analyzing their behavior, you can personalize marketing efforts based on their preferences and actions.

  1. Demographic Segmentation:

  • Demographic segmentation groups your audience based on demographic information such as income, age, gender, marital status, and job title.

  • It’s a common starting point for businesses creating a customer segmentation strategy.

  1. Geographic Segmentation:

  • This approach considers where your audience is physically located.

  • It’s beneficial for B2C businesses affected by local climate and customs.

  1. Value-Based Segmentation:

  • Here, you assess the overall financial value of audience segments.

  • By understanding which subgroups yield the best marketing ROI, you can allocate resources effectively.

Remember, each customer is unique, and using these segmentation models helps tailor your strategies to meet their distinctive needs.

1 Comment

My take away from this segment is understanding how advantageous it is to know as much as possible about your customer in terms of age, income, gender, marital status, physical location and the job title was a new one for me.

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