Where is Virtual Reality (VR) heading to?4 January 2018
Product engineering – comprehensive product design6 January 2018
Data analytics is a formidable tool for marketers, but the data itself will not bring customers to us. We need something that will make data work for us. The way to fill the gap between information about users and what is supposed to make them happy is user segmentation. It is necessary for the effectiveness of marketing campaigns. By creating user segments, you can personalise your message and target recipients more accurately.
This means that users who receive a message from us are interested in our services. Another benefit of segmenting application users is that the marketer can better understand the market and focus the campaign accordingly. The advertiser can also take a more competitive position compared to other companies focusing on a particular group of users. There are great opportunities ahead of him if he devotes the time and effort to divide users’ behaviour in the application.
Why is user segment worth building?
One of the most important reasons to build a user segment is to utilising your data. The analytics teaches you a lot about your users, but it can be difficult to draw specific conclusions from historical usage data. After all, analytics is a thing of the past – it does not provide information on how to improve conversion rate or retention. This is where segmentation comes into play. By filtering your audience, you can create personalised content that serves the audience that most needs it. A seemingly average conversion rate may be the result of one group that consistently converts and another group that almost never converts. In this situation, segmentation will help you understand what to do to engage the first group and what you can improve to reach the second group.
At the stage of expansion, the implementation of marketing strategy without knowing the segmentation of the target market is similar to hit-or-miss shooting. The probability of hitting is more a matter of luck than anything else. However, if the current segmentation of clients is done properly, the business profits will be countless. For example, the best current customer segmentation can have a tangible impact on your business performance. Having a clear idea who wants to buy your product and what they need will help you to distinguish your company as the best solution for their individual needs. The result will be increased satisfaction and better results compared to competitors. Benefits go beyond the basic offer of products because all information about the best customers will allow your organisation to offer better customer service and professional services.
Focusing on the marketing message: carrying out a customer segmentation project in line with product improvements and can help develop more targeted marketing communication.
Getting higher-quality income: not all income is equal to each other. Selling to the wrong segment may be more expensive to manufacture and maintain, and after the initial purchase may have a higher resignation rate or lower potential. By avoiding these types of customers and focusing on the better ones, it will increase your margins and increase the retention of the customer base.
Conducting the best current customer segmentation research can, of course, bring many additional benefits. The bottom line is that if you are able to sell more of your products to your most profitable customers, you’ll be able to scale your business more efficiently and make sure everything you do rotates around the right things.
How to segment users?
The correct use of segmentation is crucial because there are an infinite numbers of combining features. In this case, you can follow the best practices in this area:
1. Set clear goals
If you want your message to reach the right groups of users, you must decide what your goals are.
2. Start from
Specify important attributes, such as gender or language.
3. Use the appropriate attributes
There are many ways to segment users, but remember to use attributes that you can measure and that are useful to increase your engagement.
4. Don’t be too specific
Specialists advise that 3 attributes are a good way to get started. More attributes can cause confusion. Remember to always check your strategy. If the results are not satisfactory, change the attributes and try again.
What is the customer segment and how do we create it?
Customer segments (also known as user groups, people or user profiles) are groups of people who have specific characteristics. Customer segmentation means focusing on the group that buys your goods or services to understand:
- What is important to them?
- What do they need or look for?
- Typical network behaviours?
- How to design for them?
- What makes them come back?
- How to customise the experience especially for them?
Customer segments can be divided in many ways. For example, you can divide your customers into segments by:
- Experience level
- Shopping behaviour
- Customer type
- Knowledge about the domain
- Using the Internet
To get reliable forecasts and focus your marketing campaigns in the right direction, you must use user segmentation. The idea is to get the right users for your application. It all depends on the type of application, but if you track user activities in your application, you can increase the number of users and conversion.