{"id":1551,"date":"2021-04-13T18:23:43","date_gmt":"2021-04-14T01:23:43","guid":{"rendered":"https:\/\/www.agiliron.com\/blog\/?p=1551"},"modified":"2025-11-14T04:35:44","modified_gmt":"2025-11-14T12:35:44","slug":"how-proper-customer-segmentation-can-lead-to-more-sales","status":"publish","type":"post","link":"https:\/\/www.agiliron.com\/blog\/how-proper-customer-segmentation-can-lead-to-more-sales\/","title":{"rendered":"How Proper Customer Segmentation Can Lead to More Sales"},"content":{"rendered":"<h2><strong>A guide on how to segment your customers and boost your revenue.<\/strong><\/h2>\n<p>&nbsp;<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-1552\" src=\"https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2021\/04\/pexels-helena-lopes-711009.jpg\" alt=\"A guide on how to segment your customers and boost your revenue\" width=\"1280\" height=\"853\" title=\"\" srcset=\"https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2021\/04\/pexels-helena-lopes-711009.jpg 1280w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2021\/04\/pexels-helena-lopes-711009-300x200.jpg 300w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2021\/04\/pexels-helena-lopes-711009-1024x682.jpg 1024w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2021\/04\/pexels-helena-lopes-711009-768x512.jpg 768w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2021\/04\/pexels-helena-lopes-711009-600x400.jpg 600w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><a href=\"https:\/\/www.pexels.com\/photo\/group-of-people-reading-book-sitting-on-chair-711009\/\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Source<\/span><\/i><\/a><\/p>\n<p><span style=\"font-weight: 400;\">In a time where more businesses than ever are migrating online, standing out in your niche is vital as a retail or eCommerce business owner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To thrive in today\u2019s fast-paced digital landscape, you need to cut through the noise while giving your customers exactly what they want.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While putting out a generic sales message and sharing a deal or two was once an effective sales tactic, today\u2019s shoppers demand more from eCommerce or retail brands.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today\u2019s tech-savvy, digitally empowered consumers want brands to offer a valuable shopping experience while reaching out to them with a personal touch. Properly segmenting your customers can help with this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s understand the concept of customer segmentation and how you can use it to improve customer loyalty, grow your audience, and boost sales.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>What is customer segmentation?<\/b><\/h2>\n<p><a href=\"https:\/\/www.accenture.com\/content\/dam\/accenture\/final\/accenture-com\/document-2\/Accenture-Pulse-of-Change-2024-Index-Executive-Summary.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ninety-one percent of consumers<\/span><\/a><span style=\"font-weight: 400;\"> will shop with brands that provide relevant offers and product recommendations. If you know what your customers want and need, you can connect with them in a way that offers genuine personal value. As a result, you\u2019ll be more likely to earn a sale (or repeat sales).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer segmentation is the process of creating different groups of your customer base and categorizing them according to demographics, shopping preferences, or distinct characteristics, usually based on market research and your online store\u2019s data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You could, for instance, segment your customers into groups such as <\/span><i><span style=\"font-weight: 400;\">repeat customers<\/span><\/i><span style=\"font-weight: 400;\"> or <\/span><i><span style=\"font-weight: 400;\">customers that prefer shopping in-app. <\/span><\/i><span style=\"font-weight: 400;\">You can also segment them based on age, location, occupation, shopping habits, or even personal interests.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Why should I segment my customers?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you\u2019re up to speed with the concept of customer segmentation, let\u2019s look at the benefits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Segmenting your customers will help you create communications or marketing campaign messaging that appeals to specific members of your audience. Making your messaging more value-driven and less generic will result in more conversions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By taking a personal approach to your content and communications, you will boost your brand reputation. In turn, you will reach more customers, earn more trust, and enjoy more sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Through customer segmentation, you can take an analytical approach to your business strategy by identifying strengths and weaknesses within your audience. By arranging customers into groups, you might discover a segment of your audience that you\u2019ve neglected and create a marketing campaign to engage them with your brand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retail and eCommerce businesses that segment their customers enjoy an average <\/span><a href=\"https:\/\/www.wigzo.com\/blog\/customer-segmentation-stats\/#:~:text=6%20Powerful%20Customer%20Segmentation%20Statistics%20That%20Every%20Marketer,Expect%20Brands%20to%20Make%20the%20First%20Move.%20\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">71% return on investment (ROI)<\/span><\/a><span style=\"font-weight: 400;\"> from their email marketing efforts alone.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>How to segment your customers for retail &amp; eCommerce success<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">By taking a strategic approach to how you segment your customers, you will meet your consumers\u2019 needs head-on and accelerate your business growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are the steps you should take for effective customer segmentation:<\/span><\/p>\n<h3><b>1. Know your customers &amp; define your goals<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Before you start to place your customers into groups, you need to give your sales and marketing strategy a clear-cut direction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To do so, you should create at least 2-3 customer profiles\u2014or buyer personas\u2014that represent your model customers. You can use these profiles as working templates when deciding how you\u2019re going to segment your customers (and, later down the line, how you\u2019re going to communicate with them).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve created your personas, you will be able to define your goals. Do you want to boost sales in certain product categories or improve your customer loyalty rates? Perhaps you\u2019re looking to enhance your email marketing engagement?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider your core goals to lay solid foundations for your customer segmentation efforts.<\/span><\/p>\n<p><b>Resource: <\/b><span style=\"font-weight: 400;\">Read our definitive <\/span><a href=\"https:\/\/www.bing.com\/search?q=buyer+personas+agiliron&amp;cvid=8d60cabca2db47618f4c76bc4fce17dc&amp;aqs=edge.0.69i59j69i57j0l5.1655j0j1&amp;pglt=299&amp;FORM=ANNTA1&amp;PC=LCTS\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">guide to creating effective buyer personas for your business<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>2. Map your customer journey<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Armed with your buyer personas and customer segmentation goals, you should take time to consider the bigger picture.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer journey mapping will empower you to see how shoppers interact with your brand across all channels and touchpoints. When you gain a panoramic view of your customers\u2019 experience, it will become clear where you should aim your customer segmentation efforts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve mapped out your customer journey, you can establish which channels (email, social media, landing pages, category pages, mobile app, checkout journey, etc.) you will need to consider when communicating with different segments of your audience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, focusing on one or two channels isn\u2019t good enough\u2014you need to offer tailored messaging at every stage of a shopper\u2019s journey. This jargon-free customer journey mapping tutorial will help you get started:<\/span><\/p>\n<p><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/qlcmM6w5cPc\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><b>Resource: <\/b><span style=\"font-weight: 400;\">Read our <\/span><a href=\"https:\/\/www.agiliron.com\/blog\/5-steps-to-boost-your-brands-customer-experience\/\"><span style=\"font-weight: 400;\">five essential steps for boosting your brand\u2019s customer experience (CX)<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>3. Get analytical<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Now that you\u2019ve created your personas, set your goals, and mapped out your customer journey, it\u2019s time to dive a little deeper into your data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To segment your customers into groups that will benefit your business, you should consult your store\u2019s data to gain a better insight into how your audience interacts with your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By working with a mix of demographic information (age, sex, location, etc.) and behavioral data (e.g., shopping, browsing, and buying habits), you can create names for your customer groups and start to populate them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Working with your most relevant metrics using Google Analytics or your store\u2019s built-in data analytics platform will allow you to segment your customers swiftly and effectively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are ways you can segment your customers using your buyer personas and data:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Demographic: <\/b><span style=\"font-weight: 400;\">These customer segments could be arranged by <\/span><i><span style=\"font-weight: 400;\">age or generation; occupation type; education; income; sex, or marital status. <\/span><\/i><span style=\"font-weight: 400;\">You can also drill deeper by combining demographics\u2014for example, <\/span><i><span style=\"font-weight: 400;\">millennials that are married <\/span><\/i><span style=\"font-weight: 400;\">or <\/span><i><span style=\"font-weight: 400;\">female college graduates.<\/span><\/i><\/li>\n<li aria-level=\"1\"><b>Geographic: <\/b><span style=\"font-weight: 400;\">To create <\/span><a href=\"https:\/\/www.bing.com\/search?q=local+marketing+agiliron+blog&amp;cvid=76dbd4262d294d1ab5e06a1b5d115824&amp;aqs=edge.1.69i57j69i59.5464j0j1&amp;pglt=299&amp;FORM=ANNTA1&amp;PC=LCTS\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">regionally targeted marketing campaigns<\/span><\/a><span style=\"font-weight: 400;\">, you can segment your customers according to location. Doing so will help you create content and offer deals, discounts, or recommendations that are likely to suit the local climate, surroundings, or culture.<\/span><\/li>\n<li aria-level=\"1\"><b>Lifestyle or interests: <\/b><span style=\"font-weight: 400;\">Similar to demographic segmentation, you can also consult your personas and data to create groups according to lifestyle or personal interests. For example, you might want to create a group named <\/span><i><span style=\"font-weight: 400;\">outdoors types <\/span><\/i><span style=\"font-weight: 400;\">and another named <\/span><i><span style=\"font-weight: 400;\">lovers of city breaks <\/span><\/i><span style=\"font-weight: 400;\">(of course, the way you arrange and label your groups will depend on who you are and what you sell).<\/span><\/li>\n<li aria-level=\"1\"><b>Browsing behavior: <\/b><span style=\"font-weight: 400;\">Your store\u2019s engagement and browsing data will tell you a lot about your customers. If you look at past browsing or buying history, seasonal shopping habits, or order value, you could create segments like <\/span><i><span style=\"font-weight: 400;\">customers with a high order value;<\/span><\/i> <i><span style=\"font-weight: 400;\">repeat shoe sale customers; <\/span><\/i><span style=\"font-weight: 400;\">customers that <\/span><i><span style=\"font-weight: 400;\">shop in-app, <\/span><\/i><span style=\"font-weight: 400;\">or <\/span><i><span style=\"font-weight: 400;\">Halloween shoppers.<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you follow the steps correctly, you will be able to use your personas, goals, mapping information, and data to get as detailed as you wish with your customer segmentation efforts. It\u2019s possible to combine elements of all four segmentation types mentioned above and get super specific with your campaigns or communications.<\/span><\/p>\n<p><b>Resource: <\/b><span style=\"font-weight: 400;\">Get to know your customers and competitors even better with our <\/span><a href=\"https:\/\/www.agiliron.com\/blog\/a-small-business-owners-guide-to-social-listening\/\"><span style=\"font-weight: 400;\">guide to social listening<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>5. Target your customer segments<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve arranged your customers into neat and effective segments, you should put theory into practice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At this point, you can pick a customer segment that you feel will offer the most value if targeted first and decide how you\u2019re going to reach out to them depending on their demographics, browsing behaviors, or interests.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you target your segment on one channel or are looking to create a wider marketing campaign, you should consider what this group of customers wants and needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve established what information, products, and services will resonate with your customer segment the most, you can start building content that will offer personal value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some resources to help guide your campaign content:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/www.agiliron.com\/blog\/4-email-marketing-examples-for-your-next-retail-campaign\/\"><b>4 email marketing examples for your next retail campaign<\/b><\/a><\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.agiliron.com\/blog\/how-to-win-more-sales-with-emotive-marketing-this-holiday-season\/\"><b>How to win more sales with emotive marketing<\/b><\/a><\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.agiliron.com\/blog\/5-offbeat-content-marketing-ideas-for-retail-ecommerce-business-owners\/\"><b>5 offbeat content marketing ideas for retail and eCommerce business owners<\/b><\/a><\/li>\n<\/ul>\n<h3><b>6. Rinse and repeat<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The online world is always changing\u2014and so are your customers. To ensure your customer segmentation efforts remain relevant and valuable, you should repeat this process periodically, making tweaks, updates, and refinements where necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That way, you will always meet your customers\u2019 needs head-on while appearing personable, approachable, and above all, more useful than your competitors.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Working with the right tools and solutions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">We hope this practical guide to customer segmentation helps your business thrive. If you need a better solution for <\/span><a href=\"https:\/\/www.agiliron.com\/solutions\/\"><span style=\"font-weight: 400;\">managing your online store<\/span><\/a><span style=\"font-weight: 400;\"> and tracking your data, we can help.<\/span><\/p>\n<p><a href=\"https:\/\/www.agiliron.com\/about\/contact-us.html\"><span style=\"font-weight: 400;\">Contact us<\/span><\/a><span style=\"font-weight: 400;\"> to find out about what we do, and we\u2019ll be happy to answer all of your questions. We look forward to hearing from you.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A guide on how to segment your customers and boost your revenue. &nbsp; Source In a time where more businesses than ever are migrating online, standing out in your niche is vital as a retail or eCommerce business owner. To thrive in today\u2019s fast-paced digital landscape, you need to cut through the noise while giving [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1553,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/posts\/1551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/comments?post=1551"}],"version-history":[{"count":0,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/posts\/1551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/media\/1553"}],"wp:attachment":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/media?parent=1551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/categories?post=1551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/tags?post=1551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}