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With the constant growth of technology, the global marketing automation industry is predicted to hit $8.42 billion in 2027. But you can unleash the fullest potential of automated marketing only when you have your marketing campaigns ready to be launched. The most important step before creating an effective one lies in knowing your target audience.

Herein comes the importance of user segmentation in your business growth.

User segmentation is the guiding light that lets you navigate the challenging waters of knowing your true audience. Building better products starts with learning about your users, and gaining important customer information begins with effective user segmentation.

What does User Segmentation mean?

User Segmentation refers to putting your customers under different groups based on certain factors, such as age, gender, location, industry, etc. Through proper segmentation, companies understand their customers better. User segmentation also helps create more tailor-made products and marketing efforts for specific target groups.

Once your customer groups are ready, you need to use product analytics software to track group behavior, compare group data, and experiment with your campaigns. Through user segmentation, you can communicate with your target audience better and through the right channels.

What does a particular user segment consist of?
A specific customer segment or group comprises similar needs, wants, purchasing patterns, and overall buying personas.

You can only take the help of a marketing automation platform once you can define your customers and take a more customized approach to your marketing efforts.

What are the different customer segmentation models?

Demographic:
This is a readily used method of classifying users under different groups. Under this model, companies take note of customer age, gender, trait, education, job profile, etc., and create separate groups of similar users. The two popular industries where Demographic segmentation works the most are e-commerce and fashion. When demographic segmentation is done effectively, you can send relevant product recommendations and shape your campaigns accordingly.

Firmographic:
Companies segregate B2B customers based on shared company attributes. In this case, the determining factors are revenue, industry, employee count, business model, etc. This assumes utmost importance when segregating B2B customers into various groups. By zooming into customer specifics, you can create better offers and resources and be more effective in securing the attention of your coveted customers.

Technographic:
Categorises users based on their technological preferences. This considers the devices used to access the company website, the operating system on their devices, software, and app usage, etc.

By collaborating with Springwood, the best marketing automation services in the US, you can work on your product campaigns, analyze their strengths and weaknesses, and work on improving further.

Behavioral:
A popular marketing strategy, behavioral user segmentation, identifies people who might be similar to the existing users who have bought products from a certain company.

Group users based on their behavior on the website, including their interaction with the product, login sessions, pages viewed, etc. By using this segmentation process, companies can find out whether a user will buy the product or use the service in the coming years.

Psychographic:
Companies use measures such as Net Promoter Score (NPS) and Customer Satisfaction (CSAT) to segment users as per their lifestyle choices, product preferences, likes and dislikes, etc.

When you know about the tastes, likings, preferences, etc., of your customer base, you can steer your marketing campaigns as per the needs of your users. And then, through automated marketing, you can further streamline your marketing efforts and keep your endeavors more organized.

Customer data:
The treasure trove stored inside a CRM customer data reveals valuable customer data and helps to group them successfully. This generally includes details about the customer journey stage, usage history, buying patterns, etc.

After you are able to segregate your customers based on their data, such as plan type, annual revenue, renewal date, account owner, etc., you can create specific campaigns targeted at your customer base. Following the proper execution of the campaign, you can use the Springwood marketing automation service to track your campaigns, analyze customer behavior, and make informed decisions about your business.

Cultural:
Under this technique, customers are segmented based on their cultural affiliations or preferences. This segmentation mode is mostly used to understand the requirements of different cultures and how to cater to their differing preferences.

Occasional:
This segmentation process is done with a special focus on specific events or occasions. Such occasions have no connection with the users. In this process, the entire market is grouped into specific user cohorts based on user behavior when they think of buying, buying, or using a product.

Following successful customer segmentation, partner with Springwood to avail of Springwood's marketing automation service. From valuable customer data to useful campaign insights—Springwood is the one-stop shop for all your marketing needs.

But it doesn't end there. Ensure that following proper user segmentation, your company applies the knowledge, creates impeccable marketing campaigns, and tracks them effectively through expert marketing automation platforms.

User Segmentation: Some Famous Instances

McDonald’s
An interesting example of cultural and demographic segmentation is done by McDonald's. From marketing strategies to the copy in their advertisements, the brand creates personalized content so that they can easily fit into the preferences of their target audiences.

The North Face
The North Face, the elite activewear and sports brand, uses psychographic information to target its users who prefer good quality fabric, the latest design, and the most comfortable fit. Therefore, they target consumers who can afford high-end products.

Amazon
We all know how Amazon creates value through behavioral segmentation. The company identifies cart-abandoning customers and reminds them to complete their purchases, encouraging them to avail themselves of the best discounts or recommend time-bound deals.

H&M
Seeking technographic information can be a lot of help, and H&M has proven this right. The brand digs deeper into its customer base. It segregates consumers based on what devices they are using to access the website. Following this, they share personalized recommendations based on the kind of devices their users possess.

Olay
Olay's Skin Advisor feature makes use of customer data. The AI-based beauty tool asks customers a couple of skin questions and collects important data. Then, the advisor reveals the recommended products and nudges the buyer to purchase the most appropriate and relevant one.

Netflix
The same thing is done by Netflix, which collects user data using its algorithm and experimenting with user preferences. Its accurate A/B testing recommends content based on customer data and consumption patterns, which helps the brand save almost $1 billion per year.

Final Thoughts

Are you looking for the best provider of marketing automation services in the US? But have you segmented your audience and shared relevant and appropriate campaigns with them? If not, then you're lagging behind your competitors.

Apply user segmentation to segregate your client base into different categories and give your customers all they require regarding products, services, and communication. Grab your competitive marketing edge, nurture your campaigns, and reach out to your audience with more effective and well-crafted campaigns specially created for them.

Keywords - user segmentation, customer retention, customer engagement, marketing strategies, marketing campaigns, marketing automation, automated marketing services in US

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