Retail Strategy

Personalization & Segmentation

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What is Personalization & Segmentation?

Segmentation is about the marketer: it involves identifying similar groups of potential customers according to relevant information that marketers can use to deliver a mix of strategies to receive exceptional results.

It typically follows a set of descriptors, including a potential customer base’s demographic or psychographic variables. Personalization, on the other hand, is about the customer: it involves identifying a specific customer within a segment. It is all about how the brand can solve that individual's pain point or need and understanding the customer's intent and creating personalized experiences around that intent. Both proprietary and publicly available data along with domain expertise shape how these two competencies are part of your core retail strategy.

Why is Personalization & Segmentation important?

Combining segmentation and personalization allows marketers to reach their customer base where they are and are both critical in today’s hybrid retail environments. Segmentation allows you to create content for specific customer groups, while personalization means looking more in-depth into each of your customers within a segment individually.

Custom messaging

Gone are the days of receiving an e-mail with the heading “Dear Sir/Madam”, but personalized marketing is much more than just inserting the customer name into the same marketing email that goes to everyone. When you personalize your marketing, you send the right message to the right people at the right time. Not only does it give your content a touch of humanity, but it can drive revenue, too.

Psychographic segmentation

With more and more data readily available, obtaining a specific picture of who our customers are is possible. Going beyond demographic or geographic, psychographic segmentation is focused on your customers’ personalities and interests; not only who they are, but why they are. It can be harder to identify, but psychographic segmentations allow for incredibly effective marketing that consumers will feel speaks to them on a much more personal level.