Why customer segmentation is crucial for effective marketing campaigns.


Customer segmentation is defined as identifying groups of customers that are similar in one or more specific characteristics or factors. There are many factors’ businesses can use to segment customers, but the most common are demographic, geographic, behavioural and psychological. 

Segmenting customers is important as it helps identify which customers are more likely to buy and which ones need more nurturing to purchase. Using this information, advertisers can improve returns on marketing spend by planning effective marketing campaigns that efficiently target specific groups. However, the benefits of segmentation do not end there. Here are some more advantages businesses and marketers should consider for segmenting their customer base. 

Understanding customer preferences 

Customer segmentation gives businesses an in-depth understanding of their customers’ needs and preferences. By grouping buyers based on common characteristics, advertisers can gain invaluable insights into purchase behaviours, pain points and products or services they are most interested in.  

Better offers and promotions 

With more information about customers, brands can target segments with tailored offers and promotions to increase brand recognition or improve sales. Marketers can also cross-promote products to different segments or even upsell popular offerings to people who are more likely to purchase again.

Optimise price points 

By analysing customer segments, businesses can identify which price points are most effective in attracting and retaining customers. Marketers can adjust their prices according to insights from segmentation to boost sales or even introduce new offerings at prices that customers are willing to pay.   

Customer experience 

Customer service and experience are important factors people consider when purchasing from a brand. Advertisers can create personalised messaging for different segments based on purchase history, enhancing a customer’s buying experience. For example, companies can offer exclusive deals or offers to loyal customers who’ve been buying for a long time.  

Personalised communication 

Marketers can personalise campaigns for specific segments, which helps build customer relationships. Targeted marketing communications that resonate with audiences create stronger engagement and trust in the brand, which in turn improves customer retention.  

Customer segmentation is an essential, if not the most important, part of marketing strategies for businesses to compete in today’s markets, where leveraging customer data is crucial for long-term success.

Mortar Marketing uses machine learning to create accurate customer profiles and segments so you can target your customers effectively with personalised advertising to drive sales and boost revenue. Book a call with one of our specialists to learn how machine learning and AI can segment your database and take your marketing to new heights. 

Book a call with one of our experts today to learn how Mortar AI can supercharge your marketing campaigns and grow your business.