If you have ever been targeted by an ad which wasn’t relevant to you, that’s telling of the need of user segmentation. It doesn’t just put customer cohorts of positive correlations or negative correlations together, it optimizes the data on behavior of customers.
What is User Segmentation?
User Segmentation is the grouping of users who share similar characteristics. This could range from spending capacity, time spent on the app, geography and nature of involvement in the app. Under the silos of big data lies the respective segments on consumer’s buying behavior and product insights.
But, why use user segmentation and add one more thing to do to manage your data?
Because all your users are not the same.
On the elementary level, you provide for them and they pay for it. On a secondary level, your users are highly distinguished depending on what they do and who they are, and further metrics of engagement and demographics.
Customer’s buying behavior today is testament to the fact they are seeking tailor-made experiences. User segmentation allows businesses to understand precisely what the customers want from them. While it is easier to act on intuition and have a calculated guess over the choice, it’s not appropriate. Your business needs to leverage persona segmentation, CRM segmentation, data driven insights and customer behavior analytics.
The Approach for Customer Live Value Focused Segmentation
The stickiness index varies from customer to customer, the more time they spend with the product, it is more likely they are the best customers, in comparison to customers who spend bouts of time which cause negative correlation.
The Business Approach For Better Targeting for Marketing campaigns
Imagine you have on-boarded thousands of new customers recently. In order to retain the new batch of customers you will have to observe the behavior of this particular segment and keep them engaged and wire them into the habit of using your product. One of the strategies could be by using push notifications.
Likewise in the bigger scope of the matter, for example, launching a marketing campaign, you will have to target like laser to data psychographics. By making personalized marketing campaigns, companies can reduce the efforts of speaking to uninterested customers and double down on efforts which provide a higher return on investment. In the long run, this also helps in churn management.
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How to Monitor User Segmentation
1. Make Changes As Directed By Segments
By identifying the nuance between two segments of the user base, the team can identify the key points to work on. Data segmentation can help the companies use the refined information for launching contextual marketing campaigns, product management, increase user retention, change the on boarding flow and track the life stages of customers.
2. Generate Reports Using Analytics
Using data analytics products, reports for different user segments affecting the key performance indicators can be found out. This provides the team with user behavior analysis to examine if the customer is reacting well to a new feature, taking actions on social media platforms and coming closer to making a purchasing decision..
3. Track Product Usage For Each User
It is difficult to analyze the record of one’s own website, let alone tracking the product usage of each individual in your consumer base. Choosing a product analytics tool often makes it easier. For example, Box knows the respective stage of the life cycle, tracks users with a few highly optimized clicks and generates automated segments on proven formulas for behavior analysis.
The Propellor Approach To User Segmentation
The more sophisticated the method of user segmentation, the more complicated and mathematical it would be for the product managers to break it down into actionable insights. We have created Artificial intelligence tools which democratize the data for everyone on the team. In a single view dashboard, you can visualize geographically and track the users to know what stage of life cycle they are.
We have co-written customer success stories of various companies by giving birth to highly converting, targeted marketing campaigns which were enabled via the cohort creators.
We reduce the scope of user segmentation to a minimum by automating the segments on proven models which depicts the segments by the distribution of geography, gender, age and order value.
Are you ready to segment your users? Contact us.
Customers today know what they want and they would not take a lot of time to go for the next best option which is better in product engagement and retention marketing than you. So play the shot while the ball is still in your court. More precise the user segmentation, more precise will be the insights which will direct to your make better products.
To make changes to consumers today, see the clear picture of your business with Propellor.ai.