Build Customer Experience through Customer Segmentation

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Customer segmentation will allow you to target specific groups of customers effectively

When it comes to interacting with customer service, your customers will choose the channels with which they are most comfortable and provides them with the best customer experience. Some customers choose to purchase products at a store, and when it comes time to engage with customer service, they may choose to inquire in-person, make a phone call, or even <gasp!> write a letter. Yes, people still write letters. Others may choose to purchase products online, keeping the interaction with customer service all digital and inquire with question via email, live chat, Twitter, or Facebook. There are even those customers that choose to purchase a product online, but prefer the interaction of a phone call with a live customer service representative, or there are those customers that purchase in a store, but prefer to interact with customer service online. Your customers’ customer service needs are diverse, so you need to accommodate.

All customers are segmented into categories and you must address their customer service needs accordingly. Divide your customer base into groups of individuals that are similar in specific ways relevant to your target markets, such as gender, age, interests, spending behavior, etc. Customer segmentation will allow you to target specific groups of customers effectively. Recognizing the different types of customers you have is an important part of creating a successful customer experience program containing strategies that result in a personalized experience for each segment.

Segmented groups can be defined in a number of ways, including:

  • Geographic: country, state, region, city
  • Behavioral: product purchased, frequency of purchase
  • Demographic: gender, age, income, occupation
  • Psychographic:  lifestyle, activities, interests

Once customer segmentation has been completed, you can confirm your customer groups by administering online surveys to random samples of each customer group. Confirm their location and demographics, and ask them about their preferences and behavior. By doing this, you will confirm that the characteristics are different among the groups that you have defined  – which confirms that you have defined the groups correctly. Secondly, you will start to learn about the behavior of each segment and observe how each group interacts with your organization.

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