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10 Customer segmentation criteria to help increase conversion rates

Segmenting customers will help businesses increase conversion rates by better understanding customer needs, thereby saving marketing budgets by focusing on allocating resources efficiently and reasonably.
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Thanh Tran
06 May 2024
Phân nhóm khách hàng giúp tiết kiệm ngân sách Marketing nhờ tập trung phân bổ nguồn lực hiệu quả và hợp lý

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Customer segmentation is a top priority in any Marketing campaign. Effective grouping helps businesses increase conversion rates by better serving the needs and desires of customers, thereby saving the Marketing budget by focusing on effective and reasonable resource allocation.

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Customer grouping helps save marketing budget by focusing on allocating resources effectively and reasonably

What is customer segmentation?

Customer Segmentation is simply understood as the process of dividing the existing Customer set into subsets. These subsets share common characteristics such as  demographics, buying behavior, buying ability, interaction behavior, interests,… The goal is to identify appropriate and effective marketing strategies for each group.

The meaning of Customer segmentation

The meaning and application of customer segmentation revolves around 02 benefits:

Increase conversion rate by better serving customer needs and desires

  • With the list of existing customers that need to be converted, it’s not effective to send the same message or take the same action to satisfy all. Instead, your customers need to be classified into smaller sets with the same characteristics. Marketers will design separate campaigns tailored for each group. The goal is to deliver exactly what customers need, send the right message, to the right audience, through their preferred channels and at the right time.
  • Segmentation also helps businesses improve customer satisfaction. Through understanding each customer group with unique needs, Marketers can create incentive programs that touch the “heart” of target customers.
  • Products and services from here can also be improved and developed thanks to a deep understanding of customers in each group.

Saving Marketing budget by focusing on effective and reasonable resource allocation

  • Businesses often struggle to achieve the goal of transformation by spreading resources. This means that you are wasting your Marketing budget. Customer segmentation helps businesses have reviews to customize different Marketing efforts for different customer groups. Instead of wasting effort on non-converting customers, Marketers can target customers who receive greater value.
  • In addition, the lack of focus and lack of “special” care strategies for high-value customer groups and easy-to-convert customers… may cause the business to lose them.
  • For each customer segmentation, focus on addressing a specific need, setting a specific goal. When you focus on each group, you are targeting the right one. Marketing efforts will now convert into numbers.

What data is needed to group?

Many people often think that grouping is simply filtering an excel file. However, in reality, this is a job category that requires a lot of knowledge and supporting technology.

To start grouping, we need: of course, the Customer list. But with a list of only phone numbers and emails, grouping is… pointless. Marketers need more to be able to understand the customer’s portrait and insight.

So what data do marketers need to be able to segment customers?

Basic data

Customer Data needs more information fields starting with the most basic data such as Customer’s name, phone number, email, gender …

Minimum data

The minimum data to start grouping will be transaction data with information: order, purchase date, order value, product in the order… These will be the most important inputs.

Advanced data

Including member card data, current accumulated points… are also necessary criteria for grouping.

Online behavioral data

According to the experience of the PangoCDP team, online behavior data is a very valuable input for grouping. Specifically: the behavior of viewing the customer’s website, the products they visit a lot, advertising that leads them to the website…

After fully gathering the data, the grouping will require knowledge and experience about the product and most importantly, the understanding of the existing customer segmentation. Here are 10 suggestions for grouping customers from PangoCDP experts.

Suggest 10 criteria for customer segmentation

Shared grouping methods go from simple to complex data. Depending on the ability of the Enterprise to collect data. This will be the basis for the Marketing team to have the necessary input to start the most effective Marketing campaign.

PangoCDP • Nền tảng thống nhất dữ liệu khách hàng
PangoCDP • Nền tảng thống nhất dữ liệu khách hàng
PangoCDP • Nền tảng thống nhất dữ liệu khách hàng
PangoCDP • Nền tảng thống nhất dữ liệu khách hàng
PangoCDP • Nền tảng thống nhất dữ liệu khách hàng
PangoCDP makes it easy to group customer data

How does PangoCDP help improve Customer segmentation strategy?

Collect and merge all Customer data

PangoCDP helps collect and merge all Customer interactions at every touchpoint from online to offline. From there, provide the necessary inputs for grouping: including the most basic identifier data to more complex data about Customer behavior.

Marketer is completely proactive

With PangoCDP, with just a few simple steps, Marketers can be completely proactive in building customer segmentations according to each campaign goal without having to depend on other departments or wait for data collection from multiple parties, multiple channels…

Continuous and automatic regrouping

PangoCDP automatically re-groups divided customer segmentations continuously, updating them in real-time based on customer interactions synchronized across multiple channels. This capability helps marketers minimize the time needed to implement subsequent marketing campaigns.

Suggest grouping criteria

PangoCDP’s powerful Customer data platform will help Marketers have data-oriented grouping suggestions. From now on, grouping will no longer be subjective ideas, lacking information.

Digital Marketing Automation

Grouping technology combined with PangoCDP’s Digital Marketing Automation tool helps Marketers freely express ideas, can design, test and improve campaigns to approach and take care of each target customer group easily.

Multi-channel connection

PangoCDP integrates more than 20 connections to the most popular digital channels, helping to free Marketers from dependence on service providers, thereby being completely proactive in interacting directly with customers.

In-depth report

PangoCDP provides in-depth reporting systems from Marketing to Sales to help businesses strictly control the effectiveness of each Marketing campaign. That is the basis for improving and constantly improving the quality of customer care of the Enterprise.

Team of strategy and campaign operations advisors

The PangoCDP Advisory and Deployment Team will accompany the business throughout the implementation process as real teammates. PangoCDP experts will work with businesses to decrypt data, propose grouping strategies and improve customer experience.

Thanh Tran

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