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Customer Segmentation

Training Consulting AI Software


Marketing teams often rely on a handful of simple marketer-defined segments to drive their marketing efforts. Unfortunately, what is easy for the marketer is not always best for the customer. Marketing content and offers are targeted at the large groups based on simple attributes like location or income, and most people in the group are not receptive to these marketing messages leading to low conversion rates, poor customer satisfaction and customer churn.


AI based machine learning models can easily segment customers using a much wider variety of data including browsing behavior, prior purchases, demographics, household data from third parties and more. The outcome is much smaller groups of customers with clearly defined attributes that are customer-based including common characteristics, interest and intent. This information allows marketers to develop content and campaigns to target the most valuable or receptive segments for a given message or product. This advanced targeting approach focuses marketing creative resources on the right messages for the most valuable customers which yields higher conversion rates and higher revenues from marketing campaigns and reduced waste.