customer segmentation: using behaviors to drive data-driven marketing

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Customer Segmentation: Using Behaviors to Drive Data-Driven

Marketing

Written By: Mark Price,Managing Partner of M Squared

Group

Contact Us: 952.746.3230

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About M Squared Group

Contact Us: 952.746.3230

info@msquaredgroup.comhttp://www.msquaredgroup.com/

M Squared Group is a data-driven marketing consulting firm. We help our clients build measurable, long-term customer relationships and revenue streams using data-driven insights and targeted customer communications and services. Our approach is fast, practical and financially-driven.

3Contact Us: 952.746.3230

When it comes to customer segmentation, the saying "actions speak louder than words” has never been more true.

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In trying to understand customers, both words

and actions have a role.

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When it comes to

driving revenue,

it is all about actions.

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Segmenting by attitudes rather than actions creates a problem when marketers try to target a specific group...

The question they can’t answer is:

Who are the specific customers who have those attitudes?

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The best database marketers follow these three specific segmentation rules: 1. Change needs

to be measured to be effective. 

2. People are as they act, not as they say. 

3. The more you know, the more you know.

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If the goal is to change behaviors,

Group customers with similar behaviors rather than attitudes together.

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1.Measure what you want to change.

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Customers who claim to have the same beliefs frequently differ in their purchases.  

Behavior is the one factor that cannot be debated.

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2. People are as they act, not as they say.

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Improve your targeting by incorporating their website behavior, email open/click behavior and so on. 

Don't stop with customer purchase behavior with your company,

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3. The more you know, the more you know.

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It does not matter if the customer

is:Hispanic or WhiteYoung or old Rural or urban

Customers who purchase and behave the same are effectively

the same from a marketing standpoint.

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Leveraging behavior-based segmentation builds:

Stronger

Long-lasting

Profitable relationships

This is the end goal of data-driven marketing

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Please check out my post  "Customer Segmentation: So Much Analysis, So Few Results“  if you want to learn more about making customer segmentation effective.

Website: http://www.msquaredgroup.com/Blog: http://blog.msquaredgroup.com/blogTwitter: MarkPriceMSGLinkedIn: www.linkedin.com/in/markpricemsg/

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