AI Reshapes Customer Segmentation Strategies

More than 40% of marketers are trying to leverage the power of AI for customer segmentation. AI enhances the targeting, personalization, and overall engagement of a customer. It gives banks more time to engage with their clients when it is highly necessary.

What is Customer Segmentation?

At its most basic, customer segmentation is the process of separating customers into a group based on various demographics and common characteristics so businesses can market to each group more appropriately and effectively.
How to practice customer segmentation strategies for business and how to benefit from it:

How to Segment Customers?
Customer segmentation requires a business to collect specific information – data – about customers and analyze them to find patterns that can help create segments and sort them accordingly. Some of those data can be gathered from
  • Purchasing information
  • Job title,
  • Geography
  • Products purchased,
  • Age
  • Profession
Information about how the customer entered your system would also be helpful for you to segment the customer. An online marketer sending email from an opt-in email list might sort marketing messages according to the opt-in offer that brought the customer to your website.

Typical data-collecting methods include:

  • Face-to-face or telephonic interviews
  • Interactive Surveys
  • General data collection using published information about market categories
  • Using Focus groups
  • Using Customer Segments

Delivering Expected Results by Employing Customer Segmentation

Customer segmentation has become beneficial for many companies and for a good reason.
  • Delivering the right message to the right customer and at the right time has been the main goal for all businesses.
  • Marketers are working on customer segmentation strategies every day and trying to pull everything inside their hat.
  • With the help of AI & ML, Marketers can work on micro-segmentation and build multiple buyer personas.
  • Micro-segmentation means better chances of conversion rates and better targeting. It allows marketers to choose between several options when compared to the existing customer segmentation methods.

AI-driven Customer Segmentation Strategies

AI-driven business strategy should be considered as a priority for industries like banking & finance to succeed in a hyper-competitive marketplace. For instance, if you look at popular businesses like Netflix or Amazon, their customer segmentation strategy is powered by AI so that the right content or product recommendation is made every time a user logs in. They have built a benchmark of hyper-personalization due to the early implementation of AI.READ MORE

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