Marketing
Unveiling Hidden Customer Segmentation for Hyper-Personalization
In as much as you may hear about personalization, you must be remembering the messages you receive with your name in it. Yet, have you ever heard of hyper-personalization? The only difference from personalization is that here both the information is more specific and the customer segmentation is narrower. For instance like the area where the customer resides, climate prevailing in the area where the customer lives, or any other practice which regular customers indulge in.
The Evolution of Customer Segmentation
Before the advent of digital marketing we knew that marketing was performing and distributing across the globe without any techniques that can segregate people. However, as time goes by, innovation also develops, marketing is then carried out based on certain segmentation. Then what is the difference between traditional and advanced customer segmentation?
Traditional vs. advanced customer segmentation
Traditionally, customers are segmented based on several criteria, namely demographics, geography, psychographics and customer behavior. The process is often done manually and does not change over time. So that personalization is only limited to groups that are included in the general segmentation.
Meanwhile, advanced customer segmentation further develops traditional segmentation with the help of technology. So that the marketing team can access customer data in real time. The segmentation sources are also diverse, such as social media, purchase history, and other online interactions.
In advanced customer segmentation, the marketing team can predict patterns and trends that may occur because of the existence of accurate data in real time. In fact, currently the segmentation process has been supported by AI and machine learning, so that the identification process becomes more specific, automatic and dynamic. The data obtained is also more in-depth, such as online behavior, search history, to customer interactions with businesses online
The rising of hyper-personalization in marketing
Nowadays, customers who want relevant and tailored marketing are increasing. Because customers are getting smarter and always doing research before making a purchase, relevant marketing is considered to be able to provide additional information to convince them.
Thus, businesses are increasingly competitive in creating targeted marketing strategies. With the aim of getting more customers interested and involved. The more customers involved, the higher the conversion value.
Therefore, businesses need advanced customer segmentation much more, since it is:
- Provide more in-depth information to build a comprehend customer persona.
- Compile data from many sources, reminiscent of nowadays marketing that uses more than one channel.
- Predict analysis of customers’ needs and preferences real-time through the algorithm of machine learning.
- Give a unique customer experience since it depicts customer’s preferences.
Using Technology for Identifying Hidden Customer Segments
As we have discussed before, to get in-depth customer segmentation we need the help of technology such as CRM, AI, machine learning, and several other analytical tools. Let’s discuss it in more depth.
CRM as the Backbone of Data-Driven Segmentation
CRM software is the first technology that plays a major role in the customer segmentation process. Its function of storing data centrally makes it the most efficient customer data storage center. Even if the marketing team uses many marketing media, integration with CRM can unite all incoming messages into one platform. This facilitates the process of differentiating customer segments from various channels.
Although initially CRM only functioned in managing business relationships with customers, now, its function has expanded and become more sophisticated. Its integration is also more diverse to adjust to changing market trends.
Using AI and Machine Learning in Customer Segmentation
Algorithms in AI and Machine Learning integrated with CRM, enabling the process of customer segmentation to be automated. Your team only needs to adjust the criteria that will divide the customers.
For example, the marketing team wants to divide customers based on interactions on the WhatsApp application. Then the team can segment them into several criteria, namely customers with high engagement levels, customers who read messages most often, and customers who never open the messages. In this way, the team can focus more on determining the right strategy in handling each segment.
In addition, AI and machine learning can also predict customer behavior according to historical data so that the team can think of the most effective segmentation strategy and one that suits market conditions.
Advanced Analytical Tools for Deeper Insights
CRM alone is capable of analyzing all stored customer data. However, to optimize its performance, you can integrate it with many data analysis technologies. Thus, you can analyze customer data on a large scale. You can also share forms integrated into CRM to collect customer feedback on the products and services you offer.
Moreover, for the purpose of marketing development, it is also possible to evaluate the sentiment of customers on social media; this feature is usually offered in social media platforms to monitor the result of the content that has been shared.
Building Hyper-Personalized Marketing Campaigns with Hidden Segments
Moving on to hyper-personalization, using technology-driven segmentation, messages could be adopted according to very precise targets.
Crafting hyper-personalized content and offers
Thus, hyper-personalized messages are different from other types of more customary guerrilla marketing emails that directly personalize the message but not necessarily the content. It is crucial for marketers to keep in their minds all the degrees in which results are valuable to customers.
For instance, a baby supplies firm satisfies the hyper-personalization of niche targeting that focuses on environmentally conscious parents, marketers have to present content that is aligned towards environmental care and sustainability.
Enhancing Customer Experience Through Tailored Journeys
In addition to marketing techniques with content, hyper-personalization tactics can also be applied throughout the customer journey. With this tactic, you can present a unique experience when customers start interacting with your business, until they become loyal customers. Of course, this requires strong data analysis to understand each customer and make them feel appreciated.
You can also use CRM with WhatsApp integration so that the customer journey with your business can run seamlessly. This tactic also needs to be balanced with continuous development based on customer responses to the experiences you have provided.
Balancing Personalization with Data Privacy
Personalization strategies imply that a lot of customer data will be used by businesses in their marketing processes. This is why it also becomes necessary for the businesses to protect customer data as well. This is the reason that dictates trust of customers to your business caravan. In other words, patients should be informed about the rules that have been set and should be alerted on how their data will be used.
This indicates that customer segmentation is critical to the development of competitive advantage. Market segmentation enables organizations to classify customers based on characteristic features that helps in defining what kind of marketing techniques, products and services to deliver to their customers.
AI and machine learning, as applied to the improved advanced segmentation, make the customer data analysis more effective and allow for superior customer profile personalization that can create new business opportunities and enhance customer retention.
University of Houston graduate with 5 years of blogging experience, excelling in content strategy, SEO, and audience engagement. Connect with me on LinkedIn.
