5 key strategies to harness the power of customer segmentation for effective brand positioning


In the present times, research in the case of customer segmentation has reached its zenith. Customer segmentation, from its inception, has benefited the research community in one way or the other. However, the adoption of customer segmentation in commercial domains has witnessed a sort of hesitancy. This is primarily due to two reasons. The first reason is the attitude of the commercial platforms to carry out local business without the need for segmentation. The second reason is primarily the lack of outreach to a new category of customers that can be targeted only by proper segmentation.

To understand customer segmentation better in terms of research in the modern industry, it is important to understand the process of product development. Modern research teams collect large sets of data from the customers and use this valuable feedback for product design and predictive analytics. This helps them to come up with modern and innovative products that are not just improvisation of the older versions but are a novel category of their own.

The above discussion points out that customer segmentation is indispensable for carrying out product design and research. At the same time, it is pivotal for brand positioning. Let us now highlight the five key strategies to harness the power of customer segmentation for effective brand positioning.

Induction of lucidity in information

The greatest benefit of customer segmentation is that it helps in the induction of lucidity into our available information. The analysis of the various facets of information enables us to process strategic data and make it available to various stakeholders. This is also helpful in the segment-wise processing of information. If the information is lucid, it helps us to form infographics to analyze the interests, needs, and requirements of our customers. It also acts as a guide to segregate the various segments of our information into clustered portfolios.

Prioritization of segments

Customer segmentation has also helped in the prioritization of various segments which has helped in the effective targeting of customers. The creation of the segment prioritization index is a major achievement when it comes to customer segmentation. Based on various categories and characteristics, this index helps in the grouping of customers and tracking future transactions.

Effective and customized targeting

Active and customized targeting is only possible with the help of specific algorithms which help in the classification of customers. The variables that we choose for segmenting customers must be based on valid and reliable data sets. These data sets can then be utilized to put the customers into various categories. These categories allow the marketing team to effectively communicate with customers and target them with specific products. These categories also help the marketing team to draw a prospective list of customers with higher response rates. Another benefit of effective and customized targeting is that the sales team can reach prospective customers with the help of tailored messages which can help in effective brand positioning.

Classification of visitors

Classification of visitors enables the marketing team to reach out to prospective customers with a new set of products in the future. Based on interest shown in a particular product, the marketing team can target that segment of customers with a similar set of items. Customers can also be classified based on the value of the products purchased. This gives an insight into the range of products which can be offered to customers. The real-time classification also helps in devising appropriate strategies for different sets of customers.

Development of customer portfolios

Sometimes there is a need to go beyond statistics and provide the marketing teams with a detailed history of the customer. The development of customer portfolios gives a detailed history of the transactions including the set of products that have been most frequently bought. Customer personas also help internal teams to proceed in a particular direction during promotional campaigns. This portfolio also forms a hotbed of research for the product development teams that work on the development of new and innovative products for a particular genre of customers. Customer portfolios also help in determining the needs and lifestyle of a particular set of customers. This information serves as a lifeline for sales and marketing teams.

Concluding remarks

In one word, customer segmentation studies are not only pivotal for commercial organizations but are important for marketing researchers as well. Such studies and strategies need to be promoted in the long run for deriving actionable insights into customer journeys.

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Data Science | Big-Data | Product Engineering @ Algoscale