Why segment in 2022?

Why segment in 2022?

The arrival of personalization algorithms has made it possible to adapt offers made to each customer. In a few seconds, you can send an offer adapted to the content that a customer has viewed online, for example. Everything is done “automatically”, no need to wait for the analyses to send the right offer to the customer. As a result, many are wondering about the relevance of developing segmentation today. What’s the point of developing segmentation if our tactics are already customized?

In 2022, is it still relevant to segment?

My answer is YES… more than ever!

YES because segmentation is a powerful internal alignment tool

Segmentation helps center resources and efforts around key segments of your organization. It may be nice to have data on each customer, but to make strategic business decisions, it takes an overview. A high-level strategy is needed to identify how we can meet the needs of our customers.

YES because before running, you have to know how to walk

YES because before runningy, you have to know how to walk

It’s wrong to believe that all organizations are ready to do 1:1 personalization. There is a difference between a newsletter with generic offers and a newsletter that contains as many offers as you have customers. Making more segmented offers can be an intermediate step (in addition to journeys).

YES because customers are first and foremost consumers

And these consumers don’t buy all their products and services in one place! To get a more holistic view of your customers, it’s worth using internal data and survey data. This combination will not only allow you to better identify your opportunities, but also your areas for improvement. This type of hybrid segmentation provides a better understanding of the WHY. What are the motivations, needs and expectations of your customers? Which consumer segments have a better fit with your organization? And that’s not found in internal data.

For most businesses, a minority of customers are often responsible for the majority of sales and profits.

YES to identify your best customers

For most businesses, a minority of customers are often responsible for the majority of sales and profits. It is therefore essential to identify them and make their importance known in the organization. Subsequently, by knowing them better, you will be able to meet their expectations and thus, retain them.

YES because segmentation is a science that combines with good business knowledge

The problem is that segmenting looks so simple that you can easily create segments with a brainstorming session. But it will only be a segmentation based on intuition. And how to take action on segments that are not measurable? From experience, rigorous segmentation does not always yield the results you expect. And tell yourself that the attractive and profitable segments you want to reach, you are probably not the only ones who want them. Better to identify and measure them!

Segmentation in 2022 is still relevant. A good understanding of your customers should be the foundation of everything your business concocts in order to provide the best customer experience.

At Numea, creating segmentations is part of our tried and tested expertise. Our approach is disciplined and evidence-based. We also support you in its deployment to integrate it concretely into your business strategies. Because segmentation, as attractive as it is, is useless if it is not an integral part of your decisions!