What is a Sound Data Segmentation Strategy?

A data segmentation is a technique to divide a customer base into smaller groups of individuals that are similar in specific ways relevant to marketing, such as spending habits, demographics, location, age, gender etc. Organizations must dig deep into their data to determine what message resonate with different segments. Here are 5 steps to a sound data segmentation strategy:

Do not assume:
Look at the data with an open mind and allow it to tell you the story. The main objective of data segmentation is to produce actionable insights that improve results, not necessarily to support the status quo.

Pick a powerful starting point:
Once you open your data, you may start to see many opportunities. Pick the data & resource that will yield bigger returns based on what data told you.

Use the expertise:
Identify someone who is an expert in dealing big data. Someone who can present usable insights in an actionable format. To do so, you can also hire people or agency, or reach out to third party experts. Then guide your sales team to act on the insights provided by these experts.

Calculate resources:
Determine your desired business outcomes and then work backward to establish the resources needed to achieve those outcomes.

Stick to your strategy:
To make your strategy a success, you must commit the needed resources.

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