Let’s be honest — we’re all bothered by poor customer experience. Even if we don’t say it, it will likely impact our opinion of the company at hand. A great customer experience affects us in a similar way. Can you remember a time you walked away smiling after getting great service? And, because of that experience, have used the same company again? Our digital experiences are the same. With the power of online reviews, customer experience is more important than ever. According to American Express, we tell an average of 15 people about a poor experience. In contrast, we tell 11 about a good experience.
As a business, getting it right is imperative! Your customer’s journey starts long before they buy from you. Everything they have read, seen, or heard about your brand has led them to your site. Once they land, it is important to make their experience as personal as you can. That’s where industry segmentation plays a vital role.
Different ways of segmenting customer groups
There are various ways to segment customers. As a b2b organization, it is beneficial to start with industry segmentation. Marketers can use this in conjunction with other customer segmentation criteria, too. Let’s look at what industry segmentation is and how it works. It’s important to remember who you are selling to. If your customers are businesses; it’s their decision makers.
Ask yourself: “Who is my audience?”
Let’s say you work with the automotive industry. That’s a great start! But, it’s only the first step. ‘Automotive’ is a broad term and doesn’t help define much. The same goes for industries like ‘finance’, ‘environment’, or even ‘fast-food’. Within each of these industries is a multitude of industry segments. Essentially, these are sub-groups that make up the wider industry. Getting down to the specifics will help take your marketing strategy to the skies.
Sticking with the automotive example, let’s break it down further. There are so many ‘sub-groups’ that make up this industry. Eco-conscious; luxury; off-road vehicles; family run-arounds; sports cars — to name but a few. These smaller segments of the industry are very different, and so will all have different wants and needs. The products they want from you will vary. And, you may even find some of these segments don’t apply to you anymore.
So, what does this have to do with customer experience?
The more personalized the experience, the better. And that includes business clients too. By personalizing marketing material, content and websites, customers feel valued. The easier their experience, the happier they’ll be. And, the demand for personalization is growing according to Instapage. By 2020, 51% of us expect companies to make relevant suggestions before they make contact.
Now we understand how to segment by industry, let’s take it a step further. How else can we split our audience to make their experience more positive?
Customer segmentation criteria
There are four primary ways marketers segment an audience. They each have their own benefits. You can find out more about the most popular segmentation approaches here. Let’s take a brief look at each:
This sees audiences segmented based on their behavior throughout their buyer journey. You can break this down by purchase behavior, loyalty, usage, timing or benefits. We all behave in different ways before hitting ‘buy now’. And business decision makers are no exception. You can find out more about behavioral segmentation here.
This divides markets based on groups that make up the population — like age, gender, income, etc. For b2b organizations, this could include business age, revenue, and demographics of decision makers. It works to an extent but it’s important to remember similar groups won’t always have the same needs.
Segmenting by location looks at where a customer is based. It considers time-zones, climate, social factors and competition in that area. It is straight-forward, and the data is easy to find. It is a good start but doesn’t offer a lot of insight. So, it works best alongside another segmentation approach.
This delves into the minds of customers, and you can apply it to individuals and businesses. Psychography looks at what your customers are like. This includes values, beliefs and interests. Modern-day consumers tend to be more eco-conscious, for example.
The advantages of market segmentation for customer experience
Market segmentation is a great way to improve customer experience. The better the customer experience, the more likely they are to return. Customer loyalty improves reputation, enhances CRO and increases ROI. Acquiring a new customer costs 7 times more than maintaining one, according to Kapost. There are so many benefits to using segmentation to enhance CX. Here are some key advantages:
- It’s a step towards personalization; which should be every marketer’s end goal.
- It helps you get to know your audience.
- Once you know your audience, you can give them exactly what they need.
- You can make their experience positive, easy and more enjoyable.
- Remember — people talk. Good and bad experiences will usually find their way to online spaces.
- Tailored communications keep audiences engaged — from marketing emails to product recommendations.
- It saves marketers time, saves businesses money, and improves customer satisfaction.
- Businesses that provide great CX reap the rewards.
Customer experience should be a key part of your marketing strategy. Inbound marketing is now favored over outbound, and personalization is the expectation. Tailoring your marketing communications is a crucial first step towards this. Website personalization is the future of customer experience. Think Amazon. It knows who you are, what you like, and makes recommendations based on previous behavior. This makes your life easier and increases your chances of returning. Personalized prompts, recommendations and marketing messages have likely increased what you spent, too.
Businesses should get the same level of service when it comes to online purchases. Webeo is a global leader in website personalization and enables businesses to easily creates bespoke customer experiences. The leading software tailors the appearance, language and content of a site to meet visitors’ needs. From product recommendations to personalized messages, Webeo ensures the ultimate customer experience. To find out more, and see the power of personalization for yourself, request a demonstration today!