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Segmentation and Modelling: Significant tools in understanding your customer base

Not all customers are the same, the approach to segmentation shouldn't be either.

What is Segmentation?

Market segmentation is the practice of dividing your target market into approachable groups in order to better understand your target market.


You have many customers, they come to you to buy your products and services but do so for different reasons. Using segmentations can help your customer understanding through grouping similar types of customers together, giving you the ability to gain a deep understanding of the segment.

It is this understanding that gives you the power to communicate with your customers in a targeted and relevant way. If you understand more about what makes them tick, you can say the right thing at the right time. Effective marketing is all about relevancy, which good segmentation helps you to achieve.

Great segmentation takes it further and helps you with getting your timing and communication channels right too. It helps you make the most of your budget, getting the best response rate and ROI. Importantly, your customers feel more understood and that you recognise them as an individual, not just a generic contact.

Segmenting can be simple or complex, it is about finding out what approach works for your business and your customers. Quite simply, they are tools for understanding buyer behaviour, the triggers for purchase and personalising the experience you offer your customer.


Adding modelling into the data preparation stage can add further depth and understanding. In a perfect world all data will be present and correct, but this is rarely the case and using modelling techniques to fill gaps in data can be useful in developing segmentations and personalisation strategies.

Modelling can also include the processes and calculations that define campaigns and review their effectiveness. Useful models are based in data and help organisations to understand their customers, their organisation, their touchpoints and customer experiences. The best value to be gained from modelling is to have a clear view of your objective and then work out how the resulting model can help to deliver on your objectives.

Targeted sales and marketing activity starts by being more effective with your resources but ends with your customers getting relevant communications at the right time, feeling more understood and feeling more valued. They get a better experience from you, which leads to loyalty and growth.

The combination of segmentation and modelling can create powerful assets that drive activity, improving your ability to deliver personalised and relevant communications.

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