Understanding Customer Segmentation for Better Mobile Marketing

Users are the heart of any business. Therefore, retaining the current users and inviting the new ones are the fundamental priority of any organisation. How this can be done effectively? Using a single app for this goal is beneficial and cost-effective, rather than involving more than one apps that may waste your valuable resources and affect your target audience in terms of lack of response. Needless to say, annoying users with generic messaging is the deplorable fact that leads to “App Uninstall.”

In fact, your business needs an efficient approach to reach the right customers. In this article, we will delve into some best customer segmentation practices and engagement strategies that will certainly help you to boost your marketing campaigns.

What Do I Need to Know About Customer Segmentation?

Customer segmentation is the marketing strategy that involves dividing of target market into a subset of consumers, or the customers having similar traits so that you can even remotely reach the right audience and directly talk to them without wasting money on impressions or users who are not interested in buying your product. To avoid this situation, personalising marketing messages is indeed a valuable approach.

Below is the list of some customer segmentation types:

• Behavioral Segmentation: Simply put, this includes the attitude of the customer toward your product. Customer reaction is based on his/her actions or inaction's, spending/consumption habits, feature use, average order value, session frequency, browsing history, and so forth.
• Psychographic Segmentation: This type of segmentation usually based on personality traits, personal values, attitudes, or/and interests in buying.
• Demographic Segmentation: Using this, customers are segmented by keeping their age, gender, income, marital status, spending habits, occupation, and so on.
• Technographic Segmentation: It is based on technologies, software applications, and smartphones.
• Geographic Segmentation: Geographic segmentation, as the name implies, based on geographic areas of the customers. For example, they may belong to a specific country, state, or city of residence.

Effective Customer Segmentation Methods and Strategies?

Below are some valuable and effective customer segmentation methods and strategies:

Gaining the Trust of New Customers

First and foremost, you need to segment customers who have downloaded the app but never launched it so far, or at least launched the app very first time. To reach them completely or gain their trust, you need to engage them using external communications such as SMS, push notifications, or Emails. In addition, use engagement strategies such as sending them a welcome offer for their first purchase and introducing the key features of the app.

Monetising Active Customers

This includes the segment of customers who have launched the app many times but didn’t make any purchase so far. To invite them properly, your engagement strategies must involve discount offers based on their product browsing history.

Building Customer Habits

Though you have a lot of users on your app, retaining them is also very important using their personal habits. You need to segment users who launched your app recently, but they didn’t launch it on a daily basis. To deal with this situation, your engagement strategies should include sending in-app or push messages to attract customers with product updates or personalised content. Moreover, grab their intention by sharing advanced features and pro tips.

Up selling Converted Customers

Converting customers to your platform is undoubtedly is essential for business growth, but repeating customers is also a prerequisite to retain your customer strength. To do this, you need to create a segment of customers who have previously converted to your app but, now, their purchase ration is very low. To make them engaged again, your engagement strategies should include loyalty cards or rewards to encourage them to repeat their purchases.

Turning You Loyal Customers into the Advocates

Word-of-mouth is one of the best ways to grow your customers. Doing so will require you to create a segment of power customers who have a high frequency and session length to allow them to know how much your company encourages them and appreciate them for sharing an app. For this to be done effectively, your engagement strategies should include making them aware of their values to your company. For example, how your company is happy with their loyalty. You also need to acknowledge their contribution to your community or business. Besides, offer these power users mutual incentives so that they can even invite their friends to join your app.

Engaging the Dormant Users Again

Dormant users consist of a list of customers who joined the app but dropped off later on. To make them re-engage to your app, your engagement strategies should include sending the SMS or push notification to let them know what is new since they last time launched the app. Moreover, you also need to offer them incentives, promotions, or discounts.

The Way Forward For Customer Segmentation

Customer segmentation cannot be performed without the right platform. Customers can only be encouraged through built-in messaging.

Fortunately, Evolok offers an effective and reliable customer segmentation that engages your customers easily. Evolok's platforms even have the capability to manage a large number of customers with great accuracy. With this platform, you will be able to automatically create customer segments, from active to inactive ones, and provide you with instant insights into tactics, practices, and best channels to engage your customers.