Customer profiling and segmentation tools

Customer profiling and segmentation tools

By Katy Raines


Do you want your marketing budget to stretch further? Do you want to improve the effectiveness of your marketing campaign? Do you want to get audiences to visit more frequently? If you answered yes to any of those then this guide will help make your marketing budget stretch further with more effective campaigns that increase frequency of audience attendance.

Most organisations don’t have the resources to tell the whole world about what they do, and even the big global corporations would profile and segment before undertaking any promotion e.g. Coca Cola probably wouldn’t be advertising heavily in areas with a big retired population, as their product is largely aimed at the youth market.

By understanding more about your customers and talking to different segments in the most relevant way (possibly with different product offerings) it is more likely that they will respond and make a purchase. This means that your small marketing budget can go a lot further, as you’re increasing the ‘hit’ rate of the people you are talking to. Click The Lowry for an example.

There is another key benefit to talking to your customers in a more targeted way – you will build better relationships with them. By talking to the customer in the language they prefer, about only the things they are interested in, via the communication channel they like to use, they are likely to feel closer to you, and have a greater sense of belonging to your organisation. This can help in building their psychological loyalty, as well as their behavioural loyalty, which can demonstrate itself in their advocacy of your organisation to others they meet, as much as by increased visits or purchases.

Customer profiling and segmentation have become ever more popular in a world full of customer databases and fast-changing IT systems. However, they are not the sole domain of the organisation with a database. Nor are they complicated concepts to implement. In the arts, it’s ever more important to understand what your customers are like, and to make your small marketing spend as effective as possible – customer profiling and segmentation can help you with both of these things.

Resource type: Guide/tools | Published: 2012