Customer segmentation is a powerful marketing tool, but like any other process, it can be subject to error. In this section, we'll look at common customer segmentation mistakes and provide tips on how to avoid them, using examples from a variety of industries.
Common mistakes in customer segmentation:
Insufficient research: The mistake of not researching your customer bulgaria phone number library base enough can lead to incorrect segmentation. For example, imagine an online clothing store that does not take into account the geographic preferences of its customers. This can lead to the wrong product range in different regions.
Segmenting too finely: Creating segments that are too narrow can lead to unnecessary complexity and cost in managing them. For example, a restaurant might segment customers by day of the week, but if this doesn't impact the menu or promotions, it's unnecessary complexity.
Ignoring Change: Some companies segment customers but then fail to update their segments, ignoring changes in customer behavior.
Limited data sources: Using limited data sources can distort the picture of customers. For example, a mobile travel app might segment customers based only on their booking history, but miss out on information about which countries they are currently researching in the planning stage.
Excluding existing customers: Don’t focus only on acquiring new customers and forget about existing ones. For example, an online streaming platform may focus only on acquiring new subscribers and miss out on the opportunity to create personalized content for its existing subscribers.
Not taking seasonal factors into account: Not taking seasonal changes in customer behavior into account can lead to incorrect conclusions. For example, a company selling ski products must adapt segmentation and marketing strategies to the season and location.