2 Oct 2022| ONPASSIVE
AI Reshapes Customer Segmentation Strategies
More than 40% of marketers are trying to leverage the power of AI for customer segmentation. AI enhances the targeting, personalization, and overall engagement of a customer. It gives banks more time to engage with their clients when it is highly necessary.
At its most basic, customer segmentation is the process of separating customers into a group based on various demographics and common characteristics so businesses can market to each group more appropriately and effectively.
How to practice customer segmentation strategies for business and how to benefit from it:
Customer segmentation requires a business to collect specific information – data – about customers and analyze them to find patterns that can help create segments and sort them accordingly. Some of those data can be gathered from
Information about how the customer entered your system would also be helpful for you to segment the customer. An online marketer sending email from an opt-in email list might sort marketing messages according to the opt-in offer that brought the customer to your website.
Customer segmentation has become beneficial for many companies and for a good reason.
AI-driven business strategy should be considered as a priority for industries like banking & finance to succeed in a hyper-competitive marketplace. For instance, if you look at popular businesses like Netflix or Amazon, their customer segmentation strategy is powered by AI so that the right content or product recommendation is made every time a user logs in. They have built a benchmark of hyper-personalization due to the early implementation of AI.
Other sectors like banks are still on the verge of adopting AI, and part of the reason for their reluctance towards AI is the lack of a global data repository.
One of the best current customer segmentation exercises that can tangibly impact your operating results is by:
Employing a customer segmentation research process is the first step toward uplifting a growing company’s commitments. Ultimately, best customer segmentation can help your business define its ideal customers, find the segments that those customers belong to, and boost the overall organizational focus.
Customer segmentation can be adopted by all businesses regardless of size or industry. No matter they sell online or in person, customer segmentation can help in every way. It begins with collecting and analyzing data and ends with working on the information gathered in a way that is helpful and effective for both customer and business.
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Tags: Technology Artificial Intelligence