The success of your digital business depends entirely on how well you know your customers. Understanding who they are, what they need in the moment and what their next step will be is the only way to ensure your decisions turn into actions with real impact on your business.
Having advanced marketing segmentation is increasingly important. The good news is it is becoming increasingly accessible — thanks, among other things, to AI. Traditional segmentation by age, gender or location is no longer enough, which is why new technologies allow you to create more dynamic and predictive segments fully based on data.
In this article we explain the importance of good segmentation for your digital business and how you can leverage your data to understand how your customers are going to behave at any given moment — information that will be worth its weight in gold for your marketing department.
The precision with which you design your marketing campaigns and actions depends largely on the type of segmentation you use. The most classic approach (based solely on socio-demographic criteria) relies on a generic and descriptive profile of your customers, assuming their needs and proposing initiatives that try to reach them by targeting profiles that more or less resemble them.
Advanced segmentation in marketing, on the other hand, is based on data. Data that allows you not only to "imagine" your customer, but also to know exactly how they behave, what decisions they make and, in many cases, the next steps they will take. In other words: you know each customer precisely and how you should reach them.
Thanks to new technologies like AI and its data processing and prediction capabilities, clusters or segments are becoming increasingly precise. AI can divide audiences more specifically, defining even more granular criteria and anticipating what may happen in the near term. And that allows you to be more agile in your decisions.
The major change AI brought to the world of marketing and digital business is the ability to process large amounts of data with almost no effort. And that capacity has also come with the ability to identify insights that escape the human eye.
The use of algorithms that identify hidden patterns or follow less apparent criteria means your segmentation takes into account variables that until now were being ignored. The context in which your marketing actions take place, the actual behaviour of each user and even their intent or preferences.
In short, AI allows you to take all the data into account without having to sacrifice variables or information sources. Thanks to it you can combine information, cross-reference data and draw more strategic conclusions without having to dedicate 100% of your time to it.
One of the great advantages of advanced marketing segmentation is the ability to anticipate your users' behaviour and group them according to their (highly probable) actions. In fact, thanks to the predictive power of AI, you can have different user segments to target in completely different ways.
This predictive segmentation allows you to sharpen your aim even further, designing more precise actions and dedicating resources and effort to those users who are truly worth it. AI allows you to identify users based on their likely next action (for example, those who are about to churn) and even based on their value to your business (those who, according to the algorithm, will generate more sales in the long run).
Good segmentation is not a one-off thing. It is a continuous process in which your different clusters must advance at the pace of your business and adapt to changes in your users' behaviour. And to achieve that, you need dynamic segmentation that is always up to date.
The good news is that this is already a reality (even before AI arrived). Thanks to various Business Intelligence initiatives, you can already make your segments update and evolve in real time based on your users' interactions. That is: if a user makes a purchase, they automatically move to the corresponding segment.
Thanks to AI, this dynamic segmentation is going even further. Today it is easy to have algorithms that not only update your segments but create and propose new ones based on changes that occur in your business. Something truly valuable for reducing errors when planning campaigns.
The quality of your marketing results is closely linked to how you segment your customers. So advanced marketing segmentation is synonymous with advanced marketing that has a major impact on the business. And not just because you will sell more — but because you will sell better.
Implementing AI in your segmentation lets you invest your time and money more wisely. By knowing more about your users you can design more specific and tailored strategies, increasing the efficiency and ROI of every action. That personalisation will also allow you to gradually adjust your investment or the actions themselves, without having to do everything manually.
Finally, good segmentation that includes AI will mean you know your users far more deeply and from perspectives that may have been invisible to you until now. This will lead you to factor in inputs from other teams like Customer Experience or Sales more, and as a result, work in a more aligned way.
Advanced segmentation that includes AI pays off. Investing in getting to know your users better, dividing them more strategically and designing marketing actions that are exclusively tailored to them has a real and measurable impact on your business. You improve conversion, reduce costs and increase retention.
One example of the importance of investing in segmentation is one of our clients: GrandValira. The largest ski resort in the Pyrenees came to Boost with the need to organise their web analytics in order to sell more. But one of the actions we identified as a priority was to thoroughly analyse their users' behaviour within the website in order to target them with tailored marketing actions. Thanks to this new segmentation they not only improved their campaigns, but also identified which campaigns generated the most ROI. The result? +276,000 euros in additional revenue in just 3 months.
Moving from classic to advanced segmentation is a complete process in which not only your tools need to change, but also the way you understand your users and the mindset of your team. New segmentation requires greater flexibility, agility and, above all, open-mindedness.
The first and most important step is to carry out an audit of your web analytics. You need to review the quality and reliability of the data available to you to know whether your new segmentation can depend on it or not. If necessary, you may need to redesign the way you collect and store data.
Once you are confident you can trust your data, it is important to select the right segmentation tools. There are many and all are valid, but you need to find the one that fits the nature of your business. Whether it is an ecommerce, a subscription model... Depending on your needs you will find AI-powered tools that are more or less useful.
And finally, remember that advanced segmentation is dynamic segmentation (and so are the processes). Make sure to carry out periodic audits and reviews to ensure your new segmentation keeps pace with your business and adapts to its evolution.
Digital businesses capable of reacting with agility and offering customers increasingly personalised experiences are those that will survive in an ever more changing and demanding environment. That is why it is so important not to fall behind and to invest in advanced marketing segmentation.
Being more predictive, investing more intelligently and designing segments that evolve at the pace of the business and its customers should be a priority for all those who want to improve their ROI and not lose customers along the way. Especially in an environment that seems to be heading towards a cookieless future 100% dependent on first-party data.
Are you already ready to discover which customer segments have the most potential? Book a call with our team and optimise your marketing strategy with AI and good segmentation.
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