Data Driven Marketing For Dummies

Chapter 7

Birds of a Feather Buy Together: Segmenting Your Customers

In This Chapter

Understanding demographic data

Grouping customers by age, income, lifestage, lifestyle, and geographic data

Using geographic data

Avoiding legal landmines regarding data

Your fundamental goal as a database marketer is to take advantage of information you have on your customers and use it to your benefit. You want to understand who is likely to buy and how to entice them to do so. You want to speak to them in a relevant way. You want to show them that you understand their particular needs and are able to meet them.

But your customers are not all the same. You will find substantial variation in virtually every customer trait that you track on your database. You will, however, be able to find pockets of customers who share similar traits. These pockets are frequently referred to as segments.

By grouping your customers into segments, you can focus separately on how best to serve each segment. Understanding the common traits of each segment will help you to define your offer, your message, your marketing ...