Customer segmentation and targeting

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Your digital marketing strategy has to start with the different types of customers and markets you’re targeting. We look at all the different types of segmentation.

Customer segmentation and targeting quick guide

Customer segmentation and targeting success factors

When reviewing options for targeting, we recommend these main methods

1. Customer profile characteristics (demographics) – the classic traditional marketing approach.

2. Customer value current and future. Targeting the most valuable and most growable segments in a matrix of current against future are the most common approaches

3. Customer lifecycle groups. Since our knowledge of online marketing is so strong there are great opportunities for targeting through behavioural email marketing and website personalisation.

4. Customer behaviour in response and purchase (observed and predicted). This is often known as RFM or FRAC analysis.

5. Customer multi-channel behaviour (channel preference). Grouping customers according to channel preference.

6. Customer personas including psychographics. A common approach for making websites more customer centric.

Customer segmentation and targeting definition

Segmentation shows approaches to grouping prospects and customers to deliver more relevant communications and offers and so give better response rates to these communications.

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