Seminar on Personalization and Customer Segmentation for Hyper Targeted Campaings by Ritik Yadav

Peronalization and customer segmentation


What is Customer Segmentation?

Why is Customer Segmentation Important?

Types of Segmentation?

What is Personalization?

Types of Personalization?

What is Customer Segmentation?

Customer segmentation means dividing customers into groups, or “segments,” based on traits they have in common such as age, buying habits, gender, and needs.  Customer segmentation isn’t just about reaching a new audience more effectively, though. It’s also a way to reconnect with lapsed customers and encourage new purchases by sending them carefully targeted messages.

Why is Customer Segmentation Important?

It helps you improve your customer service. By understanding your customers’ needs and wants, you’re better placed to help solve their problems.

Types of Customer Segmentation?

Demographic Segmentation

Demographic segmentation means dividing people into groups based on certain demographic factors, including age, income, marital status, and occupation.

Pros and Cons of Demographic Segmentation

On the plus side, it’s easy to use this model, and it helps you adjust your tone to target different genders and ages

The main downsides? You risk making false assumptions about a particular segment. You could also lose your brand voice by targeting such varied demographics.

Always use this customer segmentation model alongside other techniques. For example, it might be helpful to know a customer’s buying habits and values, or where they live.


Let’s say your audience is men and women aged between 30 and 65. You want to run a Tik Tok campaing to promote a new product.

61% of Tik Tok users are women.
11 percent of users are over 50.
If you only run a campaign on Tik Tok, you miss out on a huge chunk of your target audience. Perform some demographic segmentation, and you’ll know to target Facebook too, since of 50 to 64 years old use this platform.

Geographic Segmentation

geographic segmentation

A Market by Area such as cities, countries, and International region. You can also break a market down into rural, suburban, and urban areas.

How to Segment Customers Through Geographic Segmentation

Determine your segments. You can divide people by, for example, climate, culture, language, or land area.
Gather data, such as website location data and sales data, to identify the size of your community.
Send targeted messages to customers based on these segments. As an example, you might run paid ad campaings based on location, or if you’re launching an exclusive location-based product, email your target audience a promo code

Case Study


McDonald’s frequently uses geographic segmentation to target different audiences around the world. For example, here’s a burger found in McDonald’s India;
McDonald’s creates products to suit its diverse audience and tap into the flavors and products they may respond to based on geography.
This brings me to another advantage of geographic segmentation: exclusivity. Since the McDonald’s menu varies by location, each item feels exclusive, harder to acquire, and more valuable, which may increase conversions.

Psychographic Segmentation

Psychographic segmentation means forming groups based on common traits such as hobbies, lifestyle choices, personality traits, cultural beliefs, and values.
Psychographic segmentation helps you understand a customer’s psyche so you can devise highly focused, relevant campaigns.

How to use Psychographic Segmentation

Determine your ideal customer. Who are you selling to? What do they love about your products? This stage may involve some consumer research.
Choose your segments, such as hobbies, values, or personality traits.
Identify where your audience congregates.
Perform some (more) consumer research. Whether you run Instagram polls or send surveys, ask your audience what type of content they want from you.
Evaluate the data to decide how to properly target your groups.

Case Study


Patagonia, an outdoor clothing brand, knows its customers care about sustainable living. They’ve made sustainability a core part of their brand messaging:

If you ran a store like Patagonia, you could segment customers based on whether they prefer hiking or cycling and then send targeted campaigns to meet their needs while retaining this core brand message.


Technographic Segmentation

Technographic segmentation means categorizing people depending on the devices, hardware, and software they use.

How to Perform Technographic Segmentation

There are a few ways to segment your audience using this method, but here’s how I suggest you start.
Know your audience: Identify your customers, as they will determine which categories you choose.
Pick your segments: For technographic segmentation, you might group people based on the devices they use, the software they’re working with, the apps they prefer, or how they use technology.
Gather data: Collect the data you need to segment customers. You might do this by scraping websites, sending surveys, or even purchasing data from service providers.

Case study

et’s say you run a tech store. Some customers use Norton 360 for PCs. Others use Avast Security for Mac.

You split your marketing campaign by software. You send one email to Norton subscribers offering a discount on their annual subscription. You send another email to Avast customers offering the same discount for Avast.

The result? Emails that speak to your audience’s specific tech needs, which increase your chance of making conversions.

You could take it further, too. Say, through analytics, you notice your Norton PC customers are looking at mobile antivirus solutions. You could send them a discount code like this one from PCWORLD;


Behavioral Segmentation

Behavioral segmentation means grouping people together based on behavior patterns. These patterns reveal how consumers feel about your business so you can determine how to successfully reach them at every stage of the buyer’s journey.
As with other models, behavioral segmentation can be used at any point in your marketing strategy, whether it’s to revamp a landing page or send promotional emails.

How to use Behavioral segmentation?

First, identify the behavior patterns to track. There are many ways to approach this, but you might segment customers based on their:
buying stage

  • engagement
  • historical purchase history
  • purchase frequency
  • response to previous marketing campaigns

For example, say you group customers based on engagement. What counts as an “active” and “lapsed” customer varies depending on your business, but here are three groups you might have:

  • Active customers shop with you every month.
  • Infrequent customers only buy products every few months.
  • Lapsed customers haven’t purchased from you in a year.

Needs Based Segmentation