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Customer segmentation is the process of dividing customers of your business into different segments or groups based on similar characteristics. Accordingly, your business can understand the behaviors and needs of each segment and market to them appropriately.
As we always say, generic marketing campaigns belong to the past. Hence, customer segmentation isn’t optional for your business. It will help you deliver tailored messages that resonate with your target audience. In addition, you will identify the best communication tools and the most suitable channels for the different segments.
This might seem like a lot to do. So, customer segmentation tools come to the rescue.
A customer segmentation tool is software that collects relevant customer data from different channels and organizes this data into different segments based on demographic traits, geography, or behavior.
The customer segmentation tools effortlessly handle your customer segmentation without any manual interference from your side and with minimal human error.
They are just like superheroes for e-commerce owners.
We bet you want a segmentation tool right now but don’t know where to start. Well, in this article, we have gathered 9 of the best customer segmentation tools that will accelerate the performance of your store (You will thank us later).
Best Customer Segmentation Tools To Use
1- Convertedin
When talking about customer segmentation, Convertedin is your go-to.
Convertedin is a marketing automation tool that provides e-commerce stores with auto-segmentation. Accordingly, you won’t have to manually filter and analyze your customers’ segments instead, Convertedin will provide your online business with efficient audience targeting.
By using its auto-segmentation tool, Convertedin will filter your audience based on their buying behaviors, preferences, and transactions. Hence, you will be able to deliver tailored messages to your various customer segments.
Most importantly, you will be able to identify the high-value customers that contribute the most to your e-commerce sales and then, develop a customer retention strategy.
2- Heap
By looking at the features Heap offers to e-commerce stores, it undoubtedly became at the top of our list of the best customer segmentation tools.
Heap is a digital insights platform. Well, this might sound complicated, so let’s break things down.
Whenever a customer visits your website or app, you become curious to know more about the actions they take, clicks, visits, and browsing activities. You just hit the jackpot as this is exactly what Heap provides to your e-commerce.
Accordingly, it will enable you to improve your customer experience and journey. Most importantly, Heap uses the gathered data for customer segmentation.
Simply, with Heap, you gather various customers’ behaviors and create different segments in response to this.
It’s worth mentioning that to use Heap, you don’t have to be a technical guru, as it requires minimal coding skills and fits different levels of technical expertise.
3- Insightly
Insightly is certainly one of the best customer segmentation tools in e-commerce. It examines different shoppers’ behaviors and interests on your website and builds on this data on different customer segments.
As a result, you will be able to deliver relevant messages based on the stage of the customer’s journey. These messages will resonate with customers, and increase conversion rates and sales.
Also, Insightly can be easily integrated with different business platforms, like Shopify. So, they didn’t miss a thing.
4- Klaviyo
Klaviyo is regarded as one of the best customer segmentation tools.
According to Klaviyo, with their auto-segmentation tool, your messages will reach exactly the right people.
There are plenty of factors to use for segmentation by using Klaviyo. For instance, products viewed, purchase history, location, email and SMS engagement, and discount usage history.
This means you can create a segment based on those who placed an order in the last 30 days or those who have used your discount code.
In addition, the segments are updated automatically as customers interact with your website to ensure constant delivery of relevant messages. These segments are then used for omnichannel marketing.
Well, Klaviyo said that you set the rules, and they will handle the rest.
5- Optimove
Optimove is a CRM marketing tool that includes an AI-driven technology that it utilizes for delivering segmentation capabilities.
Optimove is very unique in the way it handles auto-segmentation. That’s why it’s on our list of the best customer segmentation tools.
Optimove gathers all the available data to develop highly accurate segmentation by creating so-called micro-segments. Yet, what sets Optimove apart from other tools is that it constantly focuses on the change in each segment.
This means that throughout time, customers may move among segments, and this is exactly what Optimove focuses on: the customer paths.
Such a feature makes Optimove one of the most accurate customer segmentation tools. In addition, it focuses on customer lifetime value during segmentation to predict customer reactions in future marketing messages.
Thus, it helps in delivering personalized messages that increase customer engagement and retention.
6- Brandwatch
Brandwatch raises the bar for other customer segmentation tools. It doesn’t only divide your existing customers into segments but also helps identify new potential segments.
It monitors the mentions and conversations started on social media channels and blogs to gather any information relevant to your brand. Then, it combines such information with some market research to identify the different customer segments relevant to your business.
7- Kissmetrics
Kissmetrics is regarded by online businesses as one of the best customer segmentation tools. It’s a marketing and product analytics tool that makes it super easy to segment audiences and gather information in a central dashboard space.
You can rely on Kissmetrics to divide shoppers based on various factors like geography, demography, behavior or even spending. For example, you can monitor the highest spenders to determine how you acquired them and repeat the process.
Hence, you can create a separate segment of the highest spenders who are of the highest value. Eventually, this will enable your e-commerce to increase revenues.
Also, Kissmetrics is very easy to use and can be integrated into the most commonly used e-commerce websites like Shopify, Magento, and Marketo.
8- Segment
Segment is also one of the best customer segmentation tools that you have to check out.
Segment is a customer data platform which means it collects events from your mobile app and website to provide a complete data toolkit. In other words, it gathers data from multiple touchpoints.
Segment focuses on customers' behavior patterns and divides them accordingly. In addition, It’s built to address customer segmentation across various channels.
Hence, it creates dynamic segments based on real-time customer data. As a result, your e-commerce can deliver personalized, omnichannel campaigns to a target audience.
9- HubSpot
Hubspot is a widely known CRM platform that offers a powerful segmentation tool as well.
Its segmentation tool divides shoppers based on various segments like demographics, position in the customer lifecycle, behavior - such as clicks, visits, and interactions - and interests.
As a result, you will be able to execute various campaigns across different channels based on the previously created segments. The channels can be social media, emails, and web content.
10- Mailchimp
MailChimp makes it much easier for enterprises to send the right messages to a targeted audience that matters most for the marketing campaign. The software allows you to customize and filter your audience preference based on:
- Sign up source
- Location
- Device type
The software comes with in-built tools to monitor purchase history and click-through rates on different devices (android, iPhone, and desktop). According to MailChimp reports, customer-segmented email campaigns generate 48% click-through rates compared to unsegmented emails.
Final Thoughts
It goes without saying that customer segmentation is one of the key elements for the success of your e-commerce. It helps you gain a better understanding of your customers, their needs, and preferences, which reflects in delivering tailored messages.
We are not exaggerating when we tell you that you have a gem right in your hands. Yes, we are a bit narcissistic and the gem we are speaking about is actually this article.
So, there are no excuses to start your customer segmentation right away.
