What is Customer Segmentation?


In its simplest form segmentation looks to divide large groups of data into smaller subsets with similar characteristics. The methods used in segmentation can vary based on the needs of your organisation and the availability of data. From B2B applications, by understanding how businesses or leads can split into different characteristics, to traditional B2C customer-based profiling, the key to a successful segmentation project is experience. There is rarely an off the shelf model that can answer all your needs and overlaying business objectives and strategies is fundamental to achieving actionable outcomes.

Why use Customer Segmentation?


Our clients typically adopt our segmentation services for one of the following reasons:

Customer behaviours


We are not all the same. We have different wants and needs. Segmenting your customer base allows you to understand how those needs differ from customer-to-customer. Incorporating both demographic and behavioural data, segmentation can deliver both short term tactical outcomes (e.g. targeting campaigns by customer group) and longer term strategies (e.g. new product/service development).

Website content


With a huge array of data available from your digital tools, it can be difficult to decipher the insight from the noise. With the help of machine learning clustering techniques, businesses can organise their content based on how users interact with site content. The benefits can include a greater understanding of customer behaviours, as well as learning how to develop useful content and site layouts to achieve overarching business goals.

Transactional segmentation


With a focus on revenue-driving actions, segmentation on transactional behaviours is a useful tool to have in any organisation.

From simple RFM matrices to more advanced machine learning applications, you can understand where to focus your efforts on acquiring and retaining valuable customers.

How does Lynchpin do it?


Our approach is simple. We work together with you to understand your objectives and deliver results that matter:

Focus on actionable outcomes

Working with you we will assess your business needs and select the best methods to achieve results. From identifying quick wins through tactical rule based segmentations, or developing longer term strategies using advanced modelling techniques, we have the experience and skills to partner with you through the process.

Data Driven Targeting

Using insight and segmentation can help you answer the questions of who, what, why, how and when customers are interacting with your business or products. Segmentation additionally allows you to customise your messaging and positioning to create a consistent journey for your customer, while implementing efficiencies within your organisation.

Enhancing the model

We understand the importance that data makes to a good segmentation model. With experience in building segmentation models across many organisations we understand that variety of data is important. Drawing on our own resources we can enhance your data with external data sources to plug the gap in understanding what makes your customers tick.

Test & Learn

To achieve actionable results it is essential to test the impact of different contact strategies across your segmented base and capture the outputs of this to feed back into strategies and planning. By also feeding this insight back into segmentation models you will allow for on-going improvements and continued growth and understanding of your customers needs.

Our services portfolio is broad and comprehensive. You may be unsure exactly what service is right for the outcomes you are looking for and your own situational needs. We’d be delighted to talk more about your business and how we may be able to help.

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