Slice and Dice: 3 Reasons Why you Need to Segment Your CX Data
April 6, 2015
You’ve successfully implemented a customer experience management program and the data starts rolling in. Congratulations – you’ve taken the largest and hardest step towards improving your brand! But now, what you do with that data could make or break your CEM success. Breaking down customer data into demographic segments is an important part of understanding what your customers are trying to tell you. Age, gender, and geographic location can be a lot more than just numbers on a page.
Customers today expect a personalized experience from companies. They oftentimes have countless options and their individual experience with each brand can determine the success of a sale. However, it’s impossible to create a relevant experience without knowing who your customers are first. Segmenting your customer experience data allows you to understand your customer beyond just numbers. Here’s how:
Segmentation can provide insight into how your customers are using your product and what they want to get out of it. For example, if you notice that some products are being used more widely than others, you can delve in deeper to discover if people are unaware of other offerings or unsure how to use them. It can also shed light on problem areas that may not be obvious when looking at your data as a whole.
For example, a large retail bank had generally positive customer satisfaction rates. However, when they sliced their data by age, they noticed that older Americans were struggling with mobile deposits. By looking at their customer experience data, they were able to determine that this demographic was struggling to hold their phone steady enough to take the picture. The banks product team decided to offer a video option for check deposits, freeing people from taking the perfect picture.
Segmentation allows you to identify which customers are providing you with the most value. This in turn allows for you to focus on continuing to mine that group’s data and continuing to satisfy them, but then also to identify weak points in other segments. For example, if your product is extremely popular among millennials, you can continue to develop advertising campaigns and product improvements that you know will resonate with that group. However, it also opens up the opportunity to develop new techniques to target other generations and expand your presence in the marketplace as a whole.
Segmentation identifies loyal customers. Attracting new customers is significantly more expensive than retaining current ones so it is always important to do everything you can to maintain your current customer base. Knowing the demographics of that customer base gives you more insight into their wants and needs and how you can better align yourself with both.
Once you have identified key demographics of your top customers, you can use this information to create a persona. Be careful not to confuse segmentation with persona building. Segmentation is demographics-based while personas incorporate other attributes such as needs, desires, emotions and goals. A well-crafted persona can effectively help your marketing and sales teams better understand their different targets. It can also help drive customers to you.
Successful content marketing creates pieces that your prospects want to read and find organically. Using segmentation of your current customer base to create personas that drive your content will eventually feed itself and draw your customers to you!
Segmentation is an important part of analyzing your customer experience data. Without breaking down your data you could be missing important insights into problem areas, your most valuable customers, and ways to continue to improve your marketing. Slicing and dicing your data is crucial to see and understand the big picture.
To learn more about using customer experience to build your brand, check out this Forrester report.
Kate Zimmerman is a Product Marketing Associate at Clarabridge. Kate focuses on building content that supports CX efforts, product marketing, analyst relations, and has become an industry expert in Customer Experience Management. Kate holds a B.A in Politics from the University of Virginia and can be found on Twitter at @kmzimm.