Stop Wasting Marketing Dollars: Real-world Customer Segments Examples That Drive Real Results
Customer segmentation is a practical approach to reaching different audiences grouped by similar characteristics.
It helps you identify ideal customers and send the right messages without wasting your marketing budget.
So, why do brands pay so much attention to it?
Because billions of digital marketing dollars are lost and sent to the wrong target segments. Even email marketing, which boasts a conversion rate of 6.05%, is not immune to this issue.
This guide exhibits customer segment examples that will help you ditch generic marketing messages and unlock marketing success.
What is a Customer Segment?
Customer segmentation is the process of dividing audiences into distinct groups based on shared characteristics such as age, gender, geographic location, purchasing habits, engagement, etc.
A customer segment is a group of individuals within your overall audience who share similar attributes. The goal of segmentation is to break your audiences into smaller and more targeted groups, helping you send specific email campaigns that deeply resonate with each recipient.
Customer segmentation allows you to:
- Understand customers’ needs better: By focusing on a particular segment, you can gain a deeper understanding of their unique problems and motivations.
- Tailor your marketing messages: You can craft messages that directly solve their pain points or speak to their interests and hobbies.
- Optimize your marketing channels: Segmentation helps you to choose the channels on which your audiences are the most active (social media vs. email marketing, etc.).
- Increase ROI: Targeted campaigns help you reap increased return on investment because the messages resonate with individuals, encouraging them to convert.
In essence, customer segmentation helps you move away from a one-size-fits-all approach and create personalized client experiences.
Let’s learn the various segmentation methods to help you construct targeted email campaigns.
Customer Segmentation Models to Know
Each of your audiences is unique — what appeals to homemakers might not achieve similar results with office-goers. That’s why it’s critical to divide audiences based on the following factors.
The table with examples of customer segments models will help you get a better picture:
| Segmentation Model | How to Do It | Data Points Used | Segment Examples |
|---|---|---|---|
| Demographic | Group customers based on fundamental characteristics | Age, gender, location, education, family size, etc | Young professionals (25-30 years with high income) |
| Behavioral | Segment based on customer interaction with your brand | Purchase history, product usage, website visits, engagement on social media, etc | New subscribers, 30-day openers, high-value customers (frequent purchasers, people who spend high amounts on products) |
| Psychographic | Group customers based on personality, values, and lifestyle | Interests from website browsing, social media activity, data from surveys, etc | Eco-conscious customers (prefer sustainable products and are passionate about environmental health) |
| Geographic | Segment based on customer location | Country, region, city, zip code, etc | Customers in specific regions targeted for local events |
| Technographic | Group customers based on the technology they use | Device type (mobile, tablets, desktop), operating system and browser, etc | Mobile app users who access from IOS |
| Needs-based | Segment customers based on specific problems they’re trying to solve | Customer surveys, support tickets, product reviews, etc | Customers looking for weight loss solutions (diet plans or fitness routines) |
| Value-based | Group customers based on the value they place on your products | Willingness to pay a premium price, customer lifetime value, spending habits, etc | Loyal brand advocates (positive brand sentiments, willing to refer your products or services to others) |
For a more targeted approach, you can create customer personas (fictitious characters that describe the interests of a particular audience segment). This will help you know who you are talking to and how to tailor the messages for better engagement.
The variables below are the most relevant and common examples, which will help you understand the nuances of segmentation models.
Demographic Segmentation
1. Gender
Men and women have varied interests, motivations for purchase, and shopping behavior. For example, consider an athletic apparel brand. Men might be more interested in performance and function, while women might focus on style and fit.
This diversification could demand a different approach to the same email marketing campaign. For men, you will have to focus on the technical aspects of clothing, such as breathability, and showcase athletes using the product. Whereas, women might want to see flattering designs, comfort features, and images of other women using the product.
Gender segmentation can tell a lot about a person’s buying habits and preferences.
2. Age
Age segmentation is a vital tool to understand an individual’s interests and preferences. Young adults (20-34 years) will not need the same products as teenagers or adults (35-54 years).
Imagine you run a travel and tourism company. Your customers can be diverse, such as families, couples, kids, etc. Families will preferably want family-friendly destinations, safe locations, and activities for all ages. Young adults will look for adventure-packed and budget-friendly options.
3. Occupation
Occupation is a vital segmentation variable that showcases the customer’s spending habits and shopping preferences. Depending on your product’s nature and pricing, you can target different audience segments, such as premium and high-value customers.
Gathering professional data can help you tailor marketing messages and reach the right people who will support your brand. For example, busy professionals such as doctors and teachers will take a different approach to fitness apps than homemakers.
Behavioral Customer Segmentation
1. Cart Abandonment
Cart abandonment is a behavioral segmentation variable that will help you separate and incentivize cart abandoners without wasting time and resources in between. Further, you can segment by abandonment stage, such as early abandoners, mid-checkout abandoners, and late abandoners.
Or you could go a step further and segment by abandonment frequency: one-time or frequent abandoners.
Additionally, combining these segments with other data, such as demographics and browsing behavior, will help you send highly targeted campaigns.
2. New Customers
New customers fall into the behavioral segmentation variable. Creating this target group will guide you through the early stages of buyer behavior. You can highlight introductory offers, explain product basics, or share relevant offers to encourage them to stay with your brand.
Since new customers require more handholding than others, you can send them onboarding sequences that guide them through the initial steps and increase their chances of success.
3. Last Customer Engagement
This variable shows the customers’ level of readiness to engage with your product again. If their recent interaction has been pleasant, they will be more willing to accept promotions, deals, or consider complementary products. For example, you can send complementary products to people who last clicked on your CTAs. Or incentivize subscribers who opened your emails in the last 30 days to increase engagement.
4. Website Activity
Website activity tracks customers’ actions on your website, including the pages they visit and the time spent on each page. You can segment customers based on how many times they clicked on an element or visited your homepage, the number of visitors who bounced, or the number of unique visitors to your site.
Psychographic Customer Segmentation
1. Lifestyle
Lifestyle is a combination of demographic, behavioral, and psychographic data. This variable lets you understand the customers’ level of interest in your products or services.
Let’s take an example of the fitness app — busy professionals are usually time-crunched and looking for healthy diet and workout plans. You can target them with quick and efficient workout regimens and healthy recipes.
Another target segment could be active families looking for fun and engaging workouts for all ages.
Segmenting by lifestyle can speak directly to your customers’ aspirations and desires, leading to stronger engagement and brand loyalty.
2. Birthdays
Knowing customer birthdays gives you an opportunity to send them wishes and add special offers as part of rewarding their loyalty.
You can also segment audiences by their birthday month or season and tailor messages based on potential seasonal needs. For example, summer birthday groups will receive promotions for outdoor gear, and winter birthdays will receive offers for cozy apparel.
While birthdays are great data points, they are not the strongest segmentation variable on their own. It’s best to combine them with demographic and behavioral variables to understand your audiences on a personal level.
3. Values
Most customers are conscious of their shopping habits, especially when it comes to sustainability. By segmenting people based on this variable, you can send them relevant sustainable and organic products, invite them to support environmental-heavy events, and create an overall positive impact.
4. Personality
Segmenting customers by personality can be challenging, but you can get close to it by observing their demographics and behavioral aspects.
You can divide customers into introverts, comical, outgoing, etc, to send them hyper-relevant email content.
Technographic Customer Segmentation
1. Device Type
Tracking the device type lets you know where customers mainly open your emails. Is it a mobile device, tablet, or desktop? Apple or Android?
Analyzing this variable will show user behavior and help you manage customer expectations. If the majority of your audiences use mobile phones to access your emails, opt for mobile email marketing campaigns.
2. Browser Type
This is similar to segmenting by device type but shows which internet browser a customer is using – Google Chrome, Safari, or Mozilla FireFox?
Since different browsers can display information differently, it’s essential to test this variable to create adaptable email marketing templates.
Value-based Customer Segmentation
1. Lifetime Value
The lifetime value groups customers based on the total revenue a customer generates over their relationship with your company, also known as the customer journey in a few cases.
Understand the total amount spent, frequency of purchases, and average order value. This will help you sort the segment into smaller groups such as high-value (customers who spend the most), medium-value (profitable customers but not very engaged), and low-value customers (new or not very engaged customers).
2. Purchase History
The number of purchases a customer makes is a prime factor in determining their value. You can use the ‘customer pyramid’ and visualize customers based on their spending tiers. The pyramid’s base represents low-spending customers, while the top represents high-value customers.
Needs-based Customer Segmentation
1. Service Needs
New customers will require more assistance than existing customers. Segmenting audiences based on their level of needs will make it simpler for you to solve their needs and pain points.
You can send them surveys, polls, or directly ask customers about their challenges, goals, and what motivates their purchase decisions.
2. Personalized Experiences
Some customers may need extra assistance with accessing your products or require personalized experiences tailored to their specific needs.
For example, you can optimize your website content to reflect each segment’s interests and motivations. Or enhance your customer support to provide additional value.
You can experiment with the variables depending on your business type and needs. Below, we’ll review common businesses and their typical customer segments.
Common Businesses and Their Customer Segments Examples
80% of the customers are more willing to do business with companies that offer personalized experiences. Whether you’re a retail brand or a tech giant, personalization helps your customers save money and makes purchases convenient, increasing your brand value. But to personalize offers, you need to segment your audiences first.
The table below contains typical businesses and customer segment examples to give you a fair idea.
| Business Type | Customer Segments Examples |
|---|---|
| Retail stores (Clothing) | ‣ Budget-conscious shoppers looking for deals ‣ Fashion enthusiasts interested in trends ‣ Professionals seeking work attire |
| Grocery stores | ‣ Professionals needing quick meals ‣ Health-conscious individuals looking of organic produce ‣ Budget shoppers looking for value |
| Restaurants | ‣ Families with young children ‣ Casual diners ‣ Fine-dining patrons looking to celebrate special occasions |
| Streaming Services | ‣ Movie buffs wanting a vast library of films ‣ Binge-watchers looking for original TV shows ‣ Families looking for kid-friendly content |
| Fitness Apps | ‣ Beginners seeking introductory workout routines ‣ Athletes wanting advanced training plans ‣ Busy professionals needing quick and efficient workout plans |
| Travel Agencies | ‣ Luxury travelers seeking high-end experiences ‣ Budget backpackersAdventure seekers ‣ Families with children |
| Banks | ‣ Young adults starting their career ‣ Families managing a household budget ‣ High-net-worth individuals needing wealth management services |
| Tech Companies (Phones) | ‣ Tech-savvy early adopters wanting the latest features ‣ Budget-conscious consumers seeking value for money ‣ Business professionals needing secure and reliable devices |
Using customer segmentation, you can gain actionable insights into customers’ buying habits and, in turn, tailor marketing messages accordingly.
Marketers generally use various segmentation models to create target groups. To familiarize ourselves with this phenomenon, let’s examine real-world segmentation examples.
1. Dutch Bros’s Example of Customer Segments: Targeting the Right Coffee Lover
Dutch Bros, known for their unique coffee drinks, Rebel Energy Drink, and Chai caters to a broad customer base. Even so, the brand knows how to segment their audiences for a targeted marketing messages and offers.
Below are Dutch Bros’ potential customer segments:
- On-the-go professional: Busy professionals with limited time looking for convenience and a quick energy boost. Dutch Bros can highlight their drive-through and mobile marketing app and sugar-free/low-calorie options in marketing to this segment.
- The social butterfly: This segment enjoys the Dutch Bro experience more than the coffee itself. They choose Dutch Bro for the friendly atmosphere and customization options (each cup is printed with the buyer’s name).
- The value-seeker: At Dutch Bro, customers can purchase a high-quality item for a significantly reduced price, where the staff allows them to customize their orders.
- The health-conscious consumer: Dutch Bro provides blended or skinny drinks with non-fat instead of full milk, catering to health-conscious beverage lovers.
Customer Segmentation Example: Demographic (Date of birth)
Sending a birthday wish along with an email coupon is the easiest way to encourage engagement. Personalize these emails by adding their names to make your marketing sound friendlier.
Dutch Bros sends a warm birthday wish with a free drink to celebrate the customer. They also mention the validity of the reward, keeping their terms and conditions transparent.
2. Cole Haan Customer Segments: The Young Professional Climbers
Cole Haan is an American brand that designs and sells footwear and apparel. Its core audience falls under the ages 24-44 years, including men and women. Their products are often viewed as stylish and versatile, which resonates with young professionals, entrepreneurs, and those in the creative fields.
These are the potential characteristics of Cole Haan customers:
- Juggles work, social life, and personal commitments.
- Appreciates high-quality footwear that transitions seamlessly from work to weekend.
- Seeks balance between work and fashion and practicality.
- Tech-savvy and active on social media.
Customer Segmentation Example: Behavioral (Website Browsing or Past Purchases)
Using customer behavioral data, Cole Haan curates relevant products that inspire audiences. This is a great tactic to show customers you understand them and encourage purchases.
3. Loisa Customer Segments: The Latin Spice Lovers
Loisa started as a passion project from a kitchen in New York and soon grew to be a haven for Latin pantry staples.
It’s ideal target audiences are:
- Latin women aged 25-45 years interested in traditional recipes and flavors.
- People looking for easy-to-prepare meals on busy days.
- Individuals trying to connect with their heritage food.
Customer Segmentation Example: Geographical
Another approach to customer segmentation is splitting customers based on their location. Loisa’s focus is bringing Latin America’s rich heritage through its diverse sauces.
Although the brand sells throughout the USA, the email is targeted toward the locals of California (Bristol Farms). This segmentation makes it easier to reach more people and offer products according to local tastes.
4. Nokia Customer Segments: Appeals to the Urban Professionals
Nokia is one of the largest telecommunications manufacturers, targeting high, middle, and low-income groups with varied lifestyle choices.
Nokia’s (Watches) primary customers fall under these categories:
- Health-conscious professionals: This segment consists of health-conscious professionals who also value classic design and functionality. They juggle work, family, and personal commitments, making time management critical.
- Young professionals: This segment contains young professionals who prioritize versatility over comfort. Nokia ensures to provide discounts and special offers on top of its affordable prices to cater to this customer segment.
- Tech-savvy early adopters: These people crave to be on the frontline of technology and constantly seek innovative products.
Customer Segmentation Example: Psychographic
Nokia encourages its medium-end customers to consider its HR hybrid steel watches as a way of being modern and timeless simultaneously. Plus, they offer an extra premium leather wristband with the purchase of the hybrid watch.
5. Beekeeper’s Natural’s Customer Segment: Organic Product Consumers
Beekeeper’s Natural, a company offering honey-based products for cold and flu symptoms, benefits from segmenting its customers based on needs and interests, such as organic medicines, natural ingredients, and the health benefits of honey.
Their core marketing message focuses on the natural goodness of their products and their contribution to a healthy lifestyle. They also attract eco-conscious consumers, people concerned about sustainability and ethical sourcing.
The brand caters to this audience type by highlighting environmentally friendly practices, locally sourced ingredients, and organic beekeeping methods.
Customer Segmentation Example: Behavioral
BeeKeeper targets customers with flu and sinus problems to support seasonal symptoms. They clearly explain the product ingredients and its benefits to showcase the value.
6. Coca-Cola: Modern and Health-Conscious Consumers
Coca-Cola (Diet) appeals to those who enjoy a classic taste yet are mindful of their calorie intake and health. Although they target a broad audience, their Diet Coke category specifically targets youngsters. These people are frequent soda drinkers, consumers looking for unique drinks at social gatherings, and on-the-go soda consumers.
Coke employs a fun and energetic image, showcasing happiness in all their email campaigns. They also emphasize the sugar-free benefits and health consciousness.
Customer Segmentation: Psychographic
Coca-Cola advertises itself as ‘the World’s No.1 selling zero-calorie drink,’ appealing to health-conscious audiences. Its images are fresh and bold, highlighting the packaging makeover.
Overall, segmentation leads to laser-targeted marketing, enhanced customer experience, and increased conversions.
But what if you want to target more customer segments simultaneously without having to send emails separately?
Campaign Refinery brings a new level of segmentation and we tell you all about it below!
Campaign Refinery’s New Segmentation Feature Release: Enjoy Better Open Rates and Higher Engagement
“Audience Groups” is Campaign Refinery’s new feature that lets users choose different customer segments and group them for a specific campaign. You can easily send broadcasts or nurture campaigns to different audience groups, increasing efficiency.
Checkout our detailed guide on Audience Groups and how it helps increase your open rates.
This feature is unique because it lets you combine recently engaged and recently added subscribers, allowing you to send hyper-personalized messages and offers.
Over the top, you can use our advanced tag system to target audiences based on different criteria such as demographics, engagement, among others.
As we’ve seen in the examples above, there are plenty of criteria you can use to strengthen your relationship with customers. However, you also need a reliable segmentation tool to help you do that.
Campaign Refinery’s segmentation tool empowers you to create and manage audiences and enhance customer experience along the way.
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