What is Data Segmentation?

Data Segmentation is the process of taking the data you hold and dividing it up and grouping similar data together based on the chosen parameters so that you can use it more efficiently within marketing and operations. Examples of Data Segmentation could be:

• Gender
• Customers vs. Prospects
• Industry

Why is Data Segmentation important?

The key benefits of Data Segmentation are:

1. Through customer segmentation you will be able create messaging that is tailored and sophisticated to suit your target market – appealing to their needs better.
2. It allows you to easier conduct an analysis of your data stored in your database, helping to identify potential opportunities and challenges based within it.
3. Enables you to mass-personalise your marketing communications, reducing costs.

How can you apply segmentation to your data?

To implement the right kind of Data Segmentation and to communicate more effectively with your target group requires a blend between having the right processes and technology in place (such as data quality tools and customer data validation). This allows you to analyse and profile your current database, whilst ensuring any incoming data is also segmented accordingly. A key requirement of Data Segmentation is high-quality data, in terms of it being both accurate and does not lack basic information such as “name” or “address”.