How To Rethink Your Customer Segmentation Efforts To Be More Profitable

Italian economist Vilfredo Pareto once observed that 20% of the population owned 80% of Italy’s land. This seemingly simple observation led to the “Pareto Principle” or “80/20 rule.”

Translate that to customer segmentation: 20% of your customers could generate 80% of your profits. Or, as Drew Sanocki, Founder of Nerd Marketing, terms them, these are your “whales”—the crème de la crème of your customer base.

Your move? Identify and nurture that 20% of highly profitable customers with customer segmentation tactics.

Why Segment Customers?

Every customer has a pattern that reflects their purchase behavior. When you segment customers, you effectively decode these patterns to transform data points into actionable insights.

“If you’re not segmenting and targeting your customers, you waste time, energy, and unnecessary work. You’re really leaving money on the table.” — Drew Sanocki

Segmenting customers enables you to tailor your offerings, communication strategies, and services to meet individual needs, creating a more meaningful connection between your brand and customers. Customer segmentation isn’t just about selling more efficiently; it’s about serving more effectively.

“Customer segmentation analysis helped me understand our business better, improve all our KPIs and communicate better with our customers.” — ECF Member

Why Customer Segmentation Matters

  • Personalization: Tailor your messaging to fit individual needs and preferences.

  • Optimized Marketing Spend & ROI: Direct…

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