Examples of customer segmentation in retail
Posted: Tue Feb 11, 2025 8:27 am
But if done accurately, this one-time marketing investment can pay back tenfold in the revenue generated by meaningful segments that work for your business. Let's see how the field leaders do it!
Even though large retailers can capture anyone, they belgium phone number data use customer segmentation models to reduce marketing investment and acquisition and retention costs. Here are some key examples from industry leaders:
A. Amazon
Amazon has millions of customers and operates in over a hundred countries. It relies on complex and deep audience segmentation to reach the desired customer with the right offer. The company processes a massive amount of data points on all its customers to make a single recommendation.
That large amount of data allows them to make these recommendations as relevant as possible. It also shows how significant segmentation is for knowing their customers and making data-driven offers.
Here are some examples of how Amazon relies on the four basic segmentation models, according to available Amazon Segmentation Data:
Demographic segmentation – their largest segment is customers in the 35-49 age group, with over 76 million US households using an Amazon Prime subscription.
Geographic segmentation – the leading geographic segment for Amazon is the US, with 60% of website traffic and 38% of sales originating in the States.
Behavioral targeting – data shows that non-Prime customers make more purchases, but 48% of those with a Prime membership shop at least once a week. Free shipping for Prime members, product variety, and highly accurate recommendations and personalization efforts proved key for customers.
Even though large retailers can capture anyone, they belgium phone number data use customer segmentation models to reduce marketing investment and acquisition and retention costs. Here are some key examples from industry leaders:
A. Amazon
Amazon has millions of customers and operates in over a hundred countries. It relies on complex and deep audience segmentation to reach the desired customer with the right offer. The company processes a massive amount of data points on all its customers to make a single recommendation.
That large amount of data allows them to make these recommendations as relevant as possible. It also shows how significant segmentation is for knowing their customers and making data-driven offers.
Here are some examples of how Amazon relies on the four basic segmentation models, according to available Amazon Segmentation Data:
Demographic segmentation – their largest segment is customers in the 35-49 age group, with over 76 million US households using an Amazon Prime subscription.
Geographic segmentation – the leading geographic segment for Amazon is the US, with 60% of website traffic and 38% of sales originating in the States.
Behavioral targeting – data shows that non-Prime customers make more purchases, but 48% of those with a Prime membership shop at least once a week. Free shipping for Prime members, product variety, and highly accurate recommendations and personalization efforts proved key for customers.