How can Customer Segmentation help in boosting your ROI?

How can Customer Segmentation help in boosting your ROI?

Customer segmentation is the approach of grouping similar consumers together to examine their behavior in depth. By this way, customers can be classified by industry, product tier, usage level, revenue, acquisition date, geographic location, contact channel, buyer persona, current plan, and ideal customer profile. By grouping various data sets, firms in the telecommunications industry can obtain numerous segmentation benefits. The benefits includes creating ideal client profiles and predicting which sorts of clients will detest particular services and goods. The purpose of segmentation is to establish separate categories within an organization’s target audience so that marketers may deliver more valuable and targeted messaging.

Customer Segmentation trends division

Current segmentation trends in the telecommunications business can be divided into three groups.

1.     Customer Value Segmentation

It has been assumed that customer retention is the most essential aspect of marketing. The key reason is the 80/20 marketing expenditure rule, which claims that “the top 20% of profitable customers generate 80% of a company’s earnings, while the upper most 20% of unprofitable consumers pay 80% of the company’s expenses.” Therefore, organizations invest significant time and effort in customer retention. Typically, telecom companies separate profitable customers based on their value.

The essential steps in segmenting customer value are as follows:

  • Calculate each user’s value (this is the summary of predicted future and past value of users),
  • Use decile analysis to divide your customer base into ten groups of equal size, sometimes known as deciles.
  • Develop in-depth consumer profiles to closely track their desires and devise a marketing strategy to meet them.

2.     Behavior Segmentation of Customers

In recent years, the number of persons utilizing telecom services has increased substantially. Certainly, by 2022, it is expected that global IP traffic will increase to 400 exabytes (month). Telecom companies record every action their customers do. Ultimately, these activities store behavioral data to manage such a large number of customers and better comprehend their demands. Because people rely extensively on telecom services in their everyday lives, telecom companies benefit from detecting consumer expectations and developing suitable strategies based on gathered customer behavioral data. Customer behavior segmentation is the technique of dividing markets according to consumer behavior.

3.     Lifecycle Customer Segmentation

To remain competitive in the current market, telecom companies must continue to utilize customer-centric market segmentation strategies. Understanding customer behavior and boosting client loyalty are essential to the success of the chosen market segmentation strategy. Using a picture of a customer’s current life stage, customer lifecycle segmentation classifies the market depending on their needs and interests.

Challenges of the Telecom Industry

– Importance of Individualized Customer Service

The majority of telecom service providers receive numerous customer requests every day. An ever-increasing number of requests and the difficulty of physically visiting businesses that provide fast service pose a hurdle. Immediacy, customization, and multichannel communication are now more crucial, and ignoring these requirements may lead to lengthy wait times and unsatisfactory responses.

The reasons above can negatively impact a user’s relationship with your company. A dissatisfied customer is undoubtedly the antithesis of what you desire. Important components of establishing a lasting relationship with your clients are personalized notifications and frequent interaction.

How does it benefit the organization?

Sending targeted offers to users

With millions of users and a wide variety of products and personalized services, operational tasks have grown more complicated as face-to-face assistance has become unavailable. Even ostensibly simple processes such as service configuration, billing, order fulfillment, and payment have evolved complicated. Complex operations necessitate additional resources and equipment, which increases the financial overhead of telecom businesses.

Moreover, consumers anticipate everything to be super fast. During the global pandemic phase, they are reluctant to tolerate delays in operating processes. It is time to be more committed than ever before.

Learn how appICE can help in sending targeted offers

Successful marketing

This is the primary advantage of a well-executed strategy for consumer segmentation. By acquiring a greater understanding of their customers’ needs, marketers may create more effective tactics to address those needs. As a result of stronger customer connections and interactions with the brand, marketing initiatives become even more effective. In deed, targeted marketing generates more significant returns on investment and reduces the amount of money wasted on marketing that does not reach the target demographic.

Effective client interaction

In addition to boosting conversion rates, marketing automation technologies can improve the team’s efficiency. The tool assists you in enhancing client engagement and managing customers effectively. Your marketing automation software will monitor your clients’ purchase history and data limit and may even be used to provide reminders to recharge and promotional emails, thereby increasing your conversion rate. Marketing automation frees up time for your team to evaluate your marketing strategy and identify how to convert website visitors.

Push Notifications based on customer segmentation

A large number of companies initiate push notification campaigns. These are useful for updating Android and iOS app users about new offers. The event-based triggers are particularly successful at reactivating inactive users and closing transactions within the app. In addition, push notifications can be used to send timely reminders to customers during low balance, data recharge, and bill due dates.

Additionally, you may convey a sense of urgency to the goods by mentioning that the deal will expire. You can evaluate whether a visitor is interested in additional products by assessing their behavioral features.

Also Read – How Telecom service providers can increase customer retention rate with marketing automation tools?

Accurate Reporting

Reporting your statistics can be challenging, but marketing automation technologies make this unnecessary. Therefore, your program should allow you to generate automated reports, making the tasks easier to handle. In addition, marketing automation technologies can provide a comprehensive overview of the complete process. This will help you identify issues and places of contention. With reliable and efficient reporting, you can determine where the problems are. Are fewer leads resulting from your attempts to nurture leads via email? Or does it occur within your sales process? In either scenario, trustworthy analytics will aid you in detecting and fixing these issues promptly.

Scalable Method

It is essential to consider the size while creating marketing systems and procedures. Can this process grow with your company? If it is not scalable, expanding your firm will be challenging. Marketing automation permits the establishment of scalable processes. The more tedious and dependent on a single individual a process is, the more difficult it will be to expand as the team grows.


To ensure that your marketing efforts are not in vain, companies must adopt numerous techniques in today’s competitive market. However, these marketing activities are all dependent on client information, and this data permits evaluation of marketing’s successes and failures and strategic planning through its comprehension, management, and application. With the right knowledge of consumer segmentation models, telecom companies may develop the most effective plan imaginable.


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