Customer segmentation can be a simple or a complex process. It may be undertaken manually or using predictive algorithms, and can come in many shapes and forms. The assumption underlying all segmentation modeling, however, is that within your customer database you will have groups of customers that share similar attributes, behaviors and buying habits. If you can understand how individuals within a particular segment are interacting with your products and services, then you can start to fine-tune your marketing to ensure that you can deliver what they’re looking for, and therefore achieve better engagement.

Nobody buys a new car in a hurry. After all, a car is the second most expensive purchase that people routinely make (after a home), and those purely interested in utility or seeking an emergency replacement tend to shop second hand. A new car is a status symbol. It represents who you are, how you live, and what you like to do in your spare time – and that’s without thinking about keeping your family safe, the likely weather and road conditions, and your mileage and environmental preferences. Automotive clients know what they’re looking for and are willing to hold off until they find it. So, the buying journey can take years and approaching the right customer in the right way is absolutely critical.

The explosion in do-it-yourself online bookings and the trend for bundled holiday products over the last decade has made knowing and defining the target market more important than ever within the travel & leisure industry. It used to be enough to segment customers by core demographics – their age, residential location and life stage, for example – but reaching the right customer with the right message in a competitive digital arena has become much trickier.