How can you segment customers on a budget?

1 Use existing data

One of the easiest ways to segment customers on a budget is to use the data you already have. You can collect data from your website, social media, email campaigns, CRM system, customer feedback, or sales records. You can analyze this data to identify patterns, trends, or correlations among your customers. For example, you can segment customers by their location, purchase history, engagement level, preferences, or satisfaction. Using existing data can help you save money and time, as well as gain insights into your customer base.

2 Apply simple criteria

Another way to segment customers on a budget is to apply simple criteria that are relevant to your business goals and customer needs. You can use criteria such as demographics, psychographics, behavior, or benefits. Demographics are basic attributes such as age, gender, income, or education. Psychographics are psychological factors such as personality, values, or lifestyle. Behavior is how customers interact with your product or service, such as frequency, usage, or loyalty. Benefits are what customers expect or want from your product or service, such as quality, convenience, or price. Applying simple criteria can help you create segments that are easy to understand and target.

3 Test and refine

A third way to segment customers on a budget is to test and refine your segments over time. You can use experiments, surveys, or feedback to validate your segments and measure their performance. You can also monitor changes in customer behavior, preferences, or needs and adjust your segments accordingly. Testing and refining can help you improve your segmentation accuracy and effectiveness, as well as identify new opportunities or challenges.

4 Use free or low-cost tools

A fourth way to segment customers on a budget is to use free or low-cost tools that can help you collect, analyze, and visualize data. There are many online tools that offer features such as web analytics, email marketing, customer surveys, data visualization, or segmentation models. Some examples are Google Analytics, Mailchimp, SurveyMonkey, Tableau, or RFM (recency, frequency, monetary value) analysis. Using free or low-cost tools can help you automate or simplify your segmentation process and enhance your results.

5 Learn from others

A fifth way to segment customers on a budget is to learn from others who have done it successfully. You can look for examples, best practices, or case studies from your industry, competitors, or similar businesses. You can also seek advice, feedback, or collaboration from your peers, mentors, or experts. Learning from others can help you avoid common mistakes, discover new ideas, or benchmark your performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?