Customer segmentation modelling: smart, data-driven segmentation


No one can predict the future. But diving into historical data today, reveals trends that can help you tomorrow. With customer segmentation modelling, for example, you can find the right customer segments in your data smarter, faster, and cheaper. We'll tell you all about it.

  • Discover historical trends 

  • Use models to dig into your data 

  • Save time, money, and energy 

  • iO as a tactical and strategic partner 

  • Make the data work for you 

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What is customer segmentation modelling and how can iO help?

Segmentation is nothing new. Organisations have been sending different messages to different target groups for decades. But segmentation is often done on gut feeling. Customer segmentation modelling replaces that manual process — and makes segmentation smarter, more efficient, and cheaper. This is how our experts help you with customer segmentation modelling. 

How does customer segmentation modelling help your organisation?

Like other data modelling approaches, customer segmentation modelling uses historical data to make a reasoned prediction about the future. 

Here’s an example: 

Company ABC sells product XYZ. Over the years, ABC has collected a lot of data on customer behaviour — giving them a good idea of what precedes the purchase of XYZ. ABC notices that those customers often hit the same landing page, click on the same buttons, and so on. In addition, ABC collects explicit data about visitors (e.g., location, age, time of visit). 

To drive XYZ sales in the future, ABC uses customer segmentation modelling to segment a part of its customer base that exhibits the same behaviour — the same landing page, the same buttons. 

Until now, this process has been carried out manually at many organisations in a range of sectors. Now customer segmentation modelling is here to help. There are a lot of factors that can contribute to a segment, and the way we humans always look at those factors is biased. 

Data modelling can dig deeper, faster, and better into customer data than a human ever could. The result: huge efficiency gains, less time wasted on everyday tasks for your employees, and more objective segmentation.  

Who benefits from customer segmentation modelling?

Like other forms of data modelling, customer segmentation modelling is not just for multinationals with multimillion-dollar budgets. Smaller and medium-sized organisations can also benefit. 

All you need is a reasonable amount of ordered, historical data — and the willingness to get started. And don't panic: if your data isn’t organised, iO can help you with that. 

Customer segmentation modelling is relevant for organisations that sell products and services, but also for, non-profits and organisations in the public sector. In short: every organisation that uses target groups benefits from customer segmentation modelling. 

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