Here’s an important question not enough marketers ask themselves. How many unopened promotional emails are currently sitting in your personal inbox, and more importantly, why haven’t you opened them?
The answer in almost every instance is the same. Those emails are irrelevant to you. They are targeting you with one-size-fits-all blanket promos and making you feel like a name in a database. If you’re guilty of sending emails like that, it’s time to consider adopting an AI-driven marketing segmentation strategy.
By adding Artificial Intelligence (AI) into the mix, you can uncover even deeper insights at scale, refine your segments, and deliver more meaningful connections.
In this guide, we’ll explore segmentation—best practices, examples, pitfalls, AI-powered strategies, and more. Let’s dive in!
Marketing segmentation involves sorting a market into smaller consumer groups with similar traits, behaviors, or needs.
The goal is to personalize experiences by identifying each group’s unique preferences and behaviors and tailor messaging and offers accordingly. This customer-centric approach leads to more effective campaigns, better resource allocation, and greater return on investment (ROI).
Studies regarding these results speak for themselves but also show further need for innovation:
According to the Harvard Business Review, personalization will emerge as the most thrilling and lucrative benefit of the upcoming AI boom—but only for those companies that prioritize it strategically.
Complex segmentation allows businesses to identify and target specific customer groups with highly relevant and personalized marketing messages.
AI segmentation in SAP Emarsys is a game-changer for delivering precise, relevant messages at scale. The platform’s continuously learning algorithms spot trends in customer data and create segments that adapt in real-time.
Below are five of the most commonly used AI segment types, along with brief descriptions and potential use cases.
These AI-powered segments are dynamic: as new data flows in, each segment updates automatically, reflecting changing behaviors and preferences.
By focusing on the most relevant segment types, you’ll spend less time tinkering with manual lists and more time creating meaningful experiences that drive conversions and loyalty.
Below, we’ll examine real-world examples of successful segmentation strategies that boost engagement, retention, and overall revenue.
“The ability to deliver those personalized communications on this scale, I believe, is what sets us apart from other entertainment people within that industry.”
Village Roadshow achieves this level of personalization by collecting data from various touchpoints, including ticket sales, app usage, and social media engagement. SAP Emarsys enables their team to make data-driven decisions around segmentation.
“SAP Emarsys’ relational data segmentation allowed us to utilize that and empowers the team to make decisions based on that segmentation.”
The theme parks segment their audience based on key factors such as demographics, family size, visit frequency, and past purchase behavior.
“We mostly segment based on demographic data because that influences what ticket type they normally like to purchase.”
Beyond this, Village Roadshow uses SAP Emarsys’ relational data to enhance the entire guest journey, from initial interaction to building long-term customer loyalty.
Tips for replicating Village Roadshow’s success:
Wella Company, a global leader in the beauty industry, effectively uses data-driven marketing through sophisticated segmentation strategies. Leveraging the SAP Emarsys suite of tools, Wella Company creates highly targeted and personalized campaigns that engage different customer segments.
One example of Wella Company’s data-driven approach is its personalized email campaigns. Analyzing customer data and behavior allows Wella Company to provide relevant product recommendations that drive conversions.
Tips for replicating Wella Company’s data-driven success:
In addition to personalized campaigns, Wella Company also uses integrated loyalty programs to build and maintain customer loyalty across different segments. Rewarding customers for engagement and purchases helps Wella Company foster long-term relationships and increase customer lifetime value.
As we have learned, effective marketing segmentation strategies are essential for driving engagement and conversions. Leveraging personalization, data-driven insights, and AI technologies enhance your marketing efforts.
Prioritizing the most valuable segments ensures your resources go where they make the most significant difference, which aligns with the Pareto principle.
To begin, remember to start with these steps:
Embracing these best practices allows for a more targeted, effective marketing strategy that resonates with your audience and drives business growth.
Ready to optimize your marketing segmentation? Contact SAP Emarsys today to learn how our AI-powered personalized omnichannel platform can support your goals and deliver better business outcomes.
Kirk Donlan is a content marketing manager at SAP Emarsys where he uses his marketing, customer success, and copywriting experience to develop engaging, industry-specific content for marketers and marketing leadership.
Connect with Kirk: LinkedIn
Kirk Donlan
Product Marketing Manager
