Starting a new business is challenging. As you begin your entrepreneurship journey, crucial questions like the below emerge:
- Who are our customers?
- What are their specific needs and preferences?
- How do they interact with our products/services?
- What channels do they prefer for communication?
- What motivates their purchasing decisions?
By answering the above questions, organizations unlock critical insight to tailor their marketing strategies.
Market segmentation allows companies to customize their marketing efforts to specific groups based on demographics, behaviors, or preferences.
This article lists the top customer segmentation tools to connect with customers personally for improved conversions and retention.
What Are Market Segmentation Tools?
Market segmentation tools simplify the process of understanding and connecting with customers personally.
These tools help organize customers into distinct groups, providing valuable clues about who they are, how they behave, and what motivates their choices.
Some of the top features offered by customer segmentation software are:
- Demographic Sorting
- Behavioral Insights
- Communication Preferences
- Purchase Motivations
- Lifecycle Stages
You can create targeted advertising approaches for each group by dividing the customer base into segments.
Also See: Best UX Survey Tools: 2024 Comparison
What Are the Advantages of Using Market Segmentation Tools?
Here are the biggest advantages of using market segmentation tools:
- Focus on the Buyers that Matter Most: Market segmentation allows organizations to target specific buyers, focusing efforts where they matter most.
- Power New Product or Service Development: By breaking the market into smaller segments based on customer needs, businesses can uncover opportunities for innovation and design products that meet customer requirements.
- Insightful Consumer Profiling: Segmentation helps unveil consumer demographics, locations, and preferences.
- Strategic Mass Customization: Mass customization helps businesses create tailor-made products and services that align with the diverse needs of specific customer segments.
- Niche Market Discovery: You can discover insights into niche markets that position your business for rapid growth. Applying segmentation systematically allows for discovering potential markets where a business can maintain dominance.
- Data-driven Market Exploration: Businesses can use data visualization and cluster analysis to refine customer segmentation and improve service delivery.
- Dynamic Customer Mobility: Data-driven segmentation relies on up-to-date customer profiles, ensuring businesses deal with customers based on the latest information in this dynamic digital era.
- Focused Customer-Centricity: Data provides precise customer insights, enabling businesses to stay focused and goal-oriented.
Best Customer Segmentation Tools
Kissmetrics is one of the top customer segmentation tools that helps brands unveil unlimited revenue potential. The software simplifies human behavior tracking to enhance engagement and drive revenue growth.
As of 2024, Kissmetrics continues to be trusted by over 10,000 companies, boasting significant transaction volume and daily event tracking.
- Multi-Channel Attribution: The tool allows businesses to attribute customer interactions and conversions across various marketing channels.
- A/B Testing for Different Flows: Businesses can conduct A/B testing on different user flows, enabling them to optimize user experiences and identify the most effective online marketing tactics for engagement and conversion.
- Churn Reduction: Kissmetrics helps businesses identify and address factors leading to customer churn. Companies can implement targeted strategies to retain customers by understanding the reasons behind customer attrition.
- Simple Dashboard: Kissmetrics provides a user-friendly dashboard that ties every action to a human, offering deep insights from all customer data in one easy-to-use interface.
- Simple Integrations: The tool facilitates seamless integration with other applications, allowing businesses to run reports easily from one place without complex data stitching.
Also See: List of the Top Marketing Tools
Baremetrics is a powerful subscription analytics software that provides businesses valuable insights to understand and optimize their performance.
The tool features smart dashboards for in-depth analysis and forecasting capabilities for well-informed projections.
Baremetrics empowers businesses to make data-driven decisions confidently, with features like augmentation to merge external data and segmentation to identify profitable customer segments.
- Control Center: The Control Center is the central hub, providing a quick and detailed business performance overview. This feature allows users to understand the critical aspects of their business at a glance.
- Smart Dashboards: Baremetrics provides smart dashboards that enable businesses to delve deep into the details of what’s driving growth and compare current performance with previous months. This facilitates a nuanced understanding of key metrics.
- Forecasting: The forecasting feature allows businesses to make well-informed projections for hiring, expansion, and departmental budgets, aiding in strategic planning.
- Benchmarks: Benchmarking metrics against similar companies provides context for performance evaluation, allowing businesses to understand how they compare within their industry.
- Goals: Businesses can track progress towards predefined goals and use this feature to rally their teams toward specific objectives, fostering a goal-oriented approach.
- Trial Insights: This feature enables users to add notes to evaluate how new campaigns, experiments, and enhancements impact key metrics during trial periods, aiding in optimizing customer acquisition strategies.
Also See: What Is An Ideal Customer Profile (ICP)?
MarketMuse is an advanced AI-driven customer segmentation tool designed to revolutionize content strategy and marketing efforts in 2024. Trusted by hundreds of content strategy and marketing teams, MarketMuse analyzes entire websites to provide personalized, objective insights.
- AI-Driven Content Audits: MarketMuse automates content audits, providing objective insights into how content is performing, what’s missing, and what to prioritize.
- Control Center SEO: The tool includes a Control Center specifically focused on SEO, allowing users to own their topics in search engine results pages (SERPs) by providing insights into keyword performance and content effectiveness.
- Cluster Creation & Analysis: MarketMuse helps users build content clusters efficiently, ensuring comprehensive coverage of topics. It provides insights on what topics to include, their value, and ranking difficulty, contributing to overall content strategy.
- Competitive Content Analysis: Users can gain insights into their competitors’ content strategies, identifying gaps and opportunities. The tool’s topic model reveals areas where competitors may have missed the mark in their content.
- Keyword Research: MarketMuse streamlines organizing and prioritizing keywords by clustering them based on relevance. This feature helps users focus on keywords with the best chances of ranking and building authority.
- Content Briefing: The Content Brief Generator provides blueprints for writers, offering structure on topics to cover, questions to answer, and links to include. This minimizes guesswork for writers and accelerates the content creation process.
- Content Optimization: MarketMuse’s AI helps speed up content creation while ensuring that content meets quality and comprehensiveness standards. This feature is essential for maintaining high-quality, relevant content.
Sprout Social is a top-notch customer segmentation tool with advanced algorithms and real-time data processing capabilities.
Offering customization options tailored to diverse business needs, the tool provides comprehensive analytics, seamlessly integrates with various data sources, and scales effectively for businesses of all sizes.
- Ease of Onboarding: The platform is designed for quick onboarding, ensuring teams can derive insights and value without spending extensive time on the learning curve.
- AI and Machine Learning Technology: Sprout Social leverages advanced AI and Machine Learning technology to guide users in making strategic business decisions based on accurate data. This technology enhances data insights and decision-making processes.
- Rich Social Data and Dashboards: Sprout Social enables users to prove their social efforts’ return on investment (ROI) by providing rich social data and customizable dashboards. Users can create tailored reports aligning with their business needs.
Totango is another segmentation tool to prevent churn, boost revenue growth, and enhance team productivity.
At the core of Totango are SuccessBLOCs, which are prebuilt customer success program templates embedded with industry best practices. These templates enable businesses to quickly get started, customize, and achieve their goals throughout their customer journey.
- Customer Health Integration: Totango integrates data from various sources across your tech stack to create a 360° view of customer health, enabling the identification of risks, opportunities, and task delegation.
- Collaborative Customer Portfolio Management: Allows teams to develop strategic account plans, manage day-to-day tasks, and create shared visibility for stakeholders at scale, regardless of the number of customers.
- Engagement Capabilities: Leverage integrated data to trigger and automate communications via email, in-app, videos, and more for various customer engagement models, ensuring interactions occur at critical moments.
- Integration with Existing Tools: Totango seamlessly integrates with a wide array of tools, including Salesforce, Slack, MS Dynamics, Segment, HubSpot, Zendesk, Zapier, Dropbox, Snowflake, Google Cloud, AWS, and more, providing a comprehensive view of customer health.
- Security and Compliance: SOC-2 certified, GDPR compliant, and supporting SCIM & SSO, Totango ensures enterprise-grade privacy and security.
- Metrics Improvement: Totango has demonstrated notable improvements in key metrics, including a 130% net revenue retention, 50% productivity improvement, 20% churn reduction, and a 30-point increase in NPS for its clients.
Also See: Customer Lifetime Value
User Guiding offers a complete user onboarding solution trusted by over 1000 teams worldwide. The market segmentation software enables organizations to enhance user onboarding, drive feature adoption, establish a resource center, employ in-product messaging, and gather valuable customer feedback.
- Code-Free Product Walkthroughs: UserGuiding allows users to create interactive and engaging product walkthroughs without coding skills, making it accessible for teams with varying technical expertise.
- Feature Adoption: UserGuiding helps organizations drive feature adoption by providing targeted guidance and information within the application, ensuring users understand and utilize key functionalities.
- In-Product Messaging: The tool enables organizations to implement in-product messaging, allowing for contextual communication with users delivering announcements, updates, or personalized messages directly within the application.
- Customer Feedback: UserGuiding includes features for collecting valuable customer feedback and helping organizations gather insights into user experiences, preferences, and areas for improvement.
- Onboarding Checklists: The platform supports the creation of onboarding checklists, helping users track their progress and ensuring they complete essential steps in their onboarding journey.
Insightly is a modern CRM platform that caters to sales, marketing, and customer service needs. The CRM functionality allows teams to centralize customer data, streamline sales processes, and foster long-term relationships.
- Marketing Automation: Insightly’s Marketing Automation feature enables the creating of engaging and personalized customer journeys. It includes intuitive and easy-to-use tools, A/B and multivariate testing, enterprise-grade segmentation, journeys, and dashboards.
- Customer Service Excellence: The Customer Service module helps exceed customer expectations with features like a convenient customer support portal, knowledge management, ticketing, insights, and SLA management.
Heap is a leading digital insights platform that completely understands customers’ end-to-end journeys. The segmentation tool facilitates swift improvements in conversion rates, retention, and overall customer satisfaction.
Used by over 10,000 companies, Heap provides an all-in-one solution for creating exceptional digital experiences.
- Complete Data Capture: Heap provides a single snippet that automatically captures the entire digital experience of every user on every platform, eliminating the need for complex engineering efforts. This results in the most comprehensive dataset available on the market.
- Session Replay for Full Context: Integrated session replay allows users to gain full context on every user action. Heap directs users to the exact point in a session they care about, saving time and effort in understanding why users take specific actions and what improvements can be made.
- Integration Capabilities: With over 100 integrations across the stack, Heap ensures that businesses can deliver the right information to customers at the right moment in their journey. This flexibility and connectivity enhance the overall utility of the platform.
- Data-Driven Decision-Making: Unlike other solutions offering quantitative or qualitative tools, Heap integrates both, providing complete visibility into all user actions. This integrated approach creates a new paradigm for data-driven decision-making.
Google Analytics is a powerful market segmentation platform that empowers small and large businesses.
The market segmentation software enables users to unlock customer-centric measurement, optimize marketing performance, and improve return on investment (ROI).
- Cross-Platform Tracking: Google Analytics allows businesses to track user interactions across various platforms and devices, providing a holistic view of the customer journey.
- Customer-Centric Measurement: The platform focuses on understanding how customers interact with websites and apps throughout their lifecycle, enabling businesses to tailor their strategies based on user behavior.
- Machine Learning Insights: Leveraging machine learning algorithms, Google Analytics helps uncover new insights and predictions, assisting businesses in making data-driven decisions for improved ROI.
- Integration Capabilities: Google Analytics integrates with other Google solutions such as Google Ads, Search Ads 360, and Display & Video 360. This integration ensures a cohesive approach to marketing efforts.
- User-Friendly Interface: With an easy-to-use interface, businesses can quickly analyze data, create customizable reports, and collaborate efficiently. The platform simplifies the complexities of data analysis.
- Automation Features: Google Analytics incorporates built-in automation features, reducing manual reporting efforts and enhancing the efficiency of data analysis.
Qualtrics is a comprehensive customer experience management solution that transforms customers into fanatics.
With an advanced listening engine, predictive intelligence, and closed-loop actioning capabilities, the software empowers businesses to understand customer experiences and drive impactful actions.
- Ultimate Listening Engine: Qualtrics allows businesses to meet customers where they are, capturing real-time feedback across 27 channels and 128 data sources. This comprehensive listening capability provides a complete view of customer sentiments and experiences.
- Predictive AI (iQ): The platform leverages predictive intelligence to uncover trends, patterns, and key drivers of customer loyalty. With iQ, businesses gain prescriptive insights instantly, enabling them to focus on areas that will significantly impact customer satisfaction.
- Automated Actions: CustomerXM automatically sends recommended actions to the right teams, integrated with their tools. This feature streamlines the process of improving customer satisfaction, spending, and loyalty. Drag-and-drop integrations ensure actions are triggered in CRM, ticketing systems, messaging apps, and more.
- Business Value Realization: Qualtrics CustomerXM goes beyond measurement to help businesses take actions that generate real business value. The scalable and sustainable design ensures that actions are driven throughout the organization, making a meaningful impact.
Pricing: Custom pricing is available
Survicate is an effortless survey software designed to make customer feedback collection a seamless business experience. Focusing on simplicity, customization, and integrations,
Survicate enables users to build surveys in minutes using a drag-and-drop creator without coding requirements.
The platform supports multi-channel feedback collection, including in-product, website, email, link, and mobile surveys, covering every step of the user journey. The customer segmentation tool stands out because it can achieve high survey response rates and provide valuable insights through an intuitive interface.
- Multi-Channel Feedback Collection: The platform supports feedback collection through various channels, including in-product surveys, website surveys, email surveys, link surveys, and mobile app surveys. This ensures comprehensive coverage throughout the user journey.
- Integrations: The tool offers 1-click native integrations with many popular tools and platforms, such as HubSpot, Google Analytics, Slack, Salesforce, and many more. This seamless integration makes sending survey data to other systems easy for further analysis and action.
- Automated Surveys: Survicate enables the automation of surveys at every step of the user journey. This feature allows for continuous feedback collection, providing a constant stream of valuable insights.
- Advanced Targeting: Users can employ advanced targeting options to display surveys to users when they are most likely to respond. This ensures relevance and enhances the overall survey experience.
- High Response Rates: Survicate boasts higher than average online survey response rates, capturing responses from partially completed surveys. This leads to more comprehensive and valuable feedback.
Also See: Customer Acquisition Cost
Pendo is an all-in-one Product Experience Platform designed to help businesses improve software experiences for their customers. With a suite of tools under one roof, Pendo offers features such as Product Analytics, In-App Guides, Session Replay, Feedback, and Roadmapping.
One notable addition is Pendo AI, providing new AI capabilities to power digital experiences. Pendo’s platform ensures efficient, hyper-personalized product experiences, reducing costs, increasing demand, and retaining customers. Trusted by leading companies globally, Pendo offers a comprehensive, easy-to-use solution that enables businesses to build best-in-class products, deliver successful digital experiences, and maximize engineering resources.
- Product Analytics: Gain insights into user behavior and interactions with your product. Understand how users navigate through your software to optimize their experience.
- In-App Guides: Communicate with users directly within the application. Create interactive guides to help users understand features or complete tasks.
- Feedback: Collect feedback from users seamlessly. Understand what users want and need to inform product decisions.
- Roadmapping: Align all product stakeholders with visual roadmaps. Collaborate on product planning and ensure everyone is on the same page.
- Validate: Conduct product discovery at scale. Test and validate ideas before implementation to ensure you build what users value.
- Data Sync: Export your Pendo data for external use. Integrate Pendo insights with other tools and systems.
Utilizing technologies like AI and machine learning, customer segmentation tools deliver actionable insights, enabling precise market segmentation.
Collectively, these tools contribute to the evolving landscape of customer segmentation, empowering businesses to make informed decisions and deliver personalized experiences in the dynamic market of 2024.