Using Growth Segments
Customer segmentation is the process of dividing a customer base into smaller groups with similar characteristics. This can be based on a variety of factors, such as demographics, interests, behaviors, and more. The goal of customer segmentation is to better understand the needs and wants of different groups of customers, so that businesses can create targeted marketing campaigns and offer personalized experiences.
For segment implementation details, chech out the ActionHub.ai Segmentation API.
ActionHub provides integrated segmentation based on ActionHub action recommendations optimized for engagement growth.
Growth Segments
Growth Segments can we broken out into segments based on recommended actions and recommended categories (Discovery Segments) as weel as raw customer event histories (Base Segments).
Base Segements vs Discovery Segments
ActionHub provides marketers with two types of segments based on labels associated with assets and events. Base Segments, reflecting customer histories, and Discory Segments leveraging the power of ActionHub.ai perdictve modeling to growing user engagement. While Base Segments can provide valuable inputs to traditional targeting strategies, for best results we strongly encourage the use of Discovery Segments for growing user engagement. The implementation logic for these two segment types is detailed below.
Base Segments
Base Segments capture users who have a history of engagement with certain assets or categories. For example, customers of a fashion retailer in the "Buy Swimwear" Base Segment are those customers who have historically high engagement with the "Swimwear" categorty. Echo Segments are best for driving repeat purchases, or "Depth Strategies".
Base Segments are frequency adjusted meaning the values associted with a users history with a label or asset event reflect the number of enagements and their recency so newer, more frequent engagement events are weighted more heavily.
Base Segments can be built around engagement with products (asset_ids), categories (labels), and event types.
| Parameter | Notes |
|---|---|
asset_ids | When specified, history with ANY asset is required for inclusion in the segment. |
labels | When specified, history with ANY labels is required for inclusion in the segment. |
event_types | When specified, history with ANY event_type is required for inclusion in the segment. |
min_weight | Excludes customers whose associated asset_ids and labels weights are bellow the specified weight. Default value is 0. Learn more about action weights in ActionHub |
Discovery Segments
Discovery Segments reflect the best next category for customers driving long-term engagement and do not include previously engaged categorys or labels. For example, customers of a fashion retailer in the "Buy Swimwear" Discovery Segment are those customers who may have engaged with products such as "sandals" or "beach towels" which have historically indicated future engagement with the "Swimwear" categorty. Discovery Segments are best for situations where a marketer wants to expand customer engagement into a more broad set of categories, some of which may be new to the customer, or "Breadth Strategies".
Discovery Segments can be built around engagement with products (asset_ids), categories (labels), and event types.
| Parameter | Notes |
|---|---|
asset_ids | When specified, a recommendation with ANY asset is required for inclusion in the segment. |
labels | When specified, a recommendation with ALL labels is required for inclusion in the segment. |
event_types | When specified, a recommendation with ANY event_type is required for inclusion in the segment. |
min_weight | Excludes customers whose associated asset_ids and labels weights are bellow the specified weight. Default value is 0. Learn more about action weights in ActionHub |
Segment Usage
There are many different ways that customer segmentation can be used. Some common examples include:
- Identifying high-value customer segments: By understanding which customer segments are most valuable to a business, companies can prioritize their marketing efforts and resources towards these groups.
- Developing targeted marketing campaigns: By segmenting customers based on their characteristics, businesses can create marketing campaigns that are more relevant and effective for specific groups of customers.
- Improving customer experience: By segmenting customers and understanding their needs and preferences, businesses can tailor their products, services, and customer support to better meet the needs of different groups of customers.
- Analyzing customer behavior: By segmenting customers and analyzing their behaviors, businesses can better understand how different groups of customers interact with their products and services, and identify trends and patterns that can inform future marketing and product development efforts.