What is Customer Segmentation?
Segmentation is the essential strategy for tailoring rewards, communication, and program experiences to different customer groups. By understanding the unique needs, preferences, and behaviors of different segments, programs can: Increase engagement, boost customer lifetime value, optimize program cost, and even reduce churn.
Example: Targeting high-spending members with exclusive early access events, while offering free samples to new members personalizes program experiences and tailors rewards to different needs, maximizing engagement for each segment.