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In our previous blogs, we’ve introduced you to the concept of hybrid segmentation and the benefits around boosting customer engagement.

Hybrid segmentation is a dynamic approach that combines the strengths of survey-based and database customer segmentation while addressing their limitations. It’s about understanding your customers deeply, delivering personalised experiences, and driving business growth.


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In this blog post, we’ll delve into two key benefits of hybrid segmentation, to gain a competitive advantage and achieve more value out of existing customers.

Increased competitiveness

In today’s fiercely competitive business landscape, standing out from the crowd is essential for success. Traditional segmentation methods often treat customers as a homogeneous mass, resulting in generic shopping experiences that fail to capture individual preferences. Hybrid segmentation, on the other hand, empowers businesses to compete effectively by tailoring shopping experiences to individual customer segments.

Let’s take the example of a leading Swedish retailer that used hybrid segmentation to reimagine its in-store shopping experiences. Survey profiles revealed what was core to its two target segment customers when shopping: their different motivations, drivers and barriers to purchase when shopping in-store. Segment A, craved an exciting and inspirational experience, and wanted a store ambiance that reflected this desire. In contrast, Segment B, looked for a more informative and reassuring journey.

The retailer then implemented these customer journey variants in two of its popular stores to gauge their impact on footfall and engagement. The results were illuminating. By measuring footfall and analysing customer behaviour, the retailer identified the most desirable shopping journey, helping it refine its in-store strategies further. This not only increased competitiveness but also positioned the retailer as a leader in re-imagining the retail experience.

More value out of existing customers

Your existing customer base is a goldmine waiting to be tapped. Hybrid segmentation helps you mine this gold by building stronger relationships, increasing revenue, and driving profitability. 

By personalising interactions and understanding your customers’ needs, you strengthen relationships with existing customers. This not only increases their lifetime value but also reduces churn.

A leading insurer empowered its agents with a one-page online document tailored to each segment. When a tagged customer phoned the company, the document guided agents on how to navigate conversations, focusing on specific emotional drivers and related products to those drivers.

The result? More meaningful interactions, happier customers, and increased sales. 

Increased product uptake is a benefit raised in our last blog, where our travel company client created and effectively communicated a new holiday aimed at a target segment. The result was a 215% uptake of the new product versus other holiday products (for the target segment), showcasing that understanding customers and then being able to target them with the right communication means you can extract more value out of existing customers.

In the fast-paced world of business, gaining a competitive edge is the key to thriving and growing. Traditional segmentation approaches may have their merits, but they often leave businesses struggling to differentiate themselves and meet the evolving expectations of their customers.

If you have a database, hybrid segmentation offers businesses the tools they need to not just compete but excel in their respective industries. By understanding customer motivations, customising experiences, and continually strengthening relationships with existing customers, hybrid segmentation equips businesses to rise above the competition.

Look out for our next blog, where we’ll explain how hybrid segmentation connects cross-functional teams, ensuring a unified approach, and provides demonstrable ROI.


An introduction to hybrid segmentation

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