Voice of the Customer - Customer Segmentation

May 16, 2021

Voice of the Customer - Customer Segmentation

Voice of the customer surveys are the backbone for any customer experience improvement initiative.

The way we design a customer feedback survey has a bearing on the accuracy of the understanding of the customers from the survey results.

Customer Segmentation is one of the key elements of a robust survey design.

 

What is Customer Segmentation?

Customer Segmentation divides the customer base into groups of customers based on certain common factors like Demographics, Geography, Psychographics, and Behaviors.

 

 

Customer Segmentation helps to divide the whole population of customers into smaller homogenous groups, which helps in:

  • Getting a better understanding of customer needs and wants
  • Tailor products or services and
  • Provide better customer experiences

 

Let us look at a simple example of hotel guests. The population of guests consists of all types like international, local, frequent, and occasional guests. Needs wants, priorities, challenges, etc., would be different for each of them. Segmentation of the guests helps us to divide the guests, as shown in the picture below. Now we can design the survey considering all types of guests we have. This approach provides a more granular understanding to our customers.

 

Most survey tools have the capability to implement customer segmentation. Next time when you are stating a Voice of the Customer initiative, please ensure to use Customer Segmentation to serve the customer's needs better and improve customer experience.