A: Segmentation models are tools used to help organizations manage and understand their market segments.
In addition to the different types of segmentation, organizations have access to different types of segmentation models. For instance, most companies use demographic models to create and deliver content based on gender, but depending on the industry and the business goals, different companies will choose to segment their audience based on different traits or identifying factors.
There's also a model that incorporates information about recency, frequency, and monetary value (RFM) of interactions. An RFM model looks at the recency of the last purchase, the total number of purchases a customer may have made, or the amount spent. That helps companies start to identify their high-value customers, which are usually ultimately who they're trying to identify. Then, based on that RFM segmentation, you can identify where those high-value customers come from and the characteristics they share, which will enable you to find and target potential customers with similar traits.
Another model a company might look at is a customer status model. A customer status model would look at customer activity to see if a customer has lapsed or become inactive in some way. Different companies will define customer status differently and will be able to break that information down depending on their strategy and their business. But typically, a customer status model will help a company identify the last time a customer engaged with them. Often, understanding past behavior can help you make predictions about what your customers might do in the future, particularly when it comes to things like purchasing behavior. Some of that information could be tied to big events, like Black Friday or back to school season, to show how the customer behaviors for your target market change, peak, or drop for those particular times. So behavioral segmentation models like the customer status model can be really helpful in identifying any fluctuations around purchasing or customer actions.
Psychographic models are more targeted toward attitudes or beliefs. A brand may use them to identify commonalities with particular segments based on how that group views different statements or get a sense for how a group of customers perceives different colors or other aspects of the brand identity.
Another segmentation model growing more common today looks at device use. With the ever-increasing number of channels available, it can be helpful to identify how customers are accessing and interacting with your brand.