Feature image Data Segmentation

The Ultimate Guide To Data Segmentation

By Brian Laleye · October 18, 2022 · 7 min read

Customer segmentation divides consumers into distinct, significant, and homogeneous categories based on various qualities and characteristics.

It’s a marketing strategy for distinguishing outgrowths that enables companies to understand their clientele better and create distinctive dependency.

Therefore, in today’s cutthroat industries, organizations need to have a thorough understanding of their customers. This is where the idea of data segmentation in data mining comes in!

To identify the underlying categories, businesses must focus on their target audience’s needs, wants, attitudes, behaviors, preferences, and perceptions.

As a result, you will be able to manage and target new consumers more effectively with specialized product offers and marketing campaigns. 

Let’s dive into what Data Segmentation means, its advantages and how you should go about it!

What is Data Segmentation?

According to Gartner, “data segmentation” is an analytical method used to group clients into mutually exclusive and collectively comprehensive groups so that they may be prioritized based on strategic objectives.

In summary, segmenting data has become crucial in today’s business environment.

A data segmentation plan is essential for marketing, product development, sales, and client retention to assist your business reach its full potential, whether you’re a small or colossal firm.

What is Data Mining?

Cleaning up unstructured data, seeing trends, and creating and testing such data models are all parts of the process known as data mining.

Since data mining is often utilized in several data projects, combining it with analytics, data governance, and other data operations is simple. It includes statistics, machine learning, and database systems.

Businesses may use data mining to find process flaws and errors, such as data entry errors or bottlenecks in the supply chain.

Targeting vs Segmentation: Key Distinctions

We need to be aware of the distinction between segmentation and targeting.

Despite being similar, these two ideas allude to separate statements.

As we discussed previously, information is segmented into groups so that you may use it more efficiently.

For instance, you may divide your list according to information like job titles, firm size, technographic, or other identifying data when developing a cold email campaign.

This will guarantee that you effectively and specifically target each person on the list.

Your targeting is more precise and efficient, thanks to your segmented data.

What role does targeting play in this, then?

The practice of targeting helps your sales and marketing teams choose the best ways to sell to your target market.

Finding the most effective method to reach your ideal consumers may be necessary (e.g. running ads on LinkedIn vs on Twitter).

You can successfully target consumers since segmenting comes before targeting.

Your targeting will never be as precise as you need it to be if you don’t have a reliable strategy for segmenting your data.

Because they are communicating to the incorrect people, your sales staff will find it difficult to succeed with their cold emails and won’t be able to complete many transactions.

Principal Advantages of Data Segmentation

The entire firm benefits from transparently segmenting data.

Let’s examine why your business should be mindful of its data segmentation procedures.

Increase the success rate of cold outreach

Before contacting any accounts, your team may use data segmentation to find those who meet your SQL criteria.

This will be very simple if you’re utilizing a B2B data provider like Linkedin to identify leads.

Your sales staff will save a ton of time if they are aware of a company’s firmographic and technographic information as well as the identities of the key decision-makers.

Better targeting and messages based on your learning will increase your success rate with cold emails.

You can also enrich your data with third-party providers.

Creating leads

Every day, your sales and marketing teams utilize data to inform their choices about who to reach out to and how to target.

Your staff can work more efficiently if they are aware of the top clients, what matters to them, and the best methods of communication.

Your conclusions may also rank leads and give top priority to well-qualified accounts in your pipeline.

Make Support Requests a Priority

Your customer care team will be able to prioritize their task by knowing who your priority clients are.

Your support team will be able to prioritize help inquiries and give account representatives feedback on important accounts after they have identified who your most significant clients are.

Talking Strategies: Data Mining & Data Segmentation

With data segmentation in data mining, a company may better comprehend its target market’s needs, tastes, and demographics.

Establish clear objectives for data collecting that aren't excessively ambitious

Choosing what information you need vs what information you want, how you get information, and how you organize your inquiries may all be helped by this stage. 

For instance, if you wanted to improve the design of your product, you would concentrate your data collection efforts on clients and prospects who were further along the sales funnel.

Your inquiries would be about how they interacted with your product, such as which features they used the most or how frequently they used it.

Using data mining to close the gap

Numerous models and methods for data mining are used, and these techniques are combined with segmentation analysis.

Discovering naturally occurring groups may be done using a clustering method. An association algorithm predicts that users of your product will undoubtedly utilize additional services.


At RestApp, we’re building a Data Activation Platform for modern data teams.

We have designed our next-gen data modeling editor to be intuitive and easy to use.

If you’re interested in starting with connecting all your favorite tools, check out the RestApp website or try it for free with a sample dataset.

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Laurent Mauer
Laurent Mauer
Laurent is the head of engineer at RestApp. He is a multi-disciplinary engineer with experience across many industries, technologies and responsibilities. Laurent is at the heart of our data platform.

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