Marketing uses both manual and dynamic segmentation techniques, especially for audience targeting. Below is a summary of their distinctions:
- Definition: Using this conventional approach, marketers manually classify consumers according to predetermined attributes like geography, gender, age, or purchase history or level of engagement.
- Customization: Customers are divided into predetermined groups by marketers who establish the criteria.
- Static Nature: After being divided into groups, the groupings stay that way until marketers manually update or modify them.
- Time-Consuming: Requires labour-intensive manual updates and improvements on a regular basis.
- Example: Making a category just for clients who have bought something during the last month, ranging from 18 to 25.
- Definition: With the use of automated technologies, clients are updated and grouped in real-time according to their changing preferences, behaviours, and interactions with the company.
- Adaptability: New data is continuously added to the segments. Based on their activities or modifications to the data, customers can automatically transition between categories.
- Automated Process: depends on machine learning or algorithms, which increases its scalability and efficiency.
- Real-Time Updates: To ensure relevance, segments are dynamically modified based on client behaviour.
- Example: A client may be dynamically categorised into a "potential re-engagement" category for targeted offers if they consistently leave their basket empty.
- Static vs. Dynamic: While dynamic segmentation adjusts in real time, manual segmentation remains fixed until updated.
- Effort: Dynamic is more automated and efficient than manual, but manual requires more human participation.
- Relevance: While manual segmentation may quickly become old, dynamic segmentation guarantees that targeting remains relevant as client behaviours evolve.
In conclusion, dynamic segmentation is automatic, adaptable, and ever-evolving whereas manual segmentation is static and requires manual updates.
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