What is dynamic segmentation?
Dynamic segmentation categorizes customer audiences into distinct groups based on pre-defined rules a marketer creates.
Those rules are often based on individual customer demographics, online browsing behavior, and purchase history that the marketer finds relevant, and wants to send more personalized messaging to at scale.
With these rules in place, dynamic segmentation tools pull individuals into or remove them from existing segments, prompting marketing automation flows and campaigns to those individuals that align with where they are at in their customer journey.
Key components of dynamic segmentation
Unlike static segmentation, which creates fixed audience segments, dynamic segmentation uses real-time data to form segments that grow or contract automatically based on specific rules.
- Rules engine: As the core of dynamic segmentation, your rules set the conditions determining which customers belong in a particular segment. For instance, you can set a rule to include customers who have purchased in the last 30 days.
- Data integration: Data integration means pulling data from all your existing data sources, like your ecommerce platform, CRM, and email marketing software.
- Real-time updates: Unlike static segmentation, dynamic segmentation continuously updates customer segments as new data comes in. This ensures that your marketing campaigns are always based on the most recent information and that messages are delivered optimally.
3 benefits of dynamic segmentation
- More conversions from more personalized messages: When you divide your audience into more specific groups based on behaviors, preferences, and demographics, you can create highly targeted marketing messages that resonate with each segment. This increases the likelihood of a purchase from a message.
- Higher engagement from more relevant marketing campaigns: Create more relevant and compelling content by tailoring your messaging to people’s specific needs and interests at their specific stage of your customer journey. This leads to higher click rates and order rates.
- Long-term improvement with continuous learning: Dynamic segments help you to identify patterns, trends, and insights to inform your marketing strategies. This helps you make data-driven decisions, allocate resources effectively, and refine your campaigns for maximum impact.
Dynamic segmentation vs. static segmentation
Dynamic segmentation uses marketer-created rules to group your audience based on real-time data and behavior, creating segments that change based on your customers’ actions. This allows marketers to send messages to prospects and customers with more accuracy, knowing they’re reaching the right people at the right time with the right message.
With static segmentation, a marketer creates predefined segments based on fixed criteria, such as demographic information like age, gender, or location. Static segmentation can be incredibly useful for some marketing campaigns and automations. For instance, you can create a static segment of people who purchased a specific item at a specific discount over BFCM 2024. This audience might respond better to discounts or holiday messages, for instance, and you’ll be able to easily create that content and target those messages with static segmentation.
Within Klaviyo, dynamic segments are called “segments” and static segments are called “lists.”
Remember that while dynamic segmentation leads to better personalization, it requires continuous customer data analysis. Static segmentation may be more suitable if you have a well-defined target audience with stable characteristics.
How to implement dynamic segmentation
- Identify relevant data points: Identify the data points most relevant to your business and marketing objectives. These could include demographic information, purchase history, engagement level, or other, more granular online behaviors. These are the building blocks of your rules engine, which is what creates segments based on common characteristics or behaviors.
- Develop segmentation strategies and best practices: This step involves creating segments based on specific criteria and defining the attributes that make each segment unique. For example, you might segment customers based on location, purchasing behavior, or brand engagement. Review and refine your segmentation strategies to align with your marketing goals and deliver meaningful results.
- Use automation tools for dynamic segmentation: These tools can help automate the process of gathering and analyzing customer data, creating segments, and delivering targeted messages.
Using Klaviyo for dynamic segmentation
Dynamic segmentation starts with data. Klaviyo integrates with your ecommerce platform, CRM, and other data sources, centralizing customer data from your existing tech stack.
With Klaviyo, you can segment your audience based on purchase history, browsing behavior, demographic information, and more. Klaviyo’s intuitive segmentation builder simplifies the process of creating and managing segments. You can easily set up rules and conditions to define your segments, and Klaviyo will automatically update them as customer data changes.
Once you have your dynamic segments, use Klaviyo to send automated messages based on specific triggers and actions and deliver personalized messages to your audiences at the right time.
Sign up for Klaviyo and get started today.