Portrait of author Catherine Frame
Catherine Frame

Customer Intelligence Lead

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Customer segmentation: say hello to headless segmentation, a new approach to marketing

By Catherine Frame on November 16, 2022

In the current turbulent economic times, marketing teams are having to think more creatively as they wage the battle to acquire, engage and retain their customers. But where do they start?

How do they know who to target, when to reach them, what products they’re interested in and their preferred channel?

Most businesses are now starting to realize the benefits of effective, data-driven customer segmentation — and here at Peak, we’re pioneering a new marketing approach that we’re calling headless segmentation. What do we mean by Headless Segmentation? Let’s start with the easy bit: segmentation.

What is customer segmentation?

Customer segmentation is a fundamental principle of marketing. It is the process of creating cohorts of customers, divided into groups of similar commonalities such as demographics, product preferences or value to a company. So, how is headless segmentation any different?

What is headless segmentation?

From an architectural point of view, the term ‘headless’ refers to outputs being driven by APIs which are decoupled, and stand independently from one another. The main benefit of this approach is that it allows for added agility; as APIs are not interdependent, changes can be made with minimal risk to the overarching infrastructure. 

In this context, when we apply ‘headless’ to customer segmentation, we mean that the segmentation isn’t tied to a specific system or channel. The segmentation can therefore be used across multiple platforms and systems, to provide a consistent journey to a customer.

Headless customer segmentation with AI for marketing teams

Why is headless segmentation important?

Gone are the days of looking at customers and their behaviors in an isolated view. To win in the modern era, marketing teams operating in every industry must focus on creating a seamless experience for their customers, across all available touchpoints — from email marketing and onsite recommendations to social media ads and the in-store experience.

The only way to effectively do this is to employ an effective headless customer segmentation strategy. By taking the steps required to remove channel bias and data silos, and looking at meaningful cohorts driven by key and integral data points, you can ensure that you’re always serving your customers in the best way possible.

Who’s responsible for headless customer segmentation?

So, who needs to drive a headless segmentation strategy? In short, everyone within your organization, not just your marketing team!

Headless Segmentation breaks down the data silos that exist between your channels and your business-wide systems. Therefore, the only way to deploy this approach successfully is for all the teams within your organization to work collaboratively, with the same common goal in mind — and to focus on managing and surpassing a customer’s expectations at every available opportunity, across all touchpoints.

 

What is the perfect tech stack to allow for Headless Segmentation?

The perfect  tech stack to set you up for Headless Segmentation success comprises of the fundamental layers: Centralized data + artificial intelligence + execution platform.

 

1. Centralized Data – e.g Snowflake
A powerful data warehouse, Snowflake enables users to organize data in a structure that is most meaningful to their business. It centralizes data, creating a repository from which all MarTech solutions can run – both now and in the future.

 

2. AI platform – e.g Peak

On Peak, users can rapidly deploy multiple AI applications from a single platform, eliminating the need to leverage a complex web of individual solutions. The platform can be used by both technical and non-technical teams, giving decision makers access to a single, predictive view of their customers. Filters and segments are fully customizable, so users can leverage the platform and its apps to deliver on the objectives that matter most to their business, for example, identifying when customers are in-market to purchase, and the specific items they’re likely to buy.

 

3. Execution platform – e.g Braze
Braze is a comprehensive customer engagement platform that powers relevant and memorable experiences between consumers and the brands they love. Context underpins every Braze interaction, helping brands foster human connection with consumers through interactive conversations across channels that deliver value quickly and continuously.

 

Interested in customer segmentation and marketing? Join us for a webinar on headless segmentation!

I’m super excited to be hosting a new webinar on Wednesday 7 December (14:00 GMT), focused around this exciting new concept of headless segmentation.

In this webinar I’ll talk to you about how artificial intelligence (AI), when applied in the right way, is transforming marketing teams — enabling scale, automation and, ultimately, personalization for your customers like never before. Get involved and sign up via the link below!

Headless Segmentation: The only way to win with your customers

Date: 7 December 2022
Time: 14:00 GMT
Location: Online

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