7 Best Customer Segmentation Tools in 2024

Are you struggling to make sense of your customer data? You're not alone. We've done extensive research on customer segmentation tools to help you navigate this challenge.

Understanding your customers is crucial for business success. With numerous tools available, choosing the right one can be overwhelming. That's where we come in. We've carefully selected and analyzed the 7 best customer segmentation tools on the market.

We're excited to share our findings with you. This guide offers an in-depth look at customer segmentation tools, covering features, advantages, disadvantages, and pricing options.

Whether you're running a small startup or managing a growing enterprise, we've identified options to suit your specific needs.

Before we delve into the details, let's address a couple of important questions:

How can customer segmentation tools drive business growth?

1. Personalized Marketing: By dividing your customer base into distinct groups, you can tailor your marketing messages to resonate with each segment's specific needs and preferences
   
   

2. Improved Product Development: Understanding different customer segments helps in developing products or features that cater to specific user needs
   
   

3. Enhanced Customer Experience: Segmentation allows for customized user experiences, leading to higher satisfaction and loyalty
   
   

4. Efficient Resource Allocation: By identifying your most valuable customer segments, you can allocate resources more effectively to maximize return on investment
   
   

5. Targeted Retention Strategies: Segmentation helps in identifying at-risk customers, allowing for targeted retention efforts
   
   

What features should I look for in customer segmentation tools?

1. Data Collection and Integration: The ability to gather data from multiple sources and integrate it seamlessly
   
   

2. Advanced Analytics: Look for tools that offer predictive analytics, machine learning capabilities, and real-time data processing
   
   

3. Flexible Segmentation Criteria: The tool should allow for segmentation based on various factors like demographics, behavior, psychographics, and more
   
   

4. Visualization and Reporting: Clear, intuitive dashboards and customizable reports are crucial for understanding and acting on insights
   
   

5. Integration Capabilities: The tool should integrate well with your existing marketing and CRM systems
   
   

6. User-Friendly Interface: Even team members without technical expertise should be able to create and analyze segments
   
   

7. Scalability: As your business grows, your segmentation tool should be able to handle increased data volume and complexity

Now that we've covered the basics, let's dive into our comparison of the 7 best customer segmentation tools available today.

1. Hyperaktiv

Hyperaktiv is a fast, easy-to-use platform that combines customer segmentation with growth copilot capabilities. It's designed for businesses seeking quick insights and immediate actions to drive user engagement and conversion. This tool is particularly suited for small to medium SaaS companies looking for a straightforward, actionable approach to user analytics and growth strategies.

Key Features

1. Automatic Segmentation: Segments users by lifecycle stage, engagement level, and Ideal Customer Profile (ICP) match
   
   

2. User Profile Insights: Offers detailed user profiles through advanced data enrichment
   
   

3. Lifecycle Tracking: Shows exact time between each stage of the user lifecycle
   
   

4. Acquisition Channel Evaluation: Rates the effectiveness of various acquisition channels
   
   

5. Quick Setup: Designed to be ready to use in less than 10 minutes
   
   

6. Retention Analysis: Identifies converted users who have gone idle, flags churn risks, and provides a comprehensive timeline of each user's engagement over time

Pros

• Rapid implementation and user-friendly interface
  
  

• Holistic user journey tracking
  
  

• Actionable insights with specific recommendations
  
  

• Efficient acquisition channel evaluation
  
  

• Unique segmentation capability: The only tool that allows you to segment users and see engagement and ICP match in each lifecycle stage

Cons

• Limited chart-building capabilities
  
  

• Focused primarily on PLG SaaS businesses, which may limit applicability for other industries

Pricing

• Free: €0/month (Up to 1K monthly active users)
  
  

• Starter: From €49/month (Up to 5K monthly active users)

Ideal For

Small to medium-sized businesses seeking a straightforward, actionable approach to user analytics and customer segmentation.

2. Segment
   
   

Segment, a Twilio company, is a powerful customer data platform designed to unify customer data from various sources and enable personalized communication.

Key Features

1. Dynamic Segmentation: Creates segments based on real-time customer data
   
   

2. Unified Customer Profiles: Gathers data from mobile and web apps, along with 300+ software integrations
   
   

3. Real-Time Audience Creation: Offered through the Twilio Engage product
   
   

4. Cross-Channel Segmentation: Tracks and segments customers across various channels and devices
   
   

5. Profiles Sync: Automatically syncs segmented customer profiles to your data warehouse

Pros

• Mature infrastructure for event collection and segmentation
  
  

• Extensive integration capabilities
  
  

• Easily scalable for growing businesses
  
  

• Enables personalized communication that resonates with specific segments

Cons

• Creating exclusionary audiences can be challenging
  
  

• Potential for high costs as user base grows
  
  

• Complex setup process may require significant resources

Pricing

• Free: Limited to 1,000 monthly tracked users (MTUs)
  
  

• Team: Starts at $120/month for up to 10,000 MTUs
  
  

• Business: Custom pricing for high-volume enterprises

Ideal For

Businesses of all sizes looking to elevate customer interactions through advanced segmentation, refine their marketing planning process, and boost conversion rates.

3. Userpilot

   
   

Userpilot is a product growth platform that specializes in user activation, feature adoption, and expansion revenue. Its core strength lies in its advanced segmentation capabilities, which are grounded in product usage analytics.

Key Features

1. Behavior-Based Segmentation: Create precise customer groups based on in-app behavior
   
   

2. Multi-Factor Segmentation: Segment users based on device type, location, engagement data, and survey responses
   
   

3. Advanced Analytics for Segmentation: Analyze product usage data and monitor engagement on in-app flows
   
   

4. Integration-Enhanced Segmentation: Leverage data from integrated tools for more in-depth segmentation
   
   

5. Segment-Specific Actions: Target specific segments with personalized onboarding experiences.

Pros

• No-code builder for easy segment creation and targeting
  
  

• Comprehensive event tracking for detailed behavioral segmentation
  
  

• A/B testing capabilities to optimize experiences for different segments
  
  

• Variety of UI patterns to engage different user segments

Cons

• Potentially steep learning curve for advanced segmentation features
  
  

• Limited customization options for some segmentation use cases
  
  

• No mobile app support, limiting cross-platform segmentation

Pricing

• Starter: $249/month
  
  

• Growth: $749/month
  
  

• Enterprise: Custom pricing (Prices based on annual billing)

Ideal For

SaaS businesses looking to improve customer retention and activation through advanced user segmentation and targeted engagement strategies.

4. Baremetrics

Baremetrics is a powerful analytics tool designed specifically for subscription-based businesses. While its primary focus is on subscription analytics, it offers robust customer segmentation features that can provide valuable insights for SaaS companies.

Key Features

1. Customer Segmentation: Create and save groupings of customers based on various criteria
   
   

2. Cohort Analysis: Analyze how different groups of customers behave over time
   
   

3. Churn Analysis: Track user churn, revenue churn, and net revenue churn
   
   

4. Trial Insights: Monitor customer behavior during trial periods
   
   

5. Revenue Analytics: Detailed analytics for subscription revenue, including MRR, ARR, and customer lifetime value

Pros

• Specialized in subscription analytics, ideal for SaaS businesses
  
  

• User-friendly interface with intuitive dashboards
  
  

• Comprehensive revenue insights and churn analysis
  
  

• Seamless integrations with popular payment platforms

Cons

• Limited functionality for non-subscription-based businesses
  
  

• Pricing may be steep for smaller businesses or startups
  
  

• Not a full customer experience tool
  
  

• Potential learning curve for those unfamiliar with financial analytics

Pricing

• Pricing is based on your current Monthly Recurring Revenue (MRR)
  
  

• Plans start at $129 per month for businesses with lower MRR
  
  

• Higher-tier plans available with additional features for businesses with larger MRR

Ideal For

Subscription-based SaaS companies looking for deep insights into customer behavior, revenue patterns, and churn analysis, with a focus on using segmentation to drive business growth and improve retention.

5. Kissmetrics

Kissmetrics is a powerful analytics platform that focuses on person-based analytics, allowing businesses to track, analyze, and optimize the customer journey across multiple touchpoints and devices.

Key Features

1. Person-Based Analytics: Assigns a unique identifier to each user, persisting across sessions and devices
   
   

2. Cohort Analysis: Group users based on shared characteristics or behaviors
   
   

3. Funnel Analysis: Visualize the customer journey and identify drop-off points
   
   

4. Multi-Channel Attribution: Determine which marketing channels drive the most conversions and revenue
   
   

5. Customer Segmentation: Segment customers based on behavior, demographics, and product usage

Pros

• Comprehensive view of customer behavior across multiple touchpoints
  
  

• Ability to tie product analytics to marketing metrics
  
  

• Geared towards small and medium-sized businesses (SMBs)
  
  

• Clean, streamlined dashboard for easy data interpretation
  
  

• Extensive resource and support center to shorten the learning curve

Cons

• Pricing may be steep for some SMBs ($299/month billed annually)
  
  

• No self-service option; demo request required
  
  

• Limited customization options for report presentation

Pricing

• Starts at $299/month for small teams
  
  

• Gold plan $499/month for medium sized teams

Ideal For

Small to medium-sized businesses looking for deep insights into customer behavior across multiple touchpoints, with a focus on tying product usage to marketing efforts and optimizing the customer journey.

6. Google Analytics

Google Analytics is one of the most popular and widely-used audience segmentation tools. It's a free platform that allows businesses to analyze a vast amount of customer data, primarily focused on website traffic and user behavior.

Key Features

1. User Segments: Analyze user characteristics and behavior across all sessions
   
   

2. Session Segments: Focus on individual session data
   
   

3. Event Segments: Drill down to specific user interactions or "events"
   
   

4. Technology-Based Segmentation: Segment users by their web and mobile technologies
   
   

5. Event-Based Cohorts: Assign events on the website and form cohorts based on accomplished events

Pros

• Extensive segmentation capabilities for website traffic data
  
  

• Backed by valuable Google data
  
  

• User-friendly interface with the User Explorer menu for easy segmentation
  
  

• Completely free to use
  
  

• Widely adopted, with extensive community support and resources

Cons

• Limited functionality for in-app event analytics
  
  

• Primarily focused on website data, may not be comprehensive for multi-channel businesses
  
  

• Learning curve can be steep for advanced segmentation features

Pricing

• Free

Ideal For

Businesses of all sizes looking for a robust, free tool to segment and analyze their website traffic and user behavior. Particularly useful for those new to customer segmentation who want to explore its benefits and uses before investing in paid solutions.

7. Heap

Heap is a robust product analytics platform that provides in-depth insights into customer behavior across all touchpoints within a product. It stands out for its automated data capture and retroactive analysis capabilities.

Key Features

1. Automated Data Capture: Autocapture feature tracks user actions without manual setup
   
   

2. User Segmentation: Segment users based on actions, behaviors, and properties
   
   

3. Cohort Analysis: Divide users into cohorts based on shared attributes and behaviors
   
   

4. Path Analysis: Session Replays, Heatmaps, and Journeys charts for comprehensive path analysis
   
   

5. Funnel Analysis: Define and track conversion funnels with custom events
   
   

6. Real-time Insights: Live data feed provides real-time view of all Heap events

Pros

• Automated data capture reduces setup time and technical requirements
  
  

• Retroactive analysis allows for flexible exploration of historical data
  
  

• Comprehensive analytics suite including heatmaps and session replays
  
  

• Supports both web and mobile applications
  
  

• Extensive integrations with over 100 platforms

Cons

• Steep learning curve due to the vast array of features
  
  

• High data storage requirements can lead to increased costs
  
  

• Lacks an engagement layer for acting on insights directly
  
  

• Limited segmentation criteria compared to some specialized tools

Pricing

• Pricing not provided. Typically, Heap offers custom pricing based on the scale of data and features required.

Ideal For

Medium to large businesses looking for a comprehensive product analytics platform with powerful automated data capture and segmentation capabilities. Particularly useful for teams wanting to perform in-depth cohort analysis and user journey optimization.

Conclusion

Choosing the right customer segmentation tool depends on your specific business needs, budget, and technical capabilities. Each of the tools we've reviewed offers unique strengths:

• Hyperaktiv delivers quick, actionable insights for small to medium SaaS businesses. It excels in providing tailored recommendations for each customer lifecycle stage
  
  

• Segment offers powerful data integration and real-time segmentation
  
  

• Userpilot specializes in product growth and user activation
  
  

• Baremetrics is ideal for subscription-based businesses
  
  

• Kissmetrics provides deep, person-based analytics
  
  

• Google Analytics offers robust, free website analytics
  
  

• Heap stands out with its automated data capture and retroactive analysis

Consider your primary segmentation needs, the size of your business, and your budget when making your choice. Remember, the best tool is the one that aligns with your specific business goals and helps you understand and serve your customers better.