Segmentation is a critical capability of the Adobe Experience Platform (AEP) that enables organizations to gain deeper insights into their customers and provide personalized experiences. Segmentation allows dividing customers into specific groups or segments based on common attributes, behaviors, demographic information, and other properties. These segments can then be targeted with customized messaging and offers through marketing and advertising channels.

Some key benefits of segmentation with AEP include:

• Deeper understanding of customer needs and preferences
• More personalized and relevant communications
• Improved conversion rates
• Better customer experiences
• Increased marketing ROI

Methods of Segmentation

There are two main methods of creating segments in AEP:

Rules-Based Segmentation

Rules-based segmentation relies on static rules defined by marketers to group customers. For example, a rule could specify criteria like:Copy

Age = 18-25 
AND 
Country = USA

to create a segment. Rules can use attributes, events, and other data to define segments.

Advantages of Rules-Based Segmentation

• Simple to implement and understand
• Complete control for marketers to define segments
• Fast way to create segments

Algorithmic Segmentation

Algorithmic segmentation uses machine learning to automatically create customer segments. Advanced AI and algorithms analyze customer data to identify common groups and patterns. This allows more nuanced and personalized segments to be defined based on predictive insights.

Benefits of Algorithmic Segmentation

• Automated process uncovers hidden insights
• Adaptable segments based on changing customer behavior
• Scales to process large volumes of data

Key Components of AEP Segmentation

AEP provides several tools and capabilities to enable both rules-based and algorithmic segmentation.

Segment Builder

The segment builder provides a visual interface for marketers to define, view, and manage segments. Demographic, behavioral, and other data can be used to set rules and criteria. Saved segments are stored and reused across campaigns.

Segment IQ

Segment IQ is an AI-powered recommendation engine for AEP. It analyzes customer data and patterns to provide intelligent recommendations for high-value segments that marketers may wish to target. This makes it faster and easier to identify segments.

Segment Matching

Once segments are defined, the segment matching capability matches customer profiles against the segments to determine which ones they belong to. As profile data updates, membership is recalculated to ensure accuracy.

Integration with Profiles and Identities

Segments leverage the rich customer profile and identity data within AEP. The profiles contain attributes, events, and behavioral history that can power segmentation logic. Identities stitch together data across channels and devices to create a unified view of each customer.

Data Governance and Privacy Considerations

While segmentation enables personalization, it must be handled carefully to avoid privacy issues or misuse of data. AEP provides data governance tools to ensure segmentation complies with regulations like GDPR and CCPA. Marketers can set policies to ensure transparency and control over customer data.

Conclusion

Segmentation within Adobe Experience Platform unlocks significant opportunities for marketers to understand customers and orchestrate personalized experiences across channels. Combining rules-based and algorithmic segmentation along with tools like Segment Builder and Segment IQ provides robust capabilities to gain actionable insights from customer data. Maintaining strong data governance and privacy controls remains an essential consideration as segmentation capabilities continue advancing. Overall AEP sets up a solid foundation for marketers to implement impactful segmentation strategies.