Using Customer Segmentation to Get the Most out of your CRM

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We have all heard the phrase: Customer is king. Your customers are your most important asset and your products and services are made for them. This blog will cover how you can get the most out of your CRM using customer segmentation.

The one size fits all marketing approach doesn’t work anymore. Every prospect wants to be talked to directly, and the process of customer segmentation can help you boost conversions and effectively reach your audience members.

The key to creating and maintaining solid relationships with the different customer groups within your business is understanding their unique needs and preferred communication styles. This will help you efficiently and effectively meet (and hopefully exceed) their expectations.

What is Customer Segmentation?

Customer segmentation is identifying and organising your customer groups using specific variables and characteristics they have in common. These variables could be demographics, personality traits, geographics, or even their income. Segmentation provides in-depth customer data that helps your business tailor your products and services to your customers’ needs. This personalisation gives you a competitive advantage and a better chance at customer conversion and brand loyalty.

Types of segmentation:

Although the following doesn’t cover every type of customer segmentation, it provides a starting point.

Type: How to segment your customers:
 

Demographic Segmentation

 

Gender, age, income, education and marital status.

 

Geographical Segmentation

 

Country, county, city, town

 

Psychographic Segmentation

 

Personality, attitude, values and interests.

 

Technographic Segmentation

 

Mobile-use, desktop-use, apps, and software.

 

Behavioural Segmentation

 

Tendencies and frequent actions, feature or product use, and habits.

 

Needs-Based Segmentation

 

Product/ service must-haves and needs of specific customer groups.

 

Value-Based Segmentation

 

Economic value of specific customer groups on the business.

 

Deliver personalised experiences with customer segmentation.

One of the most crucial aspects of marketing is to ensure your customers remember you. Learning about your customers on a deeper level can help you tailor your content to their unique needs and challenges. You can then deliver personalised campaigns and the chances of remembering your brand increase significantly. Being heard and seen are potent factors that ensure retention, and customer segmentation is one of the most effective and efficient ways to maximise your ROI from marketing campaigns.

Customer segmentation aims to tailor your products and services to meet your customers’ needs. This personalised experience will help build long-lasting relationships with your customers and increase your company’s goodwill.

Increase your visibility

Segmenting your customers enables you to connect and engage with them directly. Knowing where to find your customers, you can create different strategies to reach them. This will establish increased visibility for your business and a personal connection with your customers as well.

Beat your competitors

By listening to your customers and coming up with different variations or new products and services you can deliver more than your competitors. With the personalisation you offer, your customers will remember you better and will convert faster. Improving your customer service and support efforts by understanding and preparing for challenges, different groups are likely to experience, we help you stand out from the rest.

Drive your sales

When your marketing messages are targeted to customers wants and needs, they are far more effective. They can help drive purchases and impulse buys and lead to higher customer satisfaction. A report by Econsultancy shows that when someone has a more personalised shopping experience:

  • 49% purchased a product that they did not initially intend to buy
  • 44% will be likely to become a repeat buyer
  • 32% will be likely to leave a positive review

Bring old customers back

Customer segmentation is all about staying relevant to your consumer groups and it is important to continue meeting the needs of your customers in order for them to stay loyal. You are able to look at trends and if they are changing etc/ find out why and meet their needs.

Conclusion

Customer segmentation ensures a customer-centric approach and helps you serve each customer better. It enables you to boost conversions, reach your audience through cross-team efforts, and communicate more effectively with customers to meet their specific needs, which helps build everlasting customer relationships.

Begin working on your customer segmentation strategy and get started with ViewPoint CRM by talking with our team today.

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