What Is Customer Segmentation?
In a gist customer segmentation is a powerful strategy whereby you divide your customer base into individual groups that share similar characteristics which can be easily done once you are using any of the best sales CRM software for finding revenue growth.
Segmentation of the customers is important because when you try to use the one-size-fits-all approach in your marketing strategies, even the best strategy will come up with mixed results.
This happens because while some customers may like one campaign, others may not.
Therefore by executing a customer segmentation strategy once you buy the best sales CRM software, you can easily use the tool to divide your customer base into subgroups with similar attributes, after which you can tailor your marketing plans and create contents around those subgroups and personalize your marketing messages to better communicate with different groups of customers for rapid sales and business growth.
Now as CRM is a business growth technology that helps in streamlining this workflow and process so that you can reach the leads and customers who are most receptive to your offering(s), here is why combining easy to use CRM software with customer segmentation strategy benefits your brand:
1. Analyze Patterns and Trends
Business CRM software is a tool that collects customer data and stores them in one place for easy reference. Now, since CRM is an important tool for your customer service teams, this lead management software harvests customer data, such as a prospects purchasing behaviors, location, interest and hobbies, age group and more for your marketing staffs, after which the tool can also analyze patterns and trends in this data for providing accurate results needed for proper nurturing of the leads without any guesswork.
2. Determine the Lifetime Value of Your Customers
Once you buy the best sales CRM software and implement it effectively, the application helps the users to create predictive models that aids in determining profitable customer-base based on the CLV (Customer Lifetime Value) of the customers.
Using a sales CRM, the users of this business growth technology can help the users to ascertain which segment of their market has the highest CLV and thereafter send marketing materials that resonate with those customers.
Now, since CRM also helps in discovering customers with a low CLV you can use this tool and use the information found in the CRM database of those customers to find methods that can increase their lifetime value with your brand and company.
For example, Facebook allows its users to filter their posts based on age, gender, interest, relationship status, location and more.
Hence using CRM and integrating it with social media tools you can create posts that target the bulk of your low CLV customer-base and reach a cross-section of your demography instantly and even address a specific audience on LinkedIn and other social media websites.
3. Increase Sales
According to certain research conducted by leading global market research organizations, all in one CRM is a software that boosts sales by 30 percent.
Hence, combining easy to use CRM software platforms with customer segmentation strategy can generate even more successful results.
This is because, using this approach you can easily get to the right customer with the right message at the right time, a thing that you just cannot do with generic “one-size-fits-all” marketing strategies.
For example, once you buy the best sales CRM software you can easily target your customers with suggestions on products and services based on their previous purchase histories.
In fact, one of the biggest brands across the globe relies on marketing CRM software solutions to sift through a plethora of customer data, something that marketers are unable to do manually, or by using spreadsheets, for up-selling and cross-selling their offerings.
4. Increase Engagement
For the most part, engaged customers are always more profitable customers for any business. According to research more than 86 percent of buyers will pay for a better CX (Customer Experience), while customers who are totally engaged represent on an average 23 percent of all premium customers for any brand when it comes to profitability, revenue and growth of relationship when compared to average buyers in the marketplace.
Therefore using easy to use CRM as a business growth technology solution for segmenting customers will not only help you to separate your buyer’s based on demography but also find out other common characteristics as per their sales cadence and collective characteristics so that you can engage your customers on a deeper personal level.
CRM is a tool that not only provides you with useful insights into your customer’s attitude and behaviors by tracking interactions and collecting sales data, but it can also send powerful marketing material to smaller groups in the CRM database who share similar traits and comparable sales cadence, resulting in increased customer lifetime value and higher rates of engagements.