Alexa Market Segmentation Process And Its Role On A CRM Tool

The Market Segmentation Process And Its Role On A CRM Tool

Marketing | by Patricia Jones
market segmentation process

Once you are creating a market segmentation process let us tell you that segmenting the market works wonders if you are capable of targeting the right customers.

Because CRM software greatly improves data accessibility, sales reps at companies using a CRM can shorten their sales cycles by 8-14% - Nucleus Research Click To Tweet

In fact, so much so that if you can send specifically targeted email campaigns, you can easily see more than 100 percent higher click through rates comp to non-segmented email campaigns, and so you essentially double your chances using the market segmentation process in your easy to use CRM software.

Now it is not only advantageous for your business to tailor your campaigns, but in the present time customers also prefer personalized communications from brands and businesses.

If you know what is CRM tool, you must also be aware that it is a software platform that houses a plethora of useful information with respect to your customer’s preferences, demographics, and the purchasing habits of your consumers that can be used to fragment your marketplace.

Hence any business CRM irrespective of whether it is an enterprise-level software or a Salesforce Alternative CRM most CRM offers segmentation and features like campaign management for targeting the best demography for business growth.

In other words, a market segment is a number of consumers that are grouped together by the marketers, which can be segmented using a cutting-edge business growth technology solution like a CRM tool, according to several criteria which can include the consumer’s needs, their purchasing habits, age, lifestyle, preference, interests and more.

Therefore as one of the most cherished vendors of cutting-edge CRM for small and medium business and startups here are the roles of market segmentation on CRM:

Redefining Market Segments

The marketing segments must be big enough to meet the financial needs of the company and the offering(s). Segments may be chosen based on demographics, the generation of the consumer, or geological location. For sales CRM, the segment must also be reachable by promotional means.
In most cases, business marketers have already selected and grouped the products market segments before the implementation of the CRM. Hence, part of the market segmentation process is a secondary form of market segmentation, with existing customers further segmented so that post-purchase promotions may be personalized accordingly.

Targeting Market Segments

Using the market segmentation process, marketers study the typical characteristics of the segment members to determine potential product features and to figure out how to reach the segment members. Different segments may be more prone to specific media types, such as emails, e-magazines, web pages, even television or radio. Marketers target market segment members by tailoring products and commercials to suit the needs and tastes of the segment members and then displaying the advertisements on the market segment’s preferred media channels for finding better outcomes.

Managing CRM Database

Easy to use CRM goes farther than initial segmentation and target marketing because the marketer has more information on the segment’s characteristics.
This extra knowledge comes from a consumer database full of information on customer preferences and purchasing habits. This information is collected as part of a company’s consumer transactions and sales activities. Some companies administer customer surveys and store the results in their databases. Other companies nowadays have membership cards that record every customer purchase.

Promote to Market Segments

CRM marketers take the information in the databases and create promotions designed to meet specific customer wants and needs. This further segmentation helps retain customers, and customer retention is vital to business profitability. Typical CRM promotions include customer loyalty programs, personalized action between customer service personnel and the customer, and the ability to customize the product to suit the exact needs of the customer.


Hence in a nutshell market segmentation process not only provides you with useful insights into customer behavior and attitudes by tracking interactions, collecting sales data, and analyzing trends among specific segments. You can send powerful marketing material to smaller groups who share similar traits, resulting in increased Customer Lifetime Value (CLV), stronger sales and higher engagement rates.

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