What are the Benefits of Customer Segmentation
Customer segmentation allows your business to focus its resources on targeting a specific audience. The people that engage with your brand are likely to have different interests and needs. By segmenting your audience with Zoho Campaigns, your company can save money and time. Target the right audience with the right content to boost engagement and customer loyalty. Let’s learn about customer segmentation and the benefits it can offer to your organization!
What is customer segmentation?
Customer segmentation is dividing your market audience into groups based on shared characteristics. The characteristics can be anything from demographic and location to interests and lifestyle. Targeting a segmented audience helps manage your resources most effectively. Target specific customers with relevant campaigns to optimize your marketing spend. Creating groups of customers with specific traits allows you to focus campaigns on the most compatible targets.
What is the difference between a segment and a market?
Customer segments and markets are not interchangeable terms. A market is the group of people to whom your company is selling products or services. By contrast, customer segments are groups within your market. Customer segments are defined by shared characteristics chosen by your business. Zoho CRM campaigns can target your entire market, or one or more customer segments.
What are the benefits of customer segmentation?
Zoho Campaigns helps your business optimize its marketing and advertising budget by focusing on the right audience. Segmenting customers with your CRM marketing automation offers more benefits than saving money! Let’s look at the advantages customer segmentation can offer to your entire marketing strategy.
Identify market opportunities – With lead scoring and marketing automation, unlock new insights into market opportunities. Studying each segment separately can determine which areas need improvement.
Adjust marketing campaigns – Create separate Zoho Campaigns for the needs of your various customer segments. Rather than pushing one Zoho CRM campaign to all users, engage with specific segments on a more personal level.
Marketing development – Get a thorough understanding of the response characteristics of your audience. With specific customer segments, you can tailor your budget and strategies for the audience you are targeting.
Product design – Get invaluable insight into the desires of your target audience to create products that fulfill their needs. Your CRM with email marketing can then promote the right products to the right people, thanks to customer segmentation.
Media selection – Introduce business intelligence into your advertising budget. Implement content based on actual data with Zoho CRM campaigns.
Improve resource allocation – Use your marketing resources more efficiently with customer segmentation. Transform your CRM marketing automation by timing and placing your marketing efforts to produce the biggest impact.
Boost customer satisfaction – Segmenting your customers allows you to be attuned to the needs of smaller groups. Focusing attention on more specific customer groups improves customer satisfaction and retention.
Adjust pricing as needed – Between your customer segments, price perception plays a huge role. If you need to enact different pricing strategies for your markets, predetermined customer segments make it easy. Adjust your product promotions to extend the proper offers to the right target audiences.
Optimize distribution – Place your products in front of the people who are eager to buy them with customer segmentation. Establish different distribution mixes for your various segments to extend the broadest reach. Customer segmentation helps your company distribute product intelligently to yield higher ROI.
How to segment your audience
Now that you understand the value of customer segmentation, how can your company begin? Zoho Campaigns makes it simple for users to divide their audience into specific segments based on shared characteristics. Let’s learn how to effectively segment your audience!
- Identify your audience
The first step is to consider your audience as a whole. Are you targeting B2B customers, or are you in a B2C industry? Think about the potential audiences that you engage with most often. For many, choosing how to segment their audience is the most difficult task! With the help of your CRM with marketing automation, dividing your audience doesn’t need to be challenging. Take a look into the data surrounding your customer base for ideas that expand beyond age, gender, and location.
- Determine which segments are suitable
Check if your customer segments are viable for your purposes. Ask yourself the following questions to see if your characteristics meet the basis for customer segmentation.
- Does the segmented audience share the same needs from my company?
- Are the segmented groups different enough from one another?
- Does each segmented group contain enough people?
- Are the segmented groups simple to engage with?
Now that you have a firm idea of your audience, you’ll decide how to further split each segment. Determine the major characteristics of each group, along with the types of content they prefer. Knowing what content each segment is likely to engage with helps you leverage your resources wisely.
- Understand your audiences
After you establish your customer segments, market research can help you effectively learn about them. With CRM email marketing, it’s simple to conduct surveys and polls to get to know the needs and behaviors of your segments. The more input you get from your audience, the better you can relate to them in your marketing materials.
- Test campaign strategies
Ensure that your customer segments are useful for the needs of your business. If your current segments don’t reflect your core audience, you can tweak and refine them until they’re successful. After you lay the framework for your customer segments, testing will reveal whether they are effective. Make sure to allow enough time to determine the success or failure of a strategy. If your outcome isn’t encouraging, reconsider your approach. Market research and data analysis can unearth new ways of dividing your audience.
Call Enable to see customer segmentation in action!
Get a close and personal look at the power of customer segmentation today with Enable. Our expert Zoho consultants will demonstrate the capabilities of Zoho Campaigns. You’ll gain a deeper understanding of how Zoho CRM can help you hone in on specific customer targets. Call the Enable team today to schedule a complimentary introduction call!
Q. What is CRM customer segmentation?
A. Customer segmentation is when you put your customer base into different categories like demographics, purchase history, or other similar groups that are relevant to your business.
Q. What are the benefits of segmentation?
A. Segmentation allows you to organize your customer base depending on how they interact with your business. For example, it gives you a medium to take cues from their buying routine and organize them into different groups like not interested, visiting customers, interested buyers, high spending, and occasional buyers.
Once you understand which category your customers belong to, you can personalize marketing approaches and selling experience resulting in higher customer satisfaction and conversion.
Q. Can the segmentation scores be mapped with the Zoho Campaign fields?
A. Yes, the segmentation scores and labels can be mapped with the fields in Zoho Campaigns.
