CRM Segmentation By Demographics
Marketing and sales material need to address one primary customer need to be successful - WIFM- What’s In-it For me. This is the question every customer asks. Marketing professionals are not new to the benefits and science of customer segmentation. Segmentation in the science of customer relations helps organizations offer products or services in line with the customer’s core needs and wants.
Sample ExtractionA small portion of existing customer data is extracted and used for research and analysis purposes. The sample customer data extracted are de-identified for privacy as well as bias considerations before the next steps in the process of customer segmentation are executed.
Define customer ObjectivesBefore analyzing the extracted sample, a set of client objectives have to be identified. Client objectives answer a primary question, ‘what are the behavioral traits of an ideal customer given a demographic segment and product combination?’ A set of client objectives directs meaningful quantitative and qualitative analysis. The results of such analysis, generate meaningful data that helps in customer segmentation-a group of customers exhibiting similar behavior that can benefit from some or all of a product’s or services’ features. Sales and marketing activities relevant to each segment can be designed and fulfilled for desired results, which are, increased sales and profits.
In addition to defining client objectives, relevant market research data needs to be integrated as additional information that will help in creation of meaningful customer segments. Such documents throw light on consumer behavior through previous professional and independent research, thereby providing more useful information on customer behavior.
Favorable traitsDepending on the type of favorable behavioral traits customers exhibit congenial to defined customer objectives, different segments are created. For each segment an appealing marketing and sales strategy is evolved. For example the same tablet computer could be marketed differently to college undergrads and business executives given each customer segment’s unique behavior pattern.
Information from Samples-Live SegmentationThe remaining data in the organization’s customer database is analyzed as the sample was and customers from the database are added to the segment which their personal and behavioral data indicate as closest fit.
Customer segmentation in CRM helps focus marketing budgets and efforts for maximum returns by customizing marketing strategy for each customer segment. The WIFM appeal is maximized through effective customer segmentation.