Which portions of your customer base have the lowest cost of acquisition and retention? Which of your customers are most likely to become evangelists and generate new business on your behalf?
The insights gained from customer segmentation can answer all those questions and ensure you’re acquiring the best-fit customers for your company.
What is Customer Segmentation?
Customer segmentation is a way to group similar customers together in order to do reporting and analysis on the health of your database.
You can segment your customer base by their industry, product tier rcs database or usage level, revenue, employee size, geographical locations, date they became a customer, channel their contact originated from, buyer persona and ideal customer profile. Grouping by these data points can help you identify your ideal customer profiles and determine which types of prospects you should avoid selling to.
The Benefits of Customer Segmentation
Segmenting your customer base and analyzing the performance of those groupings can improve your marketing, sales and customer service efforts.
Refine messaging
Customer segmentation enables you to identify patterns in the way you’ve acquired customers and the way different segments have engaged with your company. This allows you to gain a better understanding of what resonates with different types of prospects during the marketing and sales process and what kinds of communications they prefer to receive during service delivery.
Focus on acquiring the right customers
Understanding the characteristics of your most successful customers can help you better target your customer acquisition efforts.
Knowing who your company best serves can inform your marketing strategy so you work toward only attracting good-fit leads. On the sales side, the insights gained from customer segmentation can prevent you from investing resources in pursuing poor-fit leads.
Download the Essential Guide to Demand Generation
Produce healthier customers
Because you’re optimizing your acquisition strategies around attracting and nurturing the best-fit prospects, the customers you close should be happier and stay with your company longer.
Improve your product or service
The feedback you receive from different segments will give you insight into how your offering is helping your customers. This can help you determine how to position your solution to prospects and uncover needs that you can solve for with new products or services in the future.
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