User Review( votes)
If you still believe in the philosophy of one size fits all, you are probably an old school. It doesn’t work like that anymore. It’s imperative to understand that every person has different likes, dislikes, and wants. The same principle holds true in the business world. Every customer is different from the other and so are their requirements. This is why Customer segmentation, both as a concept and practice, is on the rise. It helps businesses create subgroups, each of which contains customers with similar attributes. This helps craft effective marketing strategies for a particular customer segment and reach out to them in a better way.
And how is this done?
It is done with the help of CRM software. An effective CRM software will help you collect data in a fast and efficient manner from varied sources such as websites, retail purchases, email, and social media to name a few. Once the data is collected, it converts it into an easy-to-understand format so that it is easily accessible to your team. Also, it prepares duplicate copies in multiple formats that can be worked upon in other software as well. A plus point of a CRM software is that it automatically puts new customers in existing or new segments as and when your customer database increases. This allows niche marketing that helps you sell products and services to a specialized segment of the market. In short, CRM software makes you an all-rounder by allowing you to target different market segments efficiently and creatively.
Here’s how a business can benefit from customer segmentation
Customer segmentation provides businesses with a wide array of benefits such as:
1. Increase in ROI
It’s of utmost importance for businesses to compare the amount spent on marketing initiatives versus their output. If the number of sales and the number of actionable leads generated are less than expected, it will have a huge impact on your ROI. Studies show that 77% of ROI comes from segmented and targeted campaigns. CRM software helps you point out the most profitable market segments so that you can dedicate more resources to it and increase your ROI.
2. Increase user engagement in marketing campaigns
There are multiple platforms where you can interact with your customers be it over an email, website form, social media post, Chabot interaction, or over a call. Businesses need to understand that customers prefer one communication channel over another. Some like reading short and crisp social media messages while others prefer to go through formal emails. This is where CRM software can help you. It segments customers based on their level of engagement providing a clear picture of which communication channels are preferred by which customer segments. This helps in crafting better communication strategies, increase customer outreach, and decrease customer turnover in the long run.
Also Read: Customer Segmentation in CRM
3. Upsell and Cross-Sell opportunities
Selling more to existing customers is better than selling less to new customers. The companies that follow this mantra are clocking huge profits and the CRM platform is helping them do just this. Its unparalleled ability to form personalized profiles of customers tracks their interests, purchase history, and purchase behavior which in turn helps to estimate what products they are looking for, and predict what they may buy in the future. This opens a new horizon for up-selling and cross-sell opportunities.
4. Better communication with customers
Have you launched a new product? Are you coming out with a new service? Are you looking for a better way to share the news with your customers? Keep in mind that it takes less time to delete an unnecessary message than it takes to blink an eye. Also, sending the same message to every customer can significantly lower the purchase potential of your products. So what can you do? CRM is the solution. It allows you to craft customer-centric messages. Instead of sending a one-shoe-fits-all email, it lets you send targeted messages that appeal to a particular segment. This builds a personal rapport with your customers and they respond to your messages effectively.
How can Sage help you meet your CRM needs?
Sage is a world-leading organization that provides first-grade CRM services. Whether you are a business who has just started out or you are an industry leader, Sage CRM provides you a complete array of solutions. We excel in providing tailor-made solutions to address your specific challenges. Contact us today to know how we can help your business in building long-lasting and profitable customer relationships.
Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.
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