customer segmentation CRM

How a customer segmentation software helps you grow your business

It’s a basic principle of any business that something made for everyone will inevitably fail at completely fulfilling anyone’s need. The presently congested industry forms a perfect proof for this hypothesis.

In the marketplace, there are fewer and fewer products which universally cater to every taste – like I-phone or Big Mac.

You can’t imagine fewer products or packages that could be termed as universal darlings.

If you are not incisive and targeted, it’s hard to achieve any headway in a competitive and saturated marketplace. You need to retain your strategic focus for achieving the right audience penetration.

There is only one way to achieve this accurate audience understanding.

Try For Free


CRM-based Customer Segmentation

This involves collecting and managing all your customer data through an integrated CRM platform. The CRM platform automates the collection of all customer data and parameters on a single platform.

Further, you can use this customer data to filter and derive meaningful assumptions about your customer groups.

Well, let’s look deep into this.

Why you Need a CRM to manage Customer Segmentation

As expressed earlier, the role of customer segmentation is to effectively reach and engage a specific audience segment.

The goal of customer segmentation is to understand your users. An effective customer segmentation strategy involves utilizing the right parameter or attribute to segment your user base.

For this, you need to select the right customer segment or slice of the overall audience. Otherwise, even a small business with meager audience numbers could end-up choosing the wrong audience attributes leading to wrong consumer understanding.

Without direction to obtain right parameter, you could get stuck at umpteen number of permutations to segment your audience in a congested marketplace.

If you are provided with numerous options with no clear directive, people are most likely to end up making mistakes. You may even segment your audience simply based on irrelevant audience parameters that may simply lend you the feeling of being smart or market-ish without actually achieving anything.

A situation similar to this is caught to perfection by this evergreen Dilbert Cartoon.

But as Scott Adams captures through the graphics, it’s set to fail you.

If the right customer segmentation is be the key to understanding your users, biasing your decisions on incomplete data will simply lead to the skewed point of view about your customer.

For this, you need an efficient system of managing and segmenting your audience groups.

The CRM-based customer segmentation model is ideal to bring about realistic and positive segmentation of your audience.

How to Segment your Audience Groups

In-order to zero-in on the right customer groups, you need to filter the right customer attributes. This needs you to possess a successful customer segmentation.

The act of CRM-based customer segmentation could be broadly described as given below.

  1. First consolidate all audience and customer groups.
  2. Recognize the most critical attribute among entire audience circles
  3. Filter the successful audience group
  4. Look for similar attributes among the independent audiences

This involves creating an initial customer model and then strategizing better ways to sell to that audience.

Creating an Initial Customer Model

For expanding your customer base, you will need to create a customer model based on already acquired customers. This will involve the ideal parameters such as age, lead acquisition channel, marketing campaign, etc.
This lets you create an ideal segment to reach and communicate your customer message. You can also get through the many permutations of your customer messages to reach the optimal conversational message.

Segment your Marketing Channels

In a highly fragmented marketplace, you cannot get visibility just through the muscle power of your marketing budget. In-order to attract maximum attention, you need to receive maximum visibility through different marketing channels and platforms.

The easiest way to achieve audience penetration is through marketing to a look-alike audience. This audience resembles your present day consumers. The look-alike would find your product useful, but aren’t acutely aware of their requirement.

For this, you need to first segment your existing audience group. Afterwards, you can receive specific characteristics of your audience members. This involves age, orientation, marketing preferences, prospect requirement, etc.

This helps you build a productive marketing strategy that helps you leverage maximum benefit from your existing customer groups.

Further, you can create a marketing strategy that helps you to appeal and acquire look-alike prospects. This can help you increase audience penetration without even increasing your marketing budget.

Segment your Sales Efforts

According to market studies, 30% of the total revenue can be attributed to various up selling and cross selling efforts. For this, you need to make sure that you are providing personalized options to your consumers.

By following CRM customer segmentation modeling, you can readily recognize each part of your audience segment. This readily recognizes your right customer segment.

This allows you to significantly drive-up your rate of revenue acquisition.


In the present day of confusion, you cannot handle your customers or leads in a come-and-go basis. You need to take a concise strategy that will address your precise audience demand.

This requires you to have a system of automated customer segmentation and filtering like CRM.


Leave a Comment


Can't read this? click here to refresh.