Often the best place to start when considering segmentation is within your own database. Extrapolating the data within cannot only point you towards current successful processes and strategies but also highlights the ways that data is being leveraged in your company at present.

In order to segment your database, certain data points need to be captured and associated with individual contacts and there are a wide number of ways in which you might segment your current audience.

Ideal Customer Profile (ICP)

Typically, when organisations think about their “ideal customer”, it will be the ones that represent the largest profit margin, the shortest buying cycle, or those which require the least amount of support. An ICP can help to identify common characteristics amongst your customer base, but you should be careful in how this is used.

Let us say for example that you uncover that your highest paying customers are all 40+, is it their age that is attracting them to your brand or is it that you are spending more money on a channel which is likely to have an audience of this demographic? It is also important to consider the size of your ICP when compared to the rest of your database. It is not uncommon for most organisations to have an 80:20 split where 80% of their profit will come from 20% of their customer base. There is always an inherent danger in chasing ideal clients which will typically take more time and resources, and in the meantime may alienate the bulk of your audience. STRAT7 Bonamy Finch would advise that applying ICP to your current database is not necessarily the most useful way in which to segment your CRM, but identifying these clients is key in retention schemes.

Source Channel, Content or Campaign

Another way in which you might consider segmenting your CRM is from which source they came in from, and which content/campaign brought them there. It is becoming easier to attribute actions to understand whether a customer came from organic search, referral, paid adverts etc. While technologies like HubSpot, SharpSpring and Leadforensics can help track website and social activity, they are far from flawless and this only gives you the online picture.

In today’s cross-channel and multi-layered sales funnel, it has become increasingly difficult to quantify buying behaviour. Whilst understanding what has worked before can help shape future activity and budget, these actions still take place within a silo of your own channels and don’t help you to understand what brought that consumer into the category in the first place.

Needs, Interests and Hobbies

While many organisations have long held data of how customers interact with their brand, they have not been able to contextualise this with external data about how that customer may interact with other brands (outside of market research) thanks to advances in technology, it is now easier to merge third party data, which enables a fuller picture of your customers. Understanding their likes, interests and hobbies may enable you to think of additional channels/placements which may not be immediately obvious. Social media data has enabled this on a large scale, but many would criticise the level of data available. This is why you may still want to use qualitive research for better context.

Buying Personas

Where an ICP focuses on an ideal customer, buying personas are representations of groups of customers. They are based on market research and encompass multiple forms of segmentation including demographics, behaviour patterns, motivations, and goals. In order to create detailed buying personas which can enact practical change, STRAT7 Bonamy Finch combine customer data, survey data and third-party marketing data to create a single view of the consumer that results in the right business decisions being taken to both acquire and retain customers.

If you are looking to segment your CRM, then look no further. Bonamy Finch are the experts on segmentation. With over 1500 successful projects we combine insight from multiple sources and techniques. Multi-national organisations turn to us for their challenging projects, to find out why you should to: sign up for our next event or get in touch

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