How Segmentation Can Help Optimize Your CRM

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Having a customer relationship management (CRM) tool is an essential part of succeeding as a small business. When used correctly, CRM is an invaluable tool. It helps to follow a set of best practices so you can get the most out of your CRM and use it the right way. 

One of those best practices is using segmentation. In this post, we'll define segmentation and take a look at how its use can help you optimize your business's production and efficiency. 

What is Segmentation? 

In the context of CRM, segmentation is dividing your entire database of contacts into lists based on categories you define. Your contact list can include multiple groups, including (but not limited to) customers, vendors, contractors, suppliers, and leads for future business. 

The categories by which your list is divided is defined by you. These can include: 

  • Type of contact (customer, vendor, lead, etc.)
  • Location
  • Market or industry
  • Company

However you segment your list, you should do so in a way that maximizes convenience (and, in turn, profitability) for you and your organization. 

How It Can Help? 

Now that we've explained the concept of segmentation, it's time to review why it's helpful. 

Keep Your Contacts Better Organized

Imagine you get a tip on a can't-miss business prospect. You input the lead's information into your CRM. You reach out and are told to call back next week. By the time next week rolls around, you're now scrambling to find the lead's phone number or email in your sea of contacts. You need to comb through your CRM to do so.

With an unorganized, unsegmented list, you may have trouble accessing your contacts when you need to access them the most. Having your contacts broken down in easy-to-remember categories makes your list well-organized. The CRM will do most of the maintenance and sorting of the lists for you once you enter the information. You won't have to build complicated spreadsheets to arrange the information once you define the categories you want to include. 

Outreach is Easier

Whatever reason you have for wanting to get in touch with one of your contacts, segmenting your list makes the process easier. When paired with marketing automation, you'll be able to lead coordinated outreach campaigns to targeted groups of individuals. 

You can even break down your existing categories into even more refined subcategories. You set the level of granularity based on your business needs. 

Comprehensive Customer Profiles Help with Future Sales

Building out your segmented list allows you to maintain customer profiles for future sales campaigns. Customer profiles contain whatever type of customer information you think may assist with future sales. 

You may want to follow up with your current customers. You may have a product that will compliment your previous offer. With segmentation, you can increase retention by grouping all past customers in one area. You may also want to reach out to prospective customers you've identified as promising leads. Segmentation allows you to do this as well. 

Building a profile lets you customize offers based on past customer habits, activities, or identifying information. It helps you strengthen your sales pitch before you even reach out with your promotional campaign, another area in which segmentation can assist. 

Tailored Promotional Campaigns

Building and executing successful promotional campaigns is much easier with the use of segmentation. For example, you may want to send an email blast notifying all your customers about a pending product launch. Segmentation allows you to do this with a few clicks. You're also able to send emails to multiple groups, tailoring the message depending on the group you'd like to reach out to. 

Segmentation is an important organizational capability of any CRM. It's yet another way in which a CRM can help you take your business's efficiency and effectiveness to the next level.  

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