A strong CRM (customer relationship management) system is an integral part of any successful business and can help with managing customer interactions, handling the consumer lifecycle, improving relationships, increasing retention and driving greater revenues. A significant aspect of any good CRM system is its ability to segment customer data automatically. Customer segmentation refers to the categorization of your customer base into groups based on similarities for marketing purposes. Some customer segmentations that might be relevant to your business include: age, gender, spending habits, place of employment and so on. The benefit of understanding your customer segments is the significant marketing potential that successful segmentations can provide. If you wanted to increase the success of an event, you could send a campaign to all the customers that historically take part in similar events.
CRM software helps alleviate the headaches of tracking so much data about each customer, by automating much of the collection and categorization. The data collected by your CRM can also help with understanding your customer’s preferences and needs allowing you the tailor their experience accordingly.
The Challenge of Getting Your CRM Up and Running
So you’ve started using CRM software to track customer segments? Now you need to successfully manage the software to maximize its value. Only a well-planned and designed system can help your business grow. Segmenting customer data will be worthless if you haven’t built a great foundation - you must sit with your team and determine what data points are must-have and ensure that your software can successfully manage those needs.
Another challenge with segmentations is ensuring clean data entry. While a great CRM will automate much of the data entry – if your team doesn’t understand the importance of data collection they will enter junk data to save time. Sitting with your team during the initial stages will help build a company culture that understands how integral data capture is to your success. Most providers fail to provide sufficient implementation resources to ensure your staff understand how important data capture is.