How can you segment data in a CRM database for CSM?

1 Step 1: Define your goals

Before you start segmenting your data, you need to have a clear idea of what you want to achieve with your segmentation. For example, do you want to identify your most valuable customers, your most at-risk customers, your most engaged customers, or your most dissatisfied customers? Do you want to segment your customers by product, by industry, by location, or by stage of the customer journey? Do you want to segment your customers to offer them personalized service, to upsell or cross-sell them, to solicit feedback, or to reward them? Your goals will guide your choice of segmentation criteria and methods.

2 Step 2: Choose your segmentation criteria

The next step is to decide what criteria you will use to segment your data. There are many possible criteria, but they can be broadly categorized into four types: demographic, behavioral, psychographic, and attitudinal. Demographic criteria include factors such as age, gender, income, education, and occupation. Behavioral criteria include factors such as purchase history, usage frequency, service interactions, and loyalty status. Psychographic criteria include factors such as interests, values, personality, and lifestyle. Attitudinal criteria include factors such as satisfaction, loyalty, expectations, and feedback.

3 Step 3: Select your segmentation method

The third step is to choose how you will segment your data using the chosen criteria. There are two main methods: manual and automated. Manual segmentation involves creating and applying rules or filters to your data based on your criteria. For example, you can create a segment of customers who have spent more than $500 in the last year, or who have rated your service below 3 stars. Automated segmentation involves using algorithms or software tools to cluster your data based on your criteria. For example, you can use machine learning or artificial intelligence to segment your customers based on their behavior patterns or preferences.

4 Step 4: Analyze and apply your segments

The final step is to analyze and apply your segments to your CSM strategies. You need to evaluate the size, characteristics, and value of each segment, and compare them with other segments. You also need to monitor and update your segments regularly, as your data and customers may change over time. You can use your segments to design and deliver more relevant and effective service solutions, such as personalized messages, offers, recommendations, incentives, or support. You can also use your segments to measure and improve your CSM performance, such as retention, loyalty, satisfaction, or revenue.

Segmenting data in a CRM database for CSM is a powerful way to understand and serve your customers better. By following these four steps, you can create and use segments that match your goals, criteria, and methods. By doing so, you can enhance your customer relationships, increase your customer value, and grow your business.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?