Customer segmentation is designed to focus more on those customers that are most profitable for your business or have the greatest growth potential. To this end, all those customers are combined into a segment that have the same or sufficiently similar characteristics that are considered relevant. This is absolutely essential in order to make optimum use of your company’s resources in marketing and sales and, if necessary, to gear product development to specific customer segments.
But there is one thing you should definitely bear in mind: A meaningful and reliable segmentation can only succeed if you also have a sufficient data basis.
How to segment customers
The best way to segment your customers involves two essential steps.
- The first thing you do is to decide whether your customers are very profitable for you or not at all. Of course, customers who fall into the second category do not necessarily have to be rejected. Filter among them by those with adequate growth potential. Or try to generate future profits from an innovation in product development or pricing.
- In the second step, you further subdivide the group of profitable customers. The aim should be to bring together customers with similar needs. So that you can then address them in sales and marketing with targeted messages or tailor your products even more strongly to them.
No success without data
To ensure that your customer segmentation is not arbitrary, but that sufficient conclusions can actually be drawn from your classification, it depends on both the quantity and quality of your data.
Basically, customer segmentation is a statistical procedure. And this is all the more meaningful the larger the samples are. Segmentation only makes sense from a sufficiently large customer base. In order to be able to derive certain rules from the similarities and differences of your customers and to largely exclude the factor of chance. The smaller your customer file and the less data you have on your customers, the coarser and less precise your segmentation will be. And the more error-prone it becomes.
So that you can actually work in practice with the properties you use for your segmentation, the available data must actually be measurable. You will find some more detailed impulses for this in our article on the quantifiability of data in the creation of target customer profiles – a very related topic.
Once you have defined your segments and assigned your customers to them, it is advisable to confirm these results by means of a random user survey. Or to uncover and eliminate weaknesses of your customer segmentation in this way.
Generating and using data
With Implisense Pro, you can expand the database to your customers at the touch of a button to receive hundreds of additional data points for each of them at a stroke. In this way you gain many additional starting points to generate similarities and differences. The software can also help you here – and even more: Enter the companies you have combined into a customer segment at Implisense, and the algorithm automatically finds numerous other companies that resemble this group. Extreme power for your new customer acquisition.
Tailor your sales and marketing activities as well as your product even more specifically to the customers that enable you to make the most profit and achieve the greatest growth! With the help of a truly meaningful customer segmentation on a solid data basis.