In an ideal world, marketers would have all the information necessary to fully understand each client in their roster. Customers would readily interact with all your marketing tactics and trust every recommendation from your business. Unfortunately, this is virtually impossible in the real world. 

It’s not a hopeless case, though. There’s a business solution to this dilemma: segmentation.

Segmentation is the strategic subdividing of your contacts into smaller groups based on various criteria like demographics, behaviour, and industry. Segmentation helps you zero in on leads and retain customers. It ensures that you implement a personalised approach tailored to the needs of your individual clients.

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Value proposition of list segmentation

A segmented list provides more value instantly. Without it, marketers end up treating every contact in a similar manner. Everyone receives the same newsletter, sales call, and product alert. This is the equivalent of splurging on a billboard or a door-to-door sales campaign. That is, you’re simply hoping for the best using a single one-size-fits-all strategy. 

Needless to say, this is not the best way to operate today. More importantly, this approach is actually costing you more than you think. Untargeted email programs raise expenses by almost 3.6 times compared to their targeted counterparts. Alternately, a segmented list provides a more specific approach, which means you get to initiate a more efficient and engaging conversation with your target clients. This cuts down on wasted effort and resources.

Here are some of the benefits of a segmented list:

  • You can send a personalised email blast to your leads and customers.
  • You can notify clients about relevant product offerings or other promotions.
  • You can tweak your re-engagement campaigns to come up with better results.
  • You can use the list to identify loyal clients and send them rewards or discounts.
  • You can send customised follow-up content based on people’s reaction to previous messages.

However, achieving a high-converting list can be a lot of work. Normally, this demands several instances of contact to encourage leads to move forward in the sales funnel. This includes efforts to come up with messages crafted to attract potential clients and campaigns created to raise their interest, culminating to the point where they properly engage and become  a marketing qualified leads (MQL). That’s not where it ends, though.

As if all this was not enough to exhaust any marketer, it’s worth mentioning that at this point, these leads have not made any purchase yet! You still need to push for a sale and impress them with incredible follow-up to retain their interest in your business. 

While it doesn’t necessarily guarantee a sale, understanding every person on your marketing list largely contributes to your success. Leads and clients truly appreciate it when marketers treat them like human beings instead of mere business opportunities. In fact, most customers share that personalisation plays a big role in their buyer’s journey. Hence, it’s critical to implement strategies that help you personalise every approach.

How CRM helps with list segmentation

Many smaller businesses veer from list segmentation as a business solution because it tends to be too time-consuming, not to mention complex. This is where a good Customer Relationship Management (CRM) software comes in. 

While a CRM system may not be as hip or cool as social media platforms like Facebook, Twitter, and Instagram, the “R” in CRM makes it the ideal tool for building relationships around your customers and potential clients—and this is one aspect that has been constantly underutilised by the users of this technology. 

Some even simply use CRM to manage their contact database. Although this application is completely acceptable, doing so means missing out on one of the major advantages it offers: CRM as a marketing automation tool.

The goal of list segmentation is to contribute to the overall marketing plan of your business. Segmenting for CRM means taking advantage of the knowledge you already have about the people on your contacts list. That way, you’ll be able to implement the appropriate strategy to entice them. 

For example, if your analytics show that the age range in your segments is people in their 20s to late 30s and those in their 50s to 70s, you know you have millennials and baby boomers in your contacts, respectively. Instead of sending them the same marketing materials, recalibrate your strategy and look at the best ways to reach out based on the demands of the particular generation. For millennials, sending a YouTube video might work better. Meanwhile, boomers might enjoy getting postcards biannually instead of receiving graphic-laden emails regularly. 

In using CRM for marketing, you can aggregate, structure, and analyse your customer data to come up with better ways to manage your relationships with your customers. Think of the software as your contacts list on steroids or the 21st-century version of the old-fashioned Rolodex. 

Once your CRM system collects and stores data on your potential and existing clients, you’ll be able to keep track of every touchpoint in the buyer’s journey. These details may come in the form of data gathered from submitted forms on your website or surveys, engagement rate with your marketing efforts, and even interactions with your customer support team. 

Think of it as your mini social networking platform with information on the people most relevant to the growth of your business. Instead of relying on the hodgepodge of data found in your contacts folder, this technology can empower you to segment your list and strategise more effectively. A CRM system can help you market smarter.

However, keep in mind that segmentation is not simply about coming up with distinct contacts lists either. Rather, it’s about coming up with ways to make the most of every list. A good CRM software can offer you almost an unlimited number of ways to bolster your marketing strategy. Here are the basic ways this technology can help your business in segmenting your list.

  • A good CRM software helps you learn more about and track the email behaviour of your recipients. It tells you who opens your messages and who ignores them.
  • A good CRM software lets you perform comprehensive demographic profiling. Details such as the age, gender, industry, and location of your contacts are readily available to you.
  • A good CRM software allows you to analyse and track how your recipients interact with your content as well as their preferences. Data on their preferred mode of contact and the nature of content they enjoy more can be used to eliminate wasted efforts.
  • A good CRM software helps you analyse the purchase behaviour of your clients. You’ll be able to identify who purchases from you, the items or services they availed, and the frequency of their purchases.

Final thoughts

Most marketers believe that “the money is in the list.” However, that is not necessarily accurate. The truth is, the money is generated from your good relationship with the people in your list. 

An excellent CRM software gives you the power to segment your contacts list in as many ways as possible. This translates to your ability to come up with unlimited ways to boost your marketing strategy. CRM segments also provide reliable data necessary for evaluating the success of your strategies.

To learn more about how CRM can help you define your marketing strategy, read our white paper CRM for Marketing or contact one of our team on: +44 118 3030 100 

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