When your customers purchase a product or receive a service from you, do you interact with them the same way every time? Of course, it is not a good idea to have the same kind of interaction throughout your customer’s journey. The way you interact should change as per the changing interests of your customers.
The point is that people have similar needs in different facets of their lives. Hence, it’s important to segment your customers based on similar characteristics, behavior, and needs while using online Sales CRM software. This is where Zoho CRM can help businesses as it offers a segmentation feature to create such groups to ensure personalized interactions. With this feature, it becomes very simple to identify who is likely to be interested in specific types of products and services so that you can connect strategically while leaving a powerful impact.
In this article, we have illustrated the benefits of segmenting your customers and “upselling” them based on their specific needs. So, let’s get started.
Zoho CRM Segmentation Feature: A Strategic Tool
Why do small and medium-sized companies need to bother with segmentation at all? The answer is: because it is one of the best investments you can make in your business. If you are using Zoho CRM, take the time to set up segments that reflect where your customers are in their journey, so you can be sure you’re targeting them with content they care about.
Below are the prime reasons why your business should use the Zoho CRM segmentation feature.
Personalized Marketing Strategies
Small businesses may not have the resources for a dedicated marketing team. Therefore, it’s important to segment your customers to provide a better customer experience and determine their needs. For example, you can target your existing customers by segmenting them based on their interests, location, or shopping behavior. This helps you to create relevant offers and communication that is impactful.
Optimized Customer Journey
The segmentation feature of Zoho CRM provides customer insights and helps businesses understand what might motivate each customer group to convert. When you comprehend your customers better, you can optimize their journey better.
With insights from Zoho CRM’s segmentation feature, businesses can meet the needs of their customers more easily and ensure customer journey continuity.
Customized Customer Experience
According to research from New Epsilon, it has been found that 80% of customers are more likely to buy a product or use a service from businesses providing personalized experiences.
Segmentation in Zoho CRM allows businesses to easily create targeted marketing campaigns based on a group of customers’ characteristics. For example, when designing your email marketing campaign, you can easily target specific groups of customers using Zoho CRM segmentation. You can then sell to them based on their interests and location.
By creating customized marketing campaigns for each group, you can deliver a rich experience while staying within your budget.
Enhanced Customer Acquisition & Retention
With Zoho CRM’s segmenting feature, businesses can identify their most valuable customers. When you know your customers thoroughly, you can segment them and send out offers tailored to their needs. This helps you to retain your customers and attract more of them.
The feature empowers you to differentiate between loyal, repeat, and first-time customers so that you can tailor your marketing efforts to stamp maximum impact while building brand loyalty. This is because you treat your customers as individuals and not just as static.
Improved Conversion Metrics
Every business wants to improve its customer retention rate. However, for that, you need to understand the mindset of your customers and approach them with relevant tactics. With Zoho CRM’s segmentation feature, you can determine which group your customers belong to, allowing you to tap their expectations from your business. This strengthens the overall customer experience you deliver and pumps the conversion rates.
Moreover, segmenting your customers bolsters various conversion metrics, including conversion rate, abandoned cart rate, and average order value & cart size.
Foresees Customer Behavior
Segmentation enables you to predict customer behavior, which further allows you to understand the buyer’s intent to meet the current needs and assess future actions of customers. By predicting your customers’ behaviors and engagements with your business, you can improve your overall customer engagement and sales. Once you have identified the customer group of interest, it gives you an idea of what they need now and in the foreseeable future. This helps to inspire them to make better purchases in the future.
Build Customer Relationship
Customer segmentation saves a huge chunk of your time so that you can focus on building a stronger relationship with your potential clients.
Segmentation enables you to resolve customer issues more easily because you can now target specific groups instead of addressing them as an individual. This helps you to build a better relationship with your customers and also meet their expectations better.
Increased Customer Satisfaction
Segmentation leads to a more personalized customer experience. It helps you to connect with each customer group in a unique way. When you can reach out to each customer group differently, your overall experience will be better for all customers.
The segmentation feature in Zoho CRM allows you to easily create multiple groups based on various criteria that you choose from. When you know your customers well, it becomes easier for you to identify what they want and reach out to them. Each segment becomes important for your business to cater to them individually and deliver a superior customer experience.
Higher ROI
Zoho CRM helps you better target your audience and get a higher return on your marketing investments. This is because you can deliver more personalized campaigns to each customer group. You can create targeted marketing campaigns and promotions for each segment, which then leads to greater conversions.
Improved Product Development
Segmentation helps in improved product development because you can collect specific data about its customers. The insights can be used to discover product development trends or opportunities for buying team, which helps you shorten the market testing phase.
Suppose you have a data-driven customer segmentation strategy. In that case, your team can develop products your customers will love without the risk of building a product that has the probability of failing.
Consumers tend to change their habits, priorities, and preferences, so they can’t stay in the same group. Besides, thanks to Zoho CRM’s segmentation feature, businesses can have the updated data about the target audience and discover untapped opportunities and channels.
Use Cases: How Zoho CRM Segmentation Feature Help Businesses
There are many industries that have deployed the Zoho CRM Segmentation feature to scale their operations. Let’s have a look at how the healthcare and restaurant industry can implement customer segmentation features from Zoho CRM in sales and marketing.
Healthcare Industry:
Data collected from customer segmentation can help the healthcare industry to identify different types of patients on whom they can channel their marketing efforts.
Healthcare marketers can perform customer segmentation based on the following parameters:
Age: Although all age groups differ, younger and older patients require the most attention. Healthcare marketers can focus on baby boomers as they will be the largest demographics in need of healthcare services.
Gender: As there are several products, medications, and procedures that are gender-specific, healthcare marketers can focus on gender for effective customer segmentation.
Location: Health conditions vary from location to location, which is why healthcare marketers may prioritize specific regions while segmenting their customers.
Education level: The education of your customers decides the style and tone of your marketing content. Hence, it should also be considered while customer segmentation.
Restaurant Industry:
Customer segmentation can help restaurants reach their business goals at a steady pace. As a restaurant owner, the following parameters can be used while segmenting the customers.
Price: Segment your customers according to their budget. For instance, office workers have a small budget for lunch, whereas a big family on dinner can have a big budget for their restaurant trip.
Service: The type of service you offer influences customer segments. Decide whether affluent people are coming to your restaurant or just a small number of retirees.
Customer Type: Marketers can also pay heed to customer type for better customer segmentation and think what type of customers are more likely to visit their restaurant.
Product: Marketers can pay attention to the type of foods they offer to different segments of people. For instance, office workers in the morning want something fast, whereas a family looking for dinner may be interested in multiple courses.
The Bottom Line
There is a lot to discuss on CRM segmentation; it has been said that there are uncountable reasons to use Zoho CRM. Whether you are a small startup or large enterprise organization; whether you have 200 users or 2 million users; whether your team is 1 member or 100 members – customer segmentation will help your company meet its goals and boost its productivity.
So, let’s maximize your customer reach by making use of this powerful Zoho CRM feature!
