Customer Segmentation

Customer segmentation is the practice of dividing a company’s customers into groups that reflect similarities among customers in groups such as age, gender, interests, or spending habits. 

Customer segmentation is the process of dividing a customer base into smaller groups of individuals with similar characteristics. These characteristics can include demographics, behavior, location, needs, and preferences. By segmenting customers into different groups, businesses can better understand their target market, tailor their marketing and sales efforts, and ultimately improve their overall customer engagement and revenue. There are different ways to segment customers, such as demographics, psychographics, behavior, and value-based segmentation.


Use Segmentation Powerfully

Segmentation is usually part of the marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries who have or are perceived to have common needs, interests, and priorities, and then designing and implementing strategies to target them.

  1. Targeted Marketing: Segmenting customers allows businesses to create more targeted marketing campaigns, which can result in higher conversion rates and increased revenue.

  2. Increased Personalization: By segmenting customers, businesses can provide more personalized experiences and offers that are tailored to the specific needs and preferences of each group.

  3. Improved Customer Retention: Segmenting customers allows businesses to identify and address the unique needs and concerns of each group, which can help to improve customer retention and reduce churn.

  4. More Efficient Use of Resources: By focusing on specific segments of customers, businesses can use their resources more efficiently, rather than spreading them too thin across a large, undifferentiated customer base.

  5. Better Understanding of Customer Needs: By segmenting customers, businesses can gain a deeper understanding of the needs and desires of each group, which can inform product development, service offerings, and overall business strategy.

  6. Better ROI: By creating customized marketing campaigns and personalized offers for different customer segments, businesses can increase the return on investment from their marketing efforts.

  7. Better Customer Service: By understanding the specific needs and preferences of different customer segments, businesses can provide more effective customer service and increase customer satisfaction.


Go As Broad Or Granular

Segmenting your customers can be done in many ways. You can choose to be very specific and build thousands of different segments. Here are some ways to generally think about how to divide your customers so you can be more targeted toward your marketing messages

  1. Age segment: Young adults, middle-aged adults, seniors
  2. Gender segment: Male, female
  3. Income segment: Low-income, middle-income, high-income
  4. Occupation segment: Professionals, blue-collar workers, students
  5. Location segment: Urban, suburban, rural
  6. Lifestyle segment: Health-conscious, environmentally-conscious, tech-savvy
  7. Interest segment: Outdoor enthusiasts, fashion enthusiasts, sports fans
  8. Family status segment: Single, married, with children, empty nesters
  9. Education segment: High school graduates, college graduates, post-graduates
  10. Ethnicity segment: African American, Asian, Hispanic, Caucasian.


Segmentation Uniqueness In Jacktrade

In Jacktrade, we use segmentation above and beyond just email marketing. The goal of segmenting customers in Jacktrade is to decide how to relate to customers in each segment across the business functions to maximize the value of each customer to the business. Jacktrade helps you employ customer segmentation strategies across different buyer processes built for non-store retailers. Here are some examples:

  1. Opportunities - You can provide pre-purchase knowledge so your customers are more product or company-aware when they are making purchase decisions. Providing multiple touchpoints to your customers helps seal your deal with the potential buyer. Companies employing customer segmentation operate under the fact that every customer is different and that their communication efforts would be better served if they target specific, smaller groups with messages that those consumers would find relevant and lead them to buy something.

  2. Quotes - You can focus on repeat customers differently than new customers. Or, treat customers coming from certain sources differently, or treat customers interested in a new product with greater attention. Dividing customers into groups based on common characteristics so you can treat each group effectively and appropriately.
  3. Jobs - You can localize your effort or give a higher-order value a bit more focus than others. You can deliver after-purchase care which in the industry is mostly neglected - and your customers should not feel neglected. In addition, you can create segments of customers with certain purchase patterns so you can upsell or cross-sell anything else. You will gain a deeper understanding of your customer's preferences and needs with the idea of discovering what each segment finds most valuable to more accurately tailor marketing materials toward that segment.

There are many such examples across the business functions that can help you create momentum with your customers.


Pre-Created Segments In Jacktrade

There are thousands of ways you can group your customers, and Jacktrade helps make it easy for you to get started. You will find some campaigns already set up in your Segmentation module like

  1. Customers (New to Quotes)
  2. Customers (New to Opportunities)
  3. Customers (New to Support)
  4. New Customers
  5. Active Customers
  6. Inactive Customers
  7. Active & Inactive Customers
  8. Customers in Region (define regions)
  9. Customers bought products (in categories)
  10. Customers with Firmographics only.
  11. Customers with Demographics only.
  12. Customers with Demographics and Firmographics., or one or both.
  13. Customers within the range of price either in Quotes, Jobs, and Opportunities.

If these segmentations do not fit your needs, you can improve them by simply modifying the rule sets present in these segments and using them for your best needs. Pre-built segments are available to all businesses when you sign up and login into Jacktrade.


Auto-Tagging Is For Segmentation

Jacktrade supports manually tagging in almost all the profiles and functions. These tags can be used to create customer segments. We suggest that you strategize how you should tag different profiles in Jacktrade for it is useful to you when using it to communicate with your customers. For example, you can tag a profile with “cold email - new builder”, and a campaign is set up to send an automated email to that profile if that tag is found. Or, you can send an email with specific product knowledge if you like to send specific content and tag it “Send XYZ product video”.

Yes, you should manually tag profiles as you move forward building intelligent data for your business in your Jacktrade CRM. Jacktrade supports bulk tagging in many functions and full tag management that would help in keeping your data clean.

It's hard to always remember to tag data to profiles, thus Jacktrade supports auto-adding tags to many functions. For example: if this customer never purchased from you after you submitted a Quote, and 6 months later you wanted to reach that customer back, well, you can simply use the auto-tag that was created by Jacktrade to communicate back with your customer. You can learn more about the auto-tagging feature in its specific knowledge section. For now, we want to let you know that tagging and auto-tagging features can help in creating an auto-communication platform.


Segmenting For Auto-Communication

Customers can be segmented in Jacktrade using exposed data values, the status of profiles and functions, the age of the data, tags in the profile and function, or even by just manually adding customers to a segmented list. Segmentation grouping auto-groups your customers automatically based on your rules and data. Thus, a good data strategy is important if you want to use this functionality powerfully. And, it requires businesses to develop specific sales automation, marketing, or operations workflows. Everyone just needs to start with one and continue to add to it over time. And, you can also focus on the communication needed

Email campaigns, which are covered separately in different knowledge areas, can be used for your either always-on or limited-time campaign - however, you choose to run them to share information during your buyer's cycles, and it can be built for various content types like

  1. Evergreen content
  2. Seasonal content
  3. Transactional content
  4. Sales content
  5. Marketing content
  6. Congratulator content
  7. Trendy content


Segmenting Customers For Your Marketing Campaigns

Segmentation is important for marketing campaigns because it allows businesses to target specific groups of customers with tailored messages and offers. This can increase the effectiveness of the campaign and lead to higher conversion rates. By segmenting customers based on demographic, psychographic, and behavioral factors, businesses can create more targeted and personalized marketing messages that are more likely to resonate with the audience. This can also help to improve the ROI of marketing campaigns by reducing the cost of reaching non-targeted audiences. Additionally, segmentation can help businesses to identify and target high-value customer segments, which can be crucial for long-term growth and profitability.

Here is how to go about using your segmentation for a marketing campaign

  1. Identify your segments: The first step in setting up segmentation in your CRM is to identify the segments you want to create. This could be based on demographics, behavior, or any other criteria that makes sense for your business.

  2. Pick customer contact fields: To segment your contacts, you will need to identify customer contact fields in your CRM to store the information that you will use to segment them. This could include things like age, location, or purchase history.

  3. Collect data: Once you have created your custom fields, you will need to collect data on your contacts. This could be done through surveys, web forms, or by manually entering data into your CRM.

  4. Segment your contacts: Once you have collected data on your contacts, you can segment them based on the criteria you have chosen. This could be done manually, or you can use the built-in segmentation tools in your CRM to automate the process.

  5. Create targeted campaigns: Once you have segmented your contacts, you can create targeted campaigns that are tailored to specific segments. This could include email campaigns, SMS campaigns, or even direct mail campaigns.
  6. Track and analyze results: The final step is to track and analyze the results of your segmentation efforts. This will allow you to see how effective your campaigns are and make adjustments as needed to improve your results.