Steps to implementing customer segmentation

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Here are five steps to implementing segmentation:

[1] Setting objectives and goals
Clarify what problem you want to solve, such as "I want to increase the number of new customers," "I want to increase the repeat purchase rate," or "I want to stop customers who have recently been leaving."

Even better, you can set a numerical goal (e.g., increase repeat purchase rates by 10%).

[2] Collecting and organizing necessary data
To group your customers, you first need data.

For example, we collect purchasing history, access logs, responses on social media, survey results, etc.

If the data is fragmented, it will be difficult to analyze, so it will go belgium whatsapp number data more smoothly if you manage it in a single system (such as a CRM) and check for consistency.

[3] Selecting and implementing analysis methods
We use the data we collect to actually segment our customers.

Combine the RFM analysis, demographics (attributes), and behaviors introduced earlier according to your purpose.

If you try to do too much, things will become complicated, so the key is to start with a simple analysis.

[4] Planning and implementation of measures
Each group will think about how to approach the issue.

For example, we change channels and messages by strengthening social media advertising for younger audiences and providing more thorough telephone support and direct mail for older audiences.

Collaboration across departments is often necessary, so be sure to share information thoroughly within the company.

[5] Measurement and feedback
Once you have implemented the measures, measure the results.

Have sales increased? Has defections decreased? How did the company fare in surveys?

If this doesn't work, analyze the data again and reassess how you divide the segments and the content of your measures.

Customer preferences and behavior change with the times, seasons, and trends.

By checking regularly and making small adjustments (this is often called the PDCA cycle), you can maintain optimal segmentation.