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The Power Of CRM: Using Clean Data & Segmentation In Marketing

Adam Herbert CEO Go Live Data

Co-Founder and CEO of Go Live Data, Adam Herbert, reveals the secrets of a successful CRM strategy built around segmentation and how you can create one for your business needs

If you want a successful marketing campaign for your business, that truly grasps who your audience is and how they favour in terms of increased sales and customer retention, then building a CRM strategy focused on segmentation and incorporating clean data is imperative. Segmentation does the work for you, but it’s important to know how you can develop an effective strategy. In this article, I will explain how you can devise an effective CRM strategy.

Establish your objectives

A CRM system can help your business in numerous ways, such as improving customer satisfaction, increasing customer retention, increasing sales, and forecasting sales. Not every one of them may apply to your business. Nevertheless, before you delve into creating your strategy you must determine your goals.

Setting the criteria

CRM segmentation involves dividing a customer base into distinct groups based on shared characteristics, behaviours, or preferences. These segments enable businesses to target their marketing efforts more precisely, deliver personalised experiences, and build stronger relationships with customers. The key to an effective CRM strategy lies in understanding the unique needs and expectations of each segment and tailoring interactions accordingly.

To craft a successful CRM strategy based on segmentation, businesses must first identify relevant criteria for grouping their customers. Segmentation criteria can vary based on the industry, product, or service, but commonly include:

  1. Demographic factors: Age, gender, income level, and geographic location can provide valuable insights into customer preferences and behaviour.
  1. Psychographic factors: Lifestyle, values, interests, and attitudes help businesses understand the emotional and psychological aspects that influence purchasing decisions.
  1. Behavioural factors: Purchase history, frequency of interactions, and brand loyalty are essential in categorising customers based on their actions and engagement with the business.
  1. Firmographic factors: In B2B settings, factors such as industry, company size, and location become crucial for effective segmentation.
  1. Technographic factors: For businesses dealing with technology-related products or services, understanding the customer’s technology usage, preferences, and adoption patterns can be insightful.

 

How to develop a powerful CRM strategy

The foundation of any segmentation-based CRM strategy is robust data collection. Businesses need to gather relevant information through various touchpoints, including online interactions, purchases, surveys, and social media. Advanced analytics tools can help in processing and extracting actionable insights from this data.

Once the data is collected, businesses should identify the most relevant segmentation variables based on their goals and industry. For example, an e-commerce business may prioritise demographic and behavioural variables, while a software company might focus on technographic and firmographic criteria.

Using the identified variables, businesses can create distinct customer segments. Each segment should be the same within and contrasting between, ensuring that the members of a segment share common characteristics that set them apart from other segments.

With segmented customer groups in place, businesses can now develop targeted communication strategies. This involves crafting personalised messages, offers, and content that resonate with each segment’s specific needs and preferences. Automation tools can aid in delivering timely and relevant communications.

An effective CRM strategy goes beyond communication and extends to the entire customer experience. Businesses should leverage segmentation insights to personalise product recommendations, website interfaces, and customer support interactions. This personalised approach enhances customer satisfaction and loyalty.

Of course, the business environment is dynamic, and customer preferences may evolve over time so It is crucial for businesses to continuously monitor the effectiveness of their segmentation strategy. Regularly analysing customer data, obtaining feedback, and staying attuned to market trends will enable businesses to adapt their CRM strategy accordingly.

Benefits of CRM Segmentation

So what are the benefits to CRM segmentation to your business? Firstly, it facilitates enhanced customer understanding by allowing businesses to move beyond a one-size-fits-all approach, gaining a deeper insight into diverse customer groups. This understanding is pivotal in crafting targeted strategies.

Secondly, segmentation enables improved targeting by tailoring messages and offers to specific customer segments. This customisation significantly increases the likelihood of resonating with customers, ultimately driving engagement.

Thirdly, personalised experiences derived from segmentation contribute to increased customer satisfaction, as individuals feel understood and valued by the business. This not only strengthens the customer-business relationship but also fosters loyalty. Moreover, by addressing the unique needs of each segment, businesses can build stronger relationships, reducing churn and ensuring greater customer retention. Finally, segmentation plays a key role in efficient resource allocation. Targeted marketing efforts result in more strategic resource distribution, maximising the impact of investments and ultimately contributing to the overall success of the business.

Conclusion

In the ever evolving-era of customer-centricity, businesses must adopt a comprehensive CRM strategy now more than ever to thrive. Among the various approaches, segmentation is a key player in creating targeted and personalised interactions that resonate with a diverse audience. By understanding each group’s needs and meeting them with effective communication and tailored experiences, you and your business will be on the right track to building lasting relationships and cultivating a community. Implementing a segmentation-based CRM strategy is not a one-time task but an ongoing process that requires continuous monitoring, adaptation, and a commitment to delivering exceptional value to customers. In doing so, businesses can position themselves for sustained success in an increasingly competitive market.

 

About Adam Herbert

Co-Founder & CEO, Go Live Data

www.go-data.com

With over two decades experience of working in the data and marketing industry with a particular focus on email marketing, Go Live Data’s CEO, Adam Herbert, has spanned a career of working and supporting several market leaders. Across this time, Adam has helped leaders and their organisations with market sizing, supporting their growth through data driven strategies and helping businesses move from traditional marketing methods into the digital arena which continues to evolve at a rapid rate. 

He now runs his own businesses to really drive change in what is seen as a stagnated industry. With a particular focus and track record in business strategy, operations, product marketing and sales, Adam’s professional career has always been focused on helping customers drive revenue via strategic data lead strategies and has guided some of the world’s largest businesses through GDPR to help update and maintain a compliant database as well as understand what good looks like in terms of outreach to new prospects for his clients.

Adam enjoys reading and photography in his spare time and is based in Altrincham. 

About Go Live Data

www.go-data.com

Go Live Data is the UK’s premier data and engagement business, helping companies manage their outbound engagement and internal data assets using their unique 1.6M corporate data universe.

Go Live Data is a disruptor in the data landscape and on a mission to build the best corporate service in the UK with a focus on clean, compliant, reliable data, exceptional customer service, and allowing their customers to access the information that will help them realise their vision for success. To date they have built a database of 1.6 million limited and PLC organisations’ data – making it the most comprehensive one in the UK market.

Having always been led by data, they innovated their own email-delivery platform, QR code technology for direct mail, and a new way of providing data for telemarketing. Supported by their industry-leading database, Go Live Data have helped many customers improve their client acquisition and retention through their one-of-a-kind data and technology. Whilst ensuring all of their data is used in an ethical and responsible manner, they stand out as a voice for improvement in the wider data industry.

Go Live Data also provide a human-led approach to establish a better-class data set and premium experience for their customers by refreshing their data every 30 days which is unprecedented in the data industry. They pride themselves on not just being a supplier, but a partner to their customers by taking a more consultative approach that ensures that, with their support, they can continue hitting their outreach goals and targets for years to come.

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