Customer segmentation is an important strategy for better understanding your customer base and adapting marketing and services to their specific needs. By segmenting your customers, you can target offers and communication more effectively, leading to increased customer satisfaction and higher profits. This article explains how you can segment customers in ProdSys, as well as the benefits of using a segmentation strategy.
Why Segment Customers?
Before we dive into how to segment customers, it's important to understand why this is beneficial:
Tailored Offers: You can customize offers, campaigns, and products to different groups based on their needs and preferences.
Increased Customer Loyalty: By better understanding your customers' needs, you can build stronger relationships that foster loyalty.
Effective Marketing: With segmentation, you can focus resources on the most valuable customers.
Improved Product Development: Segmentation provides insights that can help you improve or develop new products and services.
Steps to Segment Customers in ProdSys
Log in to ProdSys
Log in to your ProdSys account with your username and password.
Defined Fields for Segmentation
Contact Status
Contact Industry
Contact Category
All fields are used with custom values. These tables are found in the menu under System / Settings /
Edit Contact
Navigate to "Contacts / Contact List" from the main menu.
Choose the contact type at the top of the screen.
Open the contact
Edit the segmentation fields for Status, Industry or Category
Use Customer Data
In ProdSys, you can use existing data to segment your customers.
Filter customers based on specific criteria such as revenue, geographical location, etc.
Use these filters to identify groups that share similar characteristics.
Analyze the Segments
Use ProdSys to analyze each customer segment. Review historical data, purchase patterns, and trends.
This will help you understand which segments are the most profitable and which have the potential for growth.
Examples of where you can use segmentation on contacts are:
Sales Statistics: https://app.prodsys.com/#/economy/sale-statistics
Tailor Communication
After segmenting your customers, you can begin tailoring communication to each segment.
Use targeted emails, campaigns, and offers based on the specific needs and preferences of each customer segment.
Email lists can be found in the menu under Contacts / Email Lists. Here, you can export email lists filtered by customer segments.
Follow Up and Adjust
Segmentation is an ongoing process. As your customer base grows, or the market changes, you should update your segments.
Monitor how effective your segmentation strategy is and adjust as needed to optimize results.
Examples of Segmentation
Demographic Segmentation: A clothing company can segment its customers based on age and gender, allowing them to target products suitable for each demographic group.
Behavioral Segmentation: An online store can segment customers based on purchase frequency, such as "frequent buyers" and "first-time buyers," and offer loyalty discounts to those who shop often.
Geographical Segmentation: A food company can segment customers by region to offer regional specialties based on local preferences.
Benefits of Customer Segmentation
More Effective Use of Resources: Segmentation allows marketing resources to be used more efficiently by focusing on customer segments with the greatest potential.
Better Understanding of Customer Needs: You gain better insight into what your customers want and need, allowing you to tailor products and services more accurately.
Increased Customer Satisfaction and Loyalty: When customers feel that communication and products are tailored to their needs, customer satisfaction and loyalty increase.
Conclusion
Customer segmentation is a powerful tool for optimizing marketing and sales strategies. ProdSys gives you the ability to segment your customers based on various criteria, allowing you to maximize the effectiveness of communication, sales, and product development. By following these steps, you can easily identify the most important customer segments and adjust your strategies for greater success.