When implemented correctly, customer segmentation is a great marketing tool. The first step towards achieving success with segmentation is planning. Many segments are available for marketers to choose from. However, it is important to focus on those segments that your target audience fits into. This is why you must select segments and accomplish customer placement with precision. Keep reading to learn more.

As pointed out earlier, planning is the key to successful customer segmentation. So, what does planning entail when it comes to customer segmentation? Here are important steps you should adopt;

1: Determine Whether or Not You Need to Segment

If you have many customers and carry out a wide range of interactions with each customer, you can engage customer segmentation to enhance your business. This tool enables business owners to determine the varieties of customer groups that they primarily serve. A business also engages segmentation to determine specific ways it interacts with those customers.

For small businesses, customer segmentation may not be necessary, particularly if it is just a small and manageable set of customers. On the other hand, businesses with many customers cannot do without customer segmentation.

2: Organize Your Customers List to Learn More about your Customers

A great way to determine the options you are working with is to organize your customer’s list by gathering their information in one place. Use an electronic format to set and organize your customers’ information. Another approach you can adopt is to purchase a contact software program. Such programs are useful for segmenting the customer base.

The sources of data for customers segmentation include customers’ purchases – e.g. items purchased, purchase amounts, payment methods, and addresses. When you organize your clients or customers, adopt a descending profit margin order.

At this planning stage also, a business should take advantage of segmentation tools and services. Some businesses choose to outsource customer segmentation. The customer segmentation services help businesses in profiling their customer base.

The different groups that your customers can be categorized into using these services include lifestyle and value groups. Segmenting your customers into such groups would help you target them more effectively with your sales copy and marketing activities.

3: Get More Customer Information

Beyond purchase information, it may be necessary to generate additional customers’ information. This will help you achieve the necessary distinctions for achieving customer segmentation.

You can achieve this feat in several ways. For instance, you can take advantage of demographic information from a relevant trade association or industry. Another approach is to ask your customers directly by using the opt-in form to collect their information. You should consider offering a discount or freebie to bait them into signing up.

Finally, many businesses often outsource customers’ information gathering to external consultants for better outcome.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.