Best Practices for Conducting Customer Segmentation Analysis

Article Summary：Customer segmentation analysis is a valuable exercise that helps companies better understand their diverse customer base. By dividing customers into meaningful groups, businesses can tailor their products, services, marketing and support.

Customer segmentation analysis is a valuable exercise that helps companies better understand their diverse customer base. By dividing customers into meaningful groups, businesses can tailor their products, services, marketing and support. Here are some tips for effective segmentation:

• Data Collection: Pull demographic, behavioral and transactional data from various sources like CRM, web analytics, call records etc.
• Segmentation Techniques: Common methods include RFM analysis, clustering, demographic/psychographic profiling. Experiment to find the most insightful view.
• Defining Segments: Give each segment a descriptive name and clear profile based on attributes. Keep segments distinct and actionable.
• Evaluating Profitability: Assess lifetime value and profit contribution of each segment to prioritize the most valuable.
• Selecting Targets: Choose top segments aligned with business goals that offer growth opportunities.
• Testing Insights: Apply findings from analysis into test campaigns before large-scale implementation.
• Refining over Time: Customer preferences change - continuously re-segment with new data to keep insights accurate.

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By choosing Udesk, businesses gain a strategic advantage with a solution that delivers a comprehensive 360-degree view of customers.

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