Segmenting Customers

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This guide by Zoho takes a look at segmenting customers in your database, primarily Zoho CRM, however, also applicable to other applications. Focusing on RFM segmentation (recency, frequency, & monetary) should help improve your metrics. Let’s take a look.

Perhaps you consider the customers that are spending thousands of dollars on your products to be the best—and for good reason. They are your VIPs. But, your best customers in the long run could end up being the ones who are the most loyal and regular in their purchases, and supply a steady source of income to your business. This group may even likely be in a position to start making bigger purchases, given that they’ve demonstrated consistent satisfaction with your products.

In a business context, this means that 20% of your customers tend to contribute to 80% of your total profit. Everyone would like to confidently target their best customers (the 20%) for future growth. Customer segmentation—identifying your best customers and retaining them—is the challenge here.

This Zoho CRM guide for segmenting customers covers these topics:

  • Why segment your customer database?
  • RFM Model of Segmentation
  • Implementing RFM segmentation in your Zoho CRM account
  • The need for segmentation groups in Zoho CRM
  • After segmenting customers

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