The Benefits of Account Segmentation
By Paula Quiroz
How Account Segmentation Benefits Both Customers and Businesses
What is account segmentation?
Account segmentation is the process of dividing customers into categories. This grouping is based on common characteristics that reveal insights into what each customer or account is looking for – allowing for personalized marketing and sales touches that are more effective. With customer segmentation, customers’s needs are effectively met and businesses increase customer acquisition and sales. It’s a win win!
Common characteristics to segment customer accounts can be based on demographics or behaviors (e.g., life stage, age, geography, income, relationship status, job type, Industry, tenure with your company, etc.).
How to effectively segment customer accounts?
How can account segmentation improve performance?
Account segmentation brings many benefits. There’s a reason many companies adhere to this practice.
One of the top benefits of account segmentation is insights – insights that lead to a better understanding of a customer.
Understanding your customers is key to customer acquisition and increased sales. Understanding a customer allows companies to send them tailored emails, social media posts, collateral pieces, calls, etc. that matches their need and increases the customer lifetime value (increasing tenure and the amount of sales with existing customer).