Not every customer brings the same value to a business, nor do they need the same kind of attention. And yet, it's common for a CRM to be used giving the same generic treatment to every contact, wasting information that's already there to treat each one more intelligently.
What segmenting actually means in practice
Grouping CRM contacts by criteria relevant to the business: historical purchase value, frequency, the type of product they usually buy, or the stage they're at in the sales process. Each group can receive different treatment, communication and priority level.
Why it improves results so much
A customer who buys a lot and often deserves different follow-up (closer, more proactive) than someone who bought once a while ago and hasn't returned. Without segmentation, both receive the same generic email, wasting the former and probably annoying the latter with communications they don't care about.
Common segmentation criteria
Total amount spent, purchase frequency, time since last interaction, source channel (how that customer arrived) and sales funnel stage are the most common criteria and the easiest to pull directly from data any CRM usually already has.
How to start without overcomplicating it
You don't need complex segmentation from day one. Starting with three simple groups (high-value active customers, occasional customers, and contacts who've never bought) already lets you personalise treatment noticeably, without needing a sophisticated system.
Frequently asked questions
Do all CRMs allow segmenting contacts this way?
Practically every modern CRM, even ones aimed at small businesses, includes some form of tagging or basic segmentation of contacts by custom criteria.
How long does it take to implement basic segmentation?
For simple segmentation into three or four groups, a few hours are usually enough if the data is already properly loaded into the CRM.
Does segmentation need reviewing often?
Yes, customers move between groups over time (someone who was occasional can become a regular, or vice versa) so it's worth reviewing and updating segmentation periodically, not setting it up once and forgetting about it.