Segmentation: CRM Success Strategy, Stage 1.2

One of the reasons CRM got a bad reputation was ironically that it was often a solution initiative that overlooked the prime reason for CRM. Who exactly are our customers? Just importing in a client list and applying them to sales territories is the bare minimum.

Identifying Customer Segments, discrete customer groups that share similar characteristics, and determining how to best service them is a cornerstone of Successful CRM.

CRM helps you get closer to your customers but only if you know who the customers you should be actively pursuing are.

Avoid the trap of trying to find the solution inside the sales and marketing department. Marketing is like the X-Files, "The Answer is Out There!" You've got to talk to your customers in order to build your CRM requirements.

Once you have established your customer segments you can prioritize marketing campaigns, resource allocation, product development and pricing strategies to maximize economic value from high-profit and low-profit customers.