#SmallBusiness60: Episode 8
When it comes to storing relevant information about contacts on your contact database, list segmentation is the place to start. Yet, search for ‘list segmentation’ on Google and you’ll find millions of results. Segmentation is one of the key parts of CRM.
Simply put, list segmentation means treating different contacts in your database in the way that is relevant to them and their relationship with you.
In spite of what the film ‘Spartacus’ may have us believe, we are not all the same…
But when you delve deeper into those millions of results on Google, it’s easy to get confused. What should and shouldn’t you be doing with your contacts on your CRM?
- Are they hot, warm or cold?
- What have they bought?
- Where are they based?
- When did they last click?
- What services interest them?
- Are they male / female?
- What lead source did they come from?
….The list goes on much longer.
All of those segmentation options would be fantastic, if you can manage them, but most of us can’t spare the time, the effort to segment to that degree.
Practical List Segmentation
So as a practical list segmentation step in your business, try and segment by buying status, service interest, and if possible, by lead source:
- “Buying status” means are they a lead, active client or past client. If your CRM can tell you the value they’ve been in the past, then so much the better.
- “Service interest” describes a buying interest. What page they were on when they left their details, could tell you this. Or how they answered a question on your form might help you to understand this. Knowing this, you know how to follow-up or frame a conversation with them when you speak.
- “Lead Source” simply describes how they found you. Did somebody refer them? Did they reply to an ad? Are they following you on social media? If you can track this, then you can periodically measure what marketing activities lead to the most profitable work. If you can’t accurately, then it’s not the end of the world, but when you next look for a CRM, it might be worthwhile to choose one that allows you to do this more simply.
Segmentation is a key part of relevant marketing communications:
- Not doing it all – and treating everybody on your database the same – results in generic, bland, disengaging communications. It’s one of the pillars of profitability for any client services business.
- Overcomplicating it results in too much work to manage, or not getting round to follow-up at all.
- But doing it simply and effectively increases engagement, click through rates and action.
How are you going to manage your contact list?