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CRM software is a powerful tool to have in your arsenal. With it, it’s much easier to sell as you have all your customer data accessible in one place. Additionally, you can streamline the process and make automations. However, when it comes to the extensive list of features, many small business owners seem not use CRM segregating or tagging as effectively as they could.

So, exactly is CRM Segregating, and why is it so important? Stay tuned to find out.


What Exactly is Customer Segmentation?

Segmentation Explained

Let’s start the blog post by defining what customer segmentation is! To put it simply, it’s separating your customer base based on some traits. It’s that simple!

However, you could segregate your customer base in multiple ways. Here are just a couple of them:

  • Geographic Segmentation Model – You’re separating your customers based on their location with this model. That could be generic, like which country they are in, to more specific, like the neighbourhood they are located in.
  • Demographic Segmentation Model – In this model, you’re separating them based on various characteristics. That could be anything from gender, age, profession and that sort.
  • Interest-based Segmentation Model – With this, you’re separating your customers based on what they show interest in. For eCommerce businesses, that usually means which product they like the most.

And many more!

Why is CRM Segregating/Tagging so Powerful?

Now that you understand what CRM tagging is, you might be thinking: “Why should I do that?”

Well, there are a couple of reasons for it.

First, if you don’t do it, you’re losing many potential profits. With segmentation, you can serve your customers better by providing them with customised content and specialised deals.

But that’s not the only reason why you should do it. Additionally to that, segmentation is excellent for market research. For example, you can understand who most of your clients are and what they value.

Furthermore, you can also identify who is your ideal client by finding out the most profitable clients.


The Strategy for Segmenting Your Customers

CRM Segmentation Strategy

So now that you understand why segmentation is so powerful, you probably want to know how you can do that yourself.

However, before I reveal how you can start doing it, I’ll have to tell you one thing. This strategy isn’t going to tell you the exact steps. That’s because, unfortunately, each CRM software is different, with unique ways to segment your clients.

And with that out of the way, let me show you the strategy:

Step #1 – Determine Your Segmentation Goal

Before we start creating tags to group our customers, we should first think about why are we segmenting in the first place! 

  • Is it to create customised content and offers to your customers?
  • Maybe you’re doing it for market research?
  • Or something else? 

Whatever it is, make sure you write it down as it will become helpful in the next step.

Step #2 – Filter Your Customers Into Groups

Now that you know your objective, it’s time to sort your customers. You can do that by creating tags for it. 

However, when you do, make sure these tags are actually helpful! If they aren’t, then you would’ve wasted your time. So instead, remind yourself of the segmentation goal and brainstorm all the tags that would be useful. 

Then just go through your customer list and start filtering them.

Step #3 – Test Your Segmentation and Analyse

Now that you’ve got your clients segmented, there’s nothing else to do but test your segmentation out. So try them out and see if you see any improvements. 

If not, then go back to the drawing board and look at what could have been the problem. You can fix your issues and then grow your business to the next level. You should also do that even if you see improvements.

You can never run out of ways to improve!


So as you can see, segmentation is quite a powerful tool. With it, you can serve your clients better while also learning more about your clientele and what they value. So instead of letting this knowledge collect dust in your head, why not take action? 

That’s the only way you’ll get any value from this article. However, if you find segmentation too tricky or have any other problems, don’t be afraid to ask for help. I’d love to help you grow your small business to new heights. 

So, schedule a call with me, and let’s see how I can help you out.