Customer Segmentation

Smart companies segment their customers into different groups. While every customer is important, different types of customers tend to have different types of requests and needs. For example, a customer that has been with a company for two years is going to have different questions than someone who has been with the company for a month.

With that in mind, customer segmentation makes providing customer service much easier. Key customers can have the opportunity to work with the best representatives at the company on more complex issues. There is no need for a key customer to wait in the phone or a ticket queue behind another customer that has a simple issue and makes the company little to no money.

Segmentation makes it so the best customers or the most advanced customers do not have to waste time going up the escalation ladder. It also lets customer service representatives tailor the customer service experience more and lets them know what customers to really go out of their way for.

Though it isn’t purely egalitarian, segmenting does make sense. The best customers do deserve special treatment and special SLAs. If a key customer makes an order, chances are it won’t be a fraudulent order or an order where you need to wait for their bank account to clear. You shouldn’t treat your customers like criminals, but many companies find themselves having to take extra precautions in certain situations. Segmentation allows you to eliminate many of the problems associated with this.

Segmentation can also be useful for dealing with “VIP” customers or customers who have a lot of previous frustrations with your company. It’s much easier to put a customer like that in your “key customers” group than to instruct every staff member to look out for him or her and then try to do all you can to make his or her life easier.

Segmenting is about treating your best customers better. It doesn’t and shouldn’t make regular customers second class citizens, but it should certainly ensure those that are paying you the most or that are most profitable to you have an extra reason to stay with your company.

Do you segment your customers at all? If so, to what extent and how?

One Response to “Customer Segmentation”

  1. Bookmarks about Segmentation said:

    Aug 19, 08 at 12:31 pm

    […] – bookmarked by 1 members originally found by Prajith on 2008-07-27 Customer Segmentation – bookmarked by 3 members […]