Market segmentation is crucial to a business’ sales and marketing programs. If they’re going to be successful in marketing their product, they need to target people who would actually have a need for it. Otherwise, businesses would be spending tons of money on unprofitable ventures.
Market segmentation is generally looked at as a part of the marketing process. Sales representatives aren’t supposed to think about their target audience, rather they’re supplied with it by the marketing team. The communication between the sales and marketing teams is crucial for the effective targeting of the market segment.
With CRM software, however, the process changes a bit. With all the data stored about customers in the software, businesses can easily find their specific target market. This information needs to be communicated between the sales and marketing teams. When done correctly, this process is more efficient and effective.
A recent Toolbox article discusses marketing segmentation and the use of CRM. According to the article, businesses can improve their segmentation with CRM software:
“There's an art to effective market segmentation, but it's an art that can be learned. What's more, modern CRM tools can help you come up with effective segmentation and guide you in producing strategies aimed at maximizing returns on the segmentation approach.”
With CRM software, sales representatives are better equipped to finalize sales with the data and information about customers stored in the system. The data allows them to predict customers’ needs and wants based on their past order history.
In addition, marketers are better informed with CRM software because they have information about their target market. They can analyze statistics and incorporate the new information into their market segmentation process.
If you would like more information about CRM software, contact us. Enjoy your Labor Day!