Of course, any insights you gain will rely on how reliable and relevant your data is. Likewise, the quality of your data will depend largely on the tools you put in place to gather, organize, and analyze it. As you decide which customer segmentation software to use, take note of the following factors:
Your customer segmentation tools should be able to integrate data from a variety of sources. The CRM solutions you use, the data you receive from website and retail purchases, and the tools that track user behavior on your company website all provide a wealth of data. If your customer segmentation tools are unable to understand that data, however, either you will have to find another way to convert that data. This will create additional expenses, or may cost you valuable opportunities to analyze that information and develop effective marketing strategies.
Data collection and analytical tools
What features do the tools you are considering offer? How easy is it for your team to access the data in your customer segmentation system once it’s been gathered? Is the system able to present that data in an easy-to-understand format, and can you export it into formats that other software can read? The answers to these questions will help you determine approximately how effective a potential customer-segmentation solution may be.
Flexibility and scalability
Your business is likely to grow and shift over time. When you split your customer base into different segments, you need to be able to analyze the data from each of those segments and use that data to develop applicable strategies for each one. Look for a solution that is flexible enough to not only be a good fit for your business now, but also to also be a good fit five years from now.
Developing and following your customer segmentation methodology is an investment, and you’ll need to consider cost. Some tools are more expensive than others, and the added cost isn’t always justifiable. Keep in mind, though, that some of the cheaper options available may be less robust. Determine what the value of the tools you are considering can represent to your business. Consider checking out tools that offer a free trial period, so that you know what you’re getting before you make any commitments.