How to use segmentation?

Customer segmentation is one of the most useful features in Livespace. It streamlines the daily work of your sales team. Once configured, segmentation allows you to automatically determine whether a particular customer is (very) important or not, and also shows which clients come closest to your ideal pattern of perfect business partner. Thanks to segmentation, you can determine the types of customers you are working with, and easily find out on which ones you should focus to achieve success. It is you who knows which customers are most important in your business, therefore in Livespace all the segmentation criteria and their relevance can be freely changed, added, or deleted. Once you configure segmentation, the whole process runs automatically.

An example of customer segmentation

Let’s suppose you run a company which provides marketing services. Your company’s best customers have full decision making in Poland. They do not have to consult with their foreign headquarters on the costs. In addition, they have several brands in which they are investing a lot, and you know the board members, what makes it easier to discuss large strategic projects. In such case your segmentation model may look like this:table

The above table is only an example oevaluating customers. In order to carry out effective segmentation, you should analyze your current customers and determine the features of the most critical ones. To do this, you do not need any special tool – a sheet of paper, a pen, and a moment of patience will suffice. Once you have determined how to distinguish your key customers from those less promising, specify which parameters are the most important for you and your company. After that, you are ready to segment your customers.

Configuring the automatic segmentation of companies 

To set the segmentation process:

  1. Go to the Account settings.accsettings
  2. Select Contacts from the left menu and then the Segmentation tab.Contacts in menu Livespace CRM
  3. Press on the  Segmentation (companies).segmentation
  4. If you are setting up segmentation for the first time, you will see the initial message of the configuration wizard. Press Start to begin customizing the segmentation.wizard
  5. You will see several pre-defined segmentation parameters in the configuration wizard. You can also add your own parameters, but before doing it, set up the first parameter field:
  6. First, determine the value ranges for the parameter (in this case, the number of items that can potentially be sold).
  7. Now, assign points to each range. If you want to favor some range that seems more important to you, just grant it more points.range
  8. You can also add another range or delete an existing one.addrange
  9. Finally, set the parameter relevance levels to define their influence on the overall assessment of a company (or a person in the case of people segmentation).parameter
  10. Press Skip to segments naming button.
  11. Give a name to each segment. For example, the lowest segment to which company or person will be automatically assigned on the basis of your configured parameters can be defined as ‘Poor’. The best companies may be thrown to the ‘Perfect’ segment.segmentname
  12. You can also change the point range for each segment.lefttoallocate
  13. To save all the segmentation settings, press Save information and finish the configuration and close the configuration wizard. From now on, your customers will automatically be segmented according to these settings.saveinformation

You can always return to the segmentation configuration wizard in order to change the criteria or the relevance level of a particular parameter. After saving it, new changes will automatically affect the segmentation process for all Livespace contacts.

Adding a custom segmentation parameter

You can add your own parameters to segment your customers. You can do it during the first time you use the segmentation wizard, as well as later. To do this:

  1. Go to the Segmentation (companies) or Segmentation (people) page, or skip this step and go to step 2 if the segmentation wizard is already open.segmentation
  2. Click on the Add parameter link.addparameter
  3. Select Add.selectadd
  4. A new window pops up. Type the parameter name. Additionally, you can type in its description.
  5. Select the information type depending on whether the data will be numeric or non-numeric (e.g. words).
  6. Specify the ranges and assign them appropriate points.

  1. If all parameters are configured properly, click on Add.

  1. Your newly created parameter will be visible on the segmentation tab.

Using the segmentation of companies 

After the proper configuration of the company’s segmentation feature, you can quickly identify your key customers. Simply, use the Segmentation filter at the bottom left corner of the Contacts tab, and select a segment of your choice:seg1The information about the segment to which the given contact has been automatically assigned appears on the contact profile below the company logo:companysegment

Configuring the automatic segmentation of people 

Segmentation of people can be done in almost the same way as the segmentation of companies:
1.    Go to the Account settings.accsettings

2.    Select Contacts from the left menu, then choose the Segmentation tab.Contacts in menu Livespace CRM

3.   Click on Segmentation (people).segmentationpeople

4.   The next step of setting up the segmentation of people is the same as configuration process for the segmentation of companies.

Using the segmentation of people

Same as with the case of company segmentation, click on selected segment name next to the list of people in the Contacts tab. You will see all the people that have been automatically assigned to a given segment:seg1The name of the segment to which the contact has been assigned according to your segmentation criteria appears on the contact profile, below the contact picture.valerianseg

Worth knowing:

  • After you configure the segmentation, determine in what way customers from different segments should be serviced in your company, and what actions your sales team working with them should take. For example, consider how to deal with customers from the segment of the highest sales potential, and what to do with those who have been assigned to the lower segments. You can also adopt a different model of the sales process for your key customers. You can read more about many sales processes here.
  • You can freely decide which parameters should be used to segment your customers. If you want to evaluate them on the basis of the parameter that is not present on the contact profile, just add a new field to the contact editing form. You can read more about the form management here.