The Guide to Segmenting Contacts in Your CRM

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The Guide to Segmenting Contacts in Your CRM
by Anastasiia Dyshkant

The Guide to Segmenting Contacts in Your CRM


With all the benefits a customer relationship management (CRM) system can provide, contact segmentation is among the most significant ones.




This feature allows businesses to organize and control their sales and marketing activities to the full extent. Segmenting contacts in CRM will enable you to leverage all the data to grow your business even more by adding value to each customer.


How to segment your contacts in CRM so that it would bring maximum results? This post will guide you through the nature and principles of contact segmentation inside and out.

segmenting contacts


What is contact segmentation in your CRM?


In plain English, segments are subgroups of contacts from your database, divided by their interactions with your brand.


Contact segmentation breaks your customers into smaller lists so that you could optimize the efficiency of eCommerce or any other business of yours by proper communication with each customer group.


Each contact segment in your CRM contains customers with similar characteristics or behaviors. You might have a list of people who’ve visited your website’s homepage. Or, there can be a list of users who’ve subscribed to your email newsletters, looked for a specific service, ordered from you, etc.


Segmenting contacts in CRM, you’ll send more personalized marketing messages to these different types of users for more effective customer communication and relations.


What contact segments you might want to include into your CRM:


  • Contacts who’ve visited your homepage
  • Product page visitors
  • Email subscribers
  • Existing customers (single order)
  • Repeat visitors
  • Repeat customers
  • Content downloaders
  • Cold/hot leads
  • Shopping cart abandoners
  • Conversion completed/uncompleted
  • Demographics (by age, gender, location, known interest, etc.)


This list isn’t full. Every business can segment customers by their own criteria, according to their business goals and marketing strategies they use.


Why segment contacts in CRM


Creating contact segments in CRM makes your work more comfortable and more effective. With customer segments at hand, you’ll send more relevant and better-targeted marketing messages to each group, engaging them and influencing your business conversion that way.


Contact segmentation helps you save and manage time on the audience research. You’ll see profiles of the buyer persona from every separate subgroup and understand their specific needs. This information will allow you to send more authentic business messages to each contact group instead of sending the same generic messages to everyone.


Segmentation can boost your business profit by far: For instance, an 89% sales uplift and 58% increase in average order value are the results of segmentation Venture Harbour got for one of their clients; yes, it’s a mere example, but the numbers speak volumes, don’t you agree?


Unlike with your internal business communication, contact segmentation requires extra tools to get the job done. A customer relationship management (CRM) platform is the essential one to use for that:


Not only do automation features of most CRM platforms allow you to create profiles for individual customers, but they also help you craft and manage your segmented lists. More than that, you can migrate all the data between different CRMs, updating customers’ info along with their buying processes and extra data you gain from them.


How to segments your database in CRM

segmenting contacts

Once you decide which contact segments meet your business needs, it’s time to implement them into your CRM and start segmenting customer subgroups by them.


Here go the most common segments for your database to consider:


Segmentation by tags


In CRMs with segment builders, tags hide behind the “Contact Details” condition. They represent some general data about customers: For example, tags can identify customers of particular products or represent clients you migrated from your old customer relationship management platform.


You can generate tags that will be most relevant to your database. Feel free to use hashtag generator tools for that, or brainstorm and come up with unique tags for your CRM platform.


Segmentation by custom fields


With different custom fields in CRM, you won’t have to generate too many tags for every contact subgroup.


A custom field is what tells the full story of your clients. You can add as many areas to your CRM as needed to learn customers better and segment them accordingly.


Feel free to segment contacts by their favorite pets, the food they love, social media they use, etc. The more data you have, the more segments you can create. Consider those most critical to know for positive marketing results.


Segmentation by source channel


A source channel is how a contact came to you. Segmenting the database by how you acquired them will help you determine the marketing areas and strategies for further focus and investment.


Source channels can be organic traffic, paid ads, social media, referral traffic, etc. They are easy to track if you use marketing analytics tools, and everything you’ll need to do is associate the data from those tools with contact records in your CRM.


Segmentation by time


By “time,” we mean a moment of contact conversion. As a rule, it’s automatically recorded in a CRM platform.


Segmentation by this attribute can help you determine a specific content asset, marketing campaign, promotional SMS, or any other business feature of yours that engages leads and converts them into customers.


It will give you insights into customer retention trends and help to organize your budget and marketing campaigns accordingly.


segmenting contacts

Segmentation by demographics


This one is the most common segment in CRMs. It allows you to group contacts by age, gender, and location so that you could communicate corresponding messages that meet users’ needs most.


With such segments, you can target ad campaigns more precisely. Segmentation by demographics is a must for brands with a wide range of products for a multicultural audience.


Segmentation by product


If your business sells multiple products or offers several services, segmenting your contacts by which one they use can help to send contextually relevant messages to them.


Document a product of choice in every customer’s profile. This information will enable you to build a proper brand communication with customer groups based on their preferences and interests.


Segmentation by deals


Use the characteristics of customer deals in CRM to organize the groups on every level of your purchase funnel and control the process for better efficiency and sales.


These characteristics include deal status (open, closed, lost), stage, value, a person responsible for the deal, etc. Also, you might want to segment contacts by the number of deals they have: It helps to score leads, manages loyal clients, propose some perks to your repeat customers, and more.


In a Word


Contact segmentation in your CRM can help to increase your leads’ quality and make stellar marketing decisions for turning those leads into loyal customers. The more details you know about a customer journey in your company and how users change through it, the more successful you’ll guide them towards the desired action.


Segmenting contacts, you’ll know customer subgroups on different sales funnel levels and develop the best solution for each subgroup on their way to purchase and beyond.


And the Trujay blog will reveal even more useful tricks for you to try with CRM and get maximum benefits from it.


This guest post is by Lesley Vos, a content writer at Bid 4 Papers and contributor to publications on business, digital marketing, and self-growth. Feel free to ask her for guest posts on LinkedIn.