How To Segment Your Customers using SAP BW and CRM

 

Every marketer is constantly consuming information about their prospects and customers to support their customer segmentation strategy. 

 

 

Unfortunately, prospects and customers like to play Hide-n-Go seek with their personal information.  That why every customer segmentation project usually requires that a marketer come up with a unique customer segmentation model for each possible customer segment.  Knowing these customer segments and the important information you, the marketer need to know about them, is key to achieving an optimized customer segmentation strategy.

 

 

Customer segmentation analysis starts by mapping out your typical customer journey.  This exercise usually requires a combination of digital sleuthing skills and educated guesses.  But it is foundational to successful Customer Segmentation.

Digital technology, such as that provided by SAP, allows you to track every interaction your business has overtime with both prospects and customers.  You will often find that at a macro level, certain groups of customers follow similar routes to purchase. Your Customer Relationship Management (CRM) will usually have more detailed information about your customer's behavior than you realize.

One especially useful source of information for developing customer segmentation models is to take a look back at how your current customers became customers.  This can be a challenge if you do not have your digital tracking fully dialed in, but it can be done.  There's nothing more useful than talking directly to customers.  They may not remember exactly how they became your customer, but they will remember how they felt becoming your customer.

  

 

That is what makes effective marketing using advanced crm segmentation strategies so challenging.  Using CRM, SAP HANA provides the ability to identify and perform CR M market segmentation on vast quantities of customer data.  CRM in SAP encompasses a wide range of capabilities to analyze and deal with current customer segmentation prerequisites so you can concentrate on higher level customer segmentation activities.

 

 

Want to know more about using technology and research to develop effective customer segmentation prerequisites and strategies?  Want us to do Inbound Marketing for you using SAP CRM and Hubspot in a powerful, analytics driven customer segmentation research process. 

Why Do Customer Segmentation?

One of the reasons for doing customer segmentation is to ensure each marketing campaign is successful.  Your marketing strategy usually involves a series of highly focused, unique marketing campaigns.  By creating a target audience based on highly data driven customer segments, you can focus your paid advertising on highly granular customer segments.

Improved Brand Loyalty

Customer segmentation strategies are essential for businesses to improve brand loyalty and customer loyalty. By segmenting customers based on their behavior patterns, demographic information, and needs, businesses can create targeted marketing campaigns that resonate with different customer groups. These campaigns can help businesses build stronger relationships with their loyal customers, which can lead to increased brand loyalty over time. With the right customer management system in place, such as SAP CRM, businesses can leverage advanced segmentation capabilities to identify and analyze vast quantities of customer data. The result is a more data-driven approach to marketing that can help businesses achieve incredible results in terms of customer engagement and brand loyalty.

 

In-Store Customer Loyalty Management

Retailers spend a lot of money on physical locations and inventory, as well as personnel and promotional marketing.  That's why they need to build customer loyalty system.  The last thing a retailer wants is to not meet a customer's wants and needs because they didn't have a particular brand.  The customer usually has a favorite brand, for instance, a favorite shoe brand, but will view a store negatively that doesn't have their size, when they want it.  The next store they go to that does have it will probably win that customer's business in the future, perhaps for the rest of their lives.  This just goes to prove that customer relationships are a fragile thing.  Trust is hard to establish and easy to break.

 

Assign Marketing Teams to Different Customer Segments

In addition to segmenting customers, companies can also segment their internal marketing teams and assign them to specific external customer segments. This can be achieved through the use of SAP HCM and SAP CRM, along with a Learning Management System. SAP provides these tools to help businesses implement a successful customer segmentation strategy. By leveraging the capabilities of these tools, marketers can create targeted marketing campaigns that resonate with different customer groups. Assigning marketing teams to specific customer segments ensures that each campaign is focused, unique, and successful. With the right customer management system and segmentation strategy, businesses can achieve incredible results and build strong relationships with their loyal customers.

 

Challenges of Customer Management

 

Customer management in SAP can be a challenge.  But when you have the right customer segmentation strategy, and the right customer management system in place, you can achieve incredible results.  Just click the button to get SAP Consulting expertise.

 

 

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