Recently, I find many of my clients segment their existing client base in a new way in response to Covid-19. This new segmentation strategy is placed to ensure customer success teams can prioritize customer slew of stop-payment requests, discount asks as well as to effectively identify expansion opportunities.
How this works:
If you haven’t changed how you segment your existing customer base, continue reading this article to better understand how this works:
First, you’ll need to make sure each account is assigned with the correct industry on your CRM system. That’s a basic step without which, this whole exercise is doomed.
In parallel, assign each industry a specific Coronovirus impact category:
Next, develop three customer reaction lanes based on the industry impact categories above.
Finish the segmentation process by applying two additional considerations:
- Level of customer engagement – For example: how often does each customer proactively reach out to you, attend scheduled meetings, attend events, or opens your emails.
- Level of solution consumption – For example, Frequency of usage, # of features and modules implemented, # of users using the system (vs licenses bought).
- Value sentiment – For example: What is the decision maker’s sentiment regarding the value they receive or think they can receive from your solutions. This is a subjective assessment that can usually be determined by your customer success manager (or account manager).
This exercise will help you not only with prioritizing your existing accounts. It would also help you provide a more accurate renewal forecast.
Do you agree with this approach? Did your team take a different methodology to determine your customer strategy since the pandemic started?
Contact us at CSM Practice if you have any questions about account segmentation strategies or other customer success topics.
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