What variables are you looking at to segment customers?

Userlevel 6
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  • Shoshin
  • 314 replies
While at Pulse, my team and I learned that we need to add a segment to our customers. We currently only have Premium and Standard, where Premium is based on if the customer purchased our "Premium Support" offering. This means we have a wide variety of customer types in the "Standard" model.

We are now working on implementing a new segmentation strategy to separate "Standard" into two groups: Tech Touch and Mid Touch (kudos to the presentation on Customer Communities, forget the presenter names). 

So far, here is what we are looking at for factors:
  • License volume
  • License volume
  • # of products owned
  • Customer type (a function of spend per customer)
  • Strategic value
Our hope is that this will allow us to tailor our engagement strategy better, focus our CSM team on our higher-valued customers, while maintaining an acceptable level of engagement with the tech touch group.

Looking for guidance or other ideas from the community!


3 replies

Userlevel 6
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You could look at usage and segment to "Power Users." Another thing to consider would be how much you customer makes in annual revenue.
I have 3 segments initially - where i identify high, low and tech touch. However - that is only segmentation based on ARR. I have assigned some accounts to a higher touch, even if from an ARR standpoint they fall low - based on the following factors: # of products they utilize and # of users/companies(location) they have, as well as their advocacy level (i.e. if they have continued to be a reference and good solid customer - we hold them at the same level of a higher touch/tier 1 account). 
Userlevel 6
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Thanks all! Always appreciate the insights. I like the "Power Users" concept, just not sure how we'd implement it yet. #NewChallenges