Lead segmentation for purchasing

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hello everyone in this video we will focus on learning how to segment customers in our zoho crm account based on their buying pattern customers can be segmented based on various attributes like geography industry product preference revenue contribution and many more characteristics another important metric for segmentation is based on customers purchase patterns or what is commonly known as the rfm model of segmentation this can be measured with the help of three elements recency frequency monetary values and also can determine a customer's lifetime value the segmentation feature in zoho crm uses the rfm model and it can help businesses streamline their marketing expenditure identify the right product for the right customer and the right way to pitch it with rfm segmentation implemented in your crm account you can identify the best customers and engage with them for upselling and cross-selling opportunities additionally the rfm analysis provides the required data that will help in efficient targeted and personalized marketing efforts let's first understand the three values recency determines when a customer last purchased from you based on the recency score we can determine how active the customer is frequency determines the number of times a customer has made a purchase how frequent a customer purchases often depends on how well he uses the product or service offered monetary value determines how much a customer spends on your business it is an important indicator that helps in connecting the dots from the recency and frequency values in this video we will take the example of zilker retail a clothing and apparel store and try to understand how segmentation can work for them and how to set it up in zoho crm to begin let's first identify the time interval to measure the recency and the frequency metric this will vary for different businesses now for zilker retail a recent customer would be someone who had purchased something in the last six months and a customer who purchased as frequent as 12 times in the last six months is a frequent customer apart from that someone who spent more than a thousand dollars overall in the past six months is a customer who contributed a lot monetarily next we need to identify the crm modules that store customers data for instance the contacts module and the one that captures the deals and its details as in the deals module data in these modules are linked together with a field in this case the contact name field now let's see how this can be set up go to setup automation segmentation and let's create a new segment enter the segmentation name as customers in the usa here we need to choose the crm modules that store customers data for instance the customers module next we choose the module that captures the purchases made by the customers as in the deals module next select the linking field the field that links both the segmenting module and the contributing module all of the lookup fields that are available in both modules are listed here let's choose the contact name field for this example as all of the deals will have the contact information in it now moving on to the rfm fields entry we have to enter the basis for the rfm model of segmentation let's choose closing date as that would contain the information on the date and time when the deal was closed for frequency you can choose to determine based on count or by selecting any of the fields available if your business maintains a field in the crm account to maintain the deal counts that field can be selected for zilker let's choose count the monetary field would list all of the available revenue related fields and we will choose the amount field which will have the amount of the revenue that the customer contributed to zilker's business segmentation can be done for all of the records in the selected module or for records only matching a certain criteria since we want a segment of customers only from the u.s we will select the criteria as country is the united states of america click next and note that once you fill in the prerequisites you cannot edit the module you choose to segment and the contributing module in this page we will set up the criteria for the recency frequency and monetary fields the score range can be anything from 1 to for zilker retail let's have the range of one to five you can set the score either manually or automatically if you choose manual we provide the date range as the criteria for each score like this ing to zilker customers who purchased in the last six months are the most recent customers so let's set it up and give them the score of five for score five we choose the criteria closing date and choose the date manually that's 6 months before for score 4 the date range should be between 6 to 12 months for score 3 it should be between 12 to 18 months for score 2 and 1 the range should be between 18 to 24 months and above 24 months moving on to frequency the criteria for score five four three two and one are count is greater than twelve count is between eight and twelve count is between five and seven count is between two and four and count is less than 2 respectively now moving on to the monetary field the criteria for the scores 5 4 3 2 and 1 are amount greater than 1000 amount between 700 to 1000 amount between 300 to 700 amount between 100 to 300 and amount between 1 and 100. now let's see how automatic score assigning works the automatic calculation is available in the ultimate edition only the automatic or percentile based calculation intelligently sorts your records in a descending order and assigns the top score to your top percentile bracket the percentile brackets are decided by the rfm score range that you chose if the score range is 1 to 5 then there are 5 brackets if the score range is 1 to 4 there are 4 brackets etc for our retail example let's keep the range as one to five by default the percentile range would be such in a way that 80th to 100th percentile would have a score of five percentile range from 60 to 80 will have the score four forty to sixty as three twenty to forty percentile as two and zero to twenty percentile as one this can be edited because the percentile range can vary for different businesses for recency the percentile value is assigned based on the deal closing date if it is a recent date then the percentile value is higher and if the date is further away then the percentile value is lesser and hence the recency score is also less similarly for frequency automatically scores can be assigned based on the counts for example the number of times a customer has purchased when the count is higher the percentile bracket in which the record falls into is higher and the score is more as the count decreases the percentile value is reduced and the score is less the same goes for the monetary field based on the monetary field amount in the deals module the percentile is assigned when the amount is more the record falls into a higher percentile bracket and therefore the score is also high when the amount is less then the percentile bracket assigned is less and thereby the score is less once the criteria for recency frequency and monetary is set either automatically or manually we move on to the segment labels you can use the market standard to set the scores and labels or customize them as per your business based on the score ranges of the rfm-based segmentations customers are given segment labels these are the ones available by default and you can delete existing labels and add new ones by selecting add new label once you save the settings you're all set now in the customers module record details page details on the segmentation their segment label their recency frequency and monetary scores are automatically added and you can also view history of the record which shows the different segment labels that were once assigned to the record of different dates apart from that you can filter records based on the segment label and the rfm scores from here you can enter the criteria and view records matching a certain criteria for example those with a frequency count of above five note that when the contributing module is the deals module this segmentation occurs for customers only when the deals associated with them are closed or closed one or any stage probability of one hundred percent this is how segmentation works and based on this businesses can determine the purchasing behavior of customers and adjust the marketing strategy to sell the right products or service to the right customers at the right time it can be very powerful tool for post-purchase segmentation upselling and to retain existing customers thank you for watching this video for more resources on zoho crm please visit .zoho.com crm resources