The Hidden Problem in Your CRM
If you’re sending the same campaign to every customer, you’re committing one of the most damaging CRM mistakes an SME can make: no segmentation.
On the surface, it feels efficient; one campaign, one send, everyone gets it. But here’s the truth: your customers are not all the same. A first-time buyer has different needs than a VIP who’s been with you for years. Treating them the same will cost you sales, erode trust, and waste marketing spend.
Why It Hurts Sales
Lack of segmentation means:
- Irrelevant messaging → customers tune out, open rates drop.
- Missed revenue opportunities → VIPs aren’t incentivised to spend more, and at-risk customers aren’t given a reason to come back.
- Higher churn rates → people disengage when your messages don’t speak to their needs.
In today’s competitive market, personalisation isn’t a nice-to-have, it’s the baseline expectation.
So… Here is how to Fix It
- Segment by RFM (Recency, Frequency, Monetary value)
- Recency: When was their last purchase?
- Frequency: How often do they buy?
- Monetary: How much do they spend?
- Create 3 Core Segments to Start:
- VIPs: High spenders who buy frequently.
- High Potential: Medium spenders with room to grow.
- At-Risk: Haven’t purchased recently and are disengaging.
- Tailor Your Campaigns:
- VIPs: Exclusive previews, early access, loyalty perks.
- High Potential: Upsells, product bundles, targeted offers.
- At-Risk: Win-back incentives, personal check-ins, “We miss you” campaigns.
- Automate the Process:
Use your CRM’s automation features to dynamically move customers between segments based on behaviour, so your campaigns always stay relevant.
Complex Case Study
We worked with an eCommerce fashion brand that had a single monthly email newsletter for everyone. After introducing RFM segmentation:
- VIPs received exclusive previews and loyalty rewards.
- At-risk customers got targeted win-back campaigns.
- High-potential buyers were encouraged with upsells and personalised recommendations.
The result? VIP purchase frequency rose by 18% and lapsed customer reactivation improved by 27% within just three months without increasing ad spend.
