Segmenting from Customer Interviews
Customer interviews are really important.As soon as you start to collect data about your customers, you want somewhere to put it.And I have a template for you as part of this lesson.And you can download that.Take a look at this little piece of it, though.This is where we have various descriptions of different types of customers.And then you start to plug in the segments of your customers.Those different types of customers, their descriptions line up with a place that they are in their customer journey.So your segments could be in a customer journey.In this particular example, they could be coming in through different channels.There are lots of ways to segment your customers.For these purposes, we will talk about based on the customer’s journey.And that is your customers who are, all the way from your champions, your very best customers to customers you have lost.In order to start talking about segments, there are two things we need to cover.
And one is Buyer Attributes, the other is Behaviors.So these two big B’s.Buyer attributes are the actual information.So their name, what company they work with or for, the revenue of that company, the size of the company, the number of employees that they have, the number of direct reports that they have, the industry that they’re in.Those are all hard factual data pieces.The other thing you want to look at is behaviors.And so this is data you’re collecting both quantitatively and qualitatively.
Where are they visiting on the website?
Which pages do they look at?
What emails have they opened?
What features of the product do they use?
Do they send in a lot of support tickets?
How often do they go to the website?
Have they made any recent purchases that relate to your product?
All of that data gives you a big picture of your various customer segments.When you start to collect and tie the attributes together with behaviors, you start to see different segments and how they relate to your product.So maybe all of your smaller customers, the smaller-sized companies, something that relates to them is that they all have started a free trial and used one particular feature, but never spent time setting up other features and their trial timed out.Maybe that’s true for companies with one to two employees.And then, medium-sized companies, bigger businesses are getting a paid account, using a large set of the features, and sticking around for a really long time, sending in a good number of support tickets along the way, but they are maybe your longer-term retention.And larger companies are maybe signing up right away, converting right away, signing up for an annual plan.And they are using a good number of the features, but they’re pretty silent as far as support tickets go.And maybe they turn out after six months.So you start to see patterns, right?As you gather all this data, you can start to see where, hmm some of these behaviors relate directly back to a set number of buyer attributes.And then we can start to look at predictive patterns.So we can say, okay this is a medium-sized company coming in, the very first feature that they used, that the majority of this size company uses this feature and we want to make sure that we highlight this feature to keep them engaged and keep them moving through the product.What is relating to the turn in each category and how can we avoid that?You can see this grid of various different segments of customers and where they might relate to each other and the breakdown, really.And you probably see a very similar breakdown in your own customer segments.Typically, champions are a smaller group.Those hibernating or about to sleep are smaller groups.Those loyal potential loyalists and at risktend to be larger groups.So you’ll want to take a look at all your different segmentsand start to understand how their buyer attributes relateto their behaviors.Jimmy Daly, who’s the director of marketing at Animalshas a great example that he shared on a blogrecently about his experience signing up for TaskRabbit.He checked it out but he never actually used the service.So he said until he uses the service, he is in limbo.He goes into this segment of users who has expressedinterest, but never actually did anything with it.Those users, Jimmy says we should celebrateusers in limbo.Hey says a signup is a strong indicator that a personhas a real interest in your product.Never assume that people aren’t the right fit as customersuntil it’s been proven.So, that’s where segments come in.A sleeping customer does not mean that they’renot a right fit.It means that we need to improveour communication with them.You can use retention emails.Typically with sleeping customers, you don’t want to usein-app messages because they’re not around.But when you start to break out these segments,you know how to communicate with them.Everyone knows that you have a wide variety of customersand you’re not going to be able to please all of them.Of course, there are some who aren’t great fits,but it doesn’t mean that they all are,even if they fall into different categories.So you should always be looking for waysto improve your service in your product.There is great value in going back to thosecustomer interviews and getting feedback from yourcanceled customers or your limbo customers.Talking to them, even when it’s hard to get thoseinterviews in the first place.Sometimes that’s the most valuable.Without that information, you can run intosome really big problems.If you aren’t segmenting your customers, you might notrealize that you need to takea more high touch measurewith your bigger accounts.They need more hand-holding.And in those interviews, you’ve learned that.Your smaller accounts need as much automation as possible.You can use automation tools, like email marketing toolsor an in-app messaging tool,intercom user list,customer io, there’s a lot of options for tools out there.When you use those to reach out to your customersin-app and through email, you are creating a foundationof automation that you can build onfor all of your different segments.And all of that, all those different communication piecescome together to create more of thoseloyal and champion customers,as you start to segment them downand understand their needs and their individualforms of communication.Of course, when you’re automating, you want to lookat messaging based on usage and behavior patterns.So let’s say a customer has used part of your productbut they haven’t gone on to use another feature.This is where you might want to send an in-app messageand then maybe wait a couple of daysand send it as an email.And you’re going to say something like, hey we noticed thatyou used our publishing feature, but we noticed youhaven’t tried our social media feature.When you use our social media feature,you are going to see this valueand get these following benefitsfrom this feature.If you want to learn more about it,here’s a quick explainer video.Right, so you’re leading with a value and understandingthe benefits of that particular feature from a customerperspective, not just shoving it down their faces.But helping them see wherethose value pieces come inand where it’s creating part of their overall experience.Of course, that value comes in of you understandwhat kind of customer they are.When you are looking at your various segmentsyou need both quantitative and qualitative datato get your whole 360 vision of your customers.Segmenting your customersinforms your customer retention topics.It informs your messaging.It informs how you sell to them.It informs future features that you build.Having the segments of your customers clearly definedand understanding who fitsinto each segment and howyou speak to them will change the waythat you retain your customers long-term.
We covered what you need to know about segmenting. We talked about how to identify cornerstone moments in onboarding and we talked about aligning in-app messaging with email messaging and your overall communication. My assignment for you is this to define your customer segment based on the journey. So just like the parts I showed you, as they move through the customer journey, define your own customer segments and who fits into each segment type based on your interviews. In order to do that, you’re probably going to want to download the customer segment template and use it to relate your defined segments to all of your customer interview qualitative data.So your resource is the customersegment qualitative data tracker.You can grab that, use it as an ongoing resourcein your business.It’s a living, breathing document.So make the most use of that as possible.Keep it updated every time you go to do new interviews.And develop your segments now and long-termfor better retention for everyone.To get the most value out of your customer segmentation,you want it to be both descriptive and predictive.To get a holistic view of your customer segmentsand their ultimate success, your going to want to useboth your behavioral, or quantitative data, likepurchase behavior, transactional data, and mix in someexternal or qualitative data, like demographics learnedin interviews, or personas developed from surveys.Those insights will inform your retention efforts.Including messaging, sales, product development.And they can be used to better predict the futureof your company.You didn’t know that better retention optimization meantyou’d be able to see into the future, did you?Told you this was good stuff.In the next lesson, we’re going to talk aboutgetting past that honeymoon phase,you know the very beginning where it’s all great,building habits with your product,gathering ongoing feedback,and building referral networks with your customers.These are some of my favorite things to dive intoand I can’t wait to see you there.
Right now, I want to talk throughthose four steps of the Hook Model.They are trigger, action, variable reward and investment.Nir says, through consecutive Hook cycles,successful products reach their ultimate goalof unprompted user engagement,bringing users back repeatedly without depending on costly advertising or aggressive messaging.I don’t know about you,but that sounds pretty exciting to me.So trigger; trigger’s the first step of the Hook Model.It makes sense.We need something that kicks it off.It’s a way that the motion is in progress, right.So we get the ball rolling with the trigger.Triggers are, there’s two types of triggers,external and internal.A really strong marketing campaignstarts with external trigger,so maybe it’s a push notificationon an app, for example.So let’s say that you have an app on your phoneand it is about, it’s a yoga class app,and you really love doing yoga.It’s something that you’re passionate aboutAnd it’s the weekend, and that app sends youa push notification that says,hey, your favorite local studio is having a special today.There’s a free class, or bring a friend for free,or a special teacher in town.You, because you’re interested in yoga,because you have this app on your phone,you’re more likely to find out by clicking and going into the app.