Not all customers are the same. Some buy more often, some spend more, and some need extra attention to stay engaged. Zoho CRM’s Segmentation feature helps you categorize clients or accounts into clear buckets so you know exactly who deserves focus.
Segmentation lets you group clients based on specific rules, making it easier to:
Identify top-spending accounts that need nurturing.
Provide executives with curated lists of high-value clients.
Track which accounts are active, inactive, or at risk of leaving.
Unlock the power of customer segmentation in Zoho CRM using the RFM (Recency, Frequency, Monetary) model.
In this video, we delve into how Zoho CRM’s segmentation features can help you categorize your customers based on their purchasing behavior, enabling you to tailor your marketing strategies effectively.
Setting up RFM segmentation in Zoho CRM
Defining Recency, Frequency, and Monetary values
Creating dynamic customer segments
Utilizing segment labels for targeted marketing
Best practices for maintaining and updating segments
Go to Settings → Search “Segmentation.”
Click Get Started and name your segmentation.
Choose the module you want to work with (e.g., Accounts).
Decide if you want to apply segmentation to all records or filter by criteria like industry, territory, or location.
To measure value, you’ll connect segmentation to another module—commonly Opportunities. For example:
Use Stage = Closed Won to only count deals where revenue is confirmed.
Link opportunities back to accounts via the Account Name field.
Segmentation in Zoho CRM is powered by three key factors:
Recency – How long ago did the client last work with you? (e.g., based on Closing Date).
Frequency – How often do they engage? (e.g., the number of opportunities closed).
Monetary – How much have they spent? (e.g., the amount field in opportunities).
You can assign scores (e.g., 1–3 or 1–5) to reflect each factor. For example:
Recency: 3 if closed this quarter, 2 last quarter, 1 last year.
Frequency: 3 if five deals, 2 if three to four deals, 1 if one to two deals.
Monetary: Higher amounts = higher scores.
Together, these create a total score that helps you rank clients from your most valuable “VIPs” down to those who may need re-engagement.
Zoho CRM also applies labels automatically, such as:
Champion / VIP – High-value, active clients.
About to Sleep – Clients slowing down, needing outreach.
Cannot Lose Them – Accounts requiring urgent attention.
You can rename labels (e.g., “VIP” instead of “Champion”) or add your own custom categories.
After publishing, Zoho CRM updates scores every 24 hours.
Use filters in the Accounts module to find clients by score or label (e.g., show only VIPs).
On each account record, a Segmentation section displays the score and category details.
Segmentation takes the guesswork out of account management. Instead of treating all clients equally, you can focus efforts on:
Rewarding your best customers.
Re-engaging those at risk of leaving.
Giving managers the insights they need to act strategically.