Customer segmentation refers to the strategy of dividing customers into groups based on characteristics to better tailor messaging and communicate to each audience. These characteristics might include type of debt, amount of debt or location.
It’s important for collections departments to segment customers because they have complex differences. Each customer is in a different collections stage and a unique financial situation. Segmenting resolves obligations in a way that resonates with customers while improving collections rates.
Continue reading to learn the four steps to implementing customer segmentation at your organization.