{"id":1774,"date":"2019-08-19T14:51:58","date_gmt":"2019-08-19T18:51:58","guid":{"rendered":"http:\/\/blog3.canny.io\/wordpress\/?p=1774"},"modified":"2024-04-19T17:00:40","modified_gmt":"2024-04-19T21:00:40","slug":"user-segmentation","status":"publish","type":"post","link":"https:\/\/canny.io\/blog\/user-segmentation\/","title":{"rendered":"Canny best practices: user segmentation"},"content":{"rendered":"<p>At Canny, we strive to make the end-user experience as simple as possible. This is to ensure your team gets as much feedback as possible.<\/p>\n<p>However, you <a href=\"https:\/\/canny.io\/blog\/faster-horse-customer-feedback\/\">shouldn&#8217;t just build what has the most votes<\/a>. There&#8217;s other information you should factor in when planning your roadmap.<\/p>\n<p>One of the most important things is who the votes are coming from. Not all users are created equal. For example, you probably care more about paying customers than freemium customers.<\/p>\n<p>Ask yourself which metrics you&#8217;re focused on right now. Identifying your key metrics translates into different user segments you can focus on.<\/p>\n<p>You can segment customers by different traits:<\/p>\n<ul>\n<li>Customer status (free, paying, churned)<\/li>\n<li>Business type (consumer, B2B, etc.)<\/li>\n<li>Role (sales, engineer, founder, etc.)<\/li>\n<li>Industry<\/li>\n<li>Company size<\/li>\n<li>Number of web sessions<\/li>\n<li>Location<\/li>\n<li>Some other metric unique to your product<\/li>\n<\/ul>\n<p>This customer data that something you already have. We fill in some of the blanks with <a href=\"https:\/\/clearbit.com\/\">Clearbit<\/a>. You can gain some incredible insights by combining user segments with feedback data.<\/p>\n<p>You may find that your top voted post overall might be a lot less popular depending on the segment.<\/p>\n<p>Here&#8217;s how user segmentation in customer feedback can help you reach your goals.<\/p>\n<h2>New Customers<\/h2>\n<p>Growth is probably at the top of our minds. How do you attract more qualified leads in a profitable way?<\/p>\n<p>It&#8217;s likely that you lost several leads due to an issue or lack of some feature. Some of them have given you feedback. This is your chance to recover some of that.<\/p>\n<h4>Your target audience<\/h4>\n<p>The key here is identifying your target audience. Recall your buyer personas and see what are the important traits. Are your customers mostly B2B? Are they all similarly located? Are they SMBs or enterprises?<\/p>\n<p>With Canny user segmentation, you can create segments that combine multiple traits.<\/p>\n<p>For example:<\/p>\n<ul>\n<li>B2B businesses in North America<\/li>\n<li>E-commerce stores with less than 50 employees<\/li>\n<li>Support agents at B2C companies<\/li>\n<\/ul>\n<p>You can enhance the segment even further with engagement metrics. That way you can target people who are active in your product (e.g. companies with more than 20 web sessions).<\/p>\n<p>We identified the traits of our target customers and set them to &#8220;qualified&#8221; in our database. This enables us to segment by &#8220;qualified: true&#8221;.<\/p>\n<figure id=\"attachment_1780\" aria-describedby=\"caption-attachment-1780\" style=\"width: 1400px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"border wp-image-1780 size-full\" src=\"https:\/\/canny.io\/blog\/wp-content\/uploads\/2019\/08\/segment-builder.avif\" alt=\"Canny segment builder\" width=\"1400\" height=\"1000\" srcset=\"https:\/\/canny.io\/blog\/wp-content\/uploads\/2019\/08\/segment-builder.avif 1400w, https:\/\/canny.io\/blog\/wp-content\/uploads\/2019\/08\/segment-builder-300x214.avif 300w, https:\/\/canny.io\/blog\/wp-content\/uploads\/2019\/08\/segment-builder-768x549.avif 768w, https:\/\/canny.io\/blog\/wp-content\/uploads\/2019\/08\/segment-builder-168x120.avif 168w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><figcaption id=\"caption-attachment-1780\" class=\"wp-caption-text\">Build segments in Canny<\/figcaption><\/figure>\n<p>Now, filter your feedback by the segment with those important traits. The list of ideas you see has great potential to attract new customers.<\/p>\n<h2>Retention<\/h2>\n<p>You work so hard to acquire new customers. Make sure you&#8217;re doing what you can to keep them.<\/p>\n<div class=\"callout\">TIP: Look in particular for features that would make your product &#8220;stickier&#8221;. Think: features that encourage users to continue coming back into your product.<\/div>\n<h4>Paying customers<\/h4>\n<p>This is a great one to start with, especially if you have a free plan. People paying less will greatly outnumber your high-value customers. Because of that, your feedback data is likely skewed towards your low-value customers.<\/p>\n<p>Keep an eye on what requests are popular among your paying customers.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-3489 size-full\" src=\"https:\/\/canny.io\/blog\/wp-content\/uploads\/2022\/02\/smaller-gif-test.gif\" alt=\"Segmentation in action\" width=\"1200\" height=\"578\"><\/p>\n<p>Continuing to provide them value will increase the chances of them sticking with you.<\/p>\n<h4>Churned customers<\/h4>\n<p>For us SaaS companies, it&#8217;s important that we keep churn as low as possible. There might be some commonalities in why people are churning. Segment your feedback by churned customers to see if there are any quick wins to address.<\/p>\n<p>When our customers churn, we always ask them why. If the reason was something in our control, we add it to Canny. You may even <a href=\"https:\/\/canny.io\/blog\/how-to-use-customer-feedback-to-win-back-lost-customers\/\"  data-wpil-monitor-id=\"67\">win some of them back<\/a> by building their request in the future.<\/p>\n<h2>Expansion Revenue \/ Upsells<\/h2>\n<p>New customers are great but acquisition is very expensive. Upsells are about 4x more affordable. A good benchmark for expansion revenue is around 30% of your total revenue.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full\" src=\"https:\/\/www.priceintelligently.com\/hs-fs\/hubfs\/PI-GraphSlides-v1upsell.001.jpeg?width=1280&amp;name=PI-GraphSlides-v1upsell.001.jpeg\" alt=\"Graph showing acquisition is 4x more expensive than upsells\" width=\"1280\" height=\"720\"><\/p>\n<h4>Paying customers<\/h4>\n<p>What big-ticket items are your paying customers asking for? What areas can you focus on to provide more value to them?<\/p>\n<p>If you can identify and execute on some key projects, you&#8217;ll have a much easier time doing upsells. Expansion revenue is key to increasing your ARPC (Average Revenue Per Customer).<\/p>\n<h2>NPS (Net Promoter Score)<\/h2>\n<p>NPS is a good metric for measuring customer satisfaction. We&#8217;ve written about the <a href=\"https:\/\/canny.io\/blog\/what-is-nps\/\">basics of NPS<\/a> and action step for each group.<\/p>\n<p>With user segmentation you can uncover ideas with the potential to boost your NPS.<\/p>\n<div class=\"callout\">TIP: When you run NPS surveys, you can take the qualitative feedback you get and input that into Canny. Having everything in one place ensures you&#8217;ll have an accurate view of all your feedback.<\/div>\n<h4>Current customers by NPS<\/h4>\n<p>For example, create a segment with all your &#8220;passives&#8221; \u2013 people who gave you a 7 or 8. Apply that filter on you feedback and you get a list of ideas to push these customers into &#8220;promoters&#8221;.<\/p>\n<div class=\"callout\">TIP: There are many different factors that influence your NPS. SurveyMonkey did <a href=\"https:\/\/www.surveymonkey.com\/mp\/factors-that-impact-software-company-nps\/\">a study<\/a> where they identified four factors that affect NPS the most: reliability, security, integrations, and a functional user interface. Look out for requests that specifically fall into any of these categories.<\/div>\n<h2>Engagement Metrics<\/h2>\n<p>Engaged users are the ones actively using your product. Strong user engagement means you&#8217;re solving a problem for them in a significant way.<\/p>\n<h4>Inactive users<\/h4>\n<p>To increase engagement, we&#8217;ll take a look at feedback from people who are not engaged.<\/p>\n<p>Engagement metrics will differ from company to company. Think about the aspects of your product that signifies an active user. Merely logging in probably isn&#8217;t significant enough.<\/p>\n<p>Consider:<\/p>\n<ul>\n<li>Engagement with specific features<\/li>\n<li>How often people are performing certain actions<\/li>\n<li>Checkpoints in their customer journey<\/li>\n<\/ul>\n<p>Now that you know who you consider an active user, you can create a segment for inactive users. Filter your feedback with this new segment to see what your team can work on to increase engagement.<\/p>\n<h2>Find the strongest signals with user segmentation<\/h2>\n<p>As product managers, data is plentiful. Input is coming at you from all sides whether it&#8217;s qualitative or quantitative. As your customer base grows, your challenge is filtering out the signal from the noise.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"gif aligncenter\" src=\"https:\/\/media.giphy.com\/media\/l2JefZrpEXqlvNjsA\/source.gif\" alt=\"\" width=\"480\" height=\"366\"><\/p>\n<p>As you can see, there are many ways you can slice and dice your feedback data. Segmenting your user feedback helps you decide how to best invest your resources.<\/p>\n<p>As we all know, growth is the name of the game and you won&#8217;t get there without focus and discipline. Good luck!<\/p>\n<p><!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa\" class=\"hs-cta-node hs-cta-e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/5705808\/e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" id=\"hs-cta-img-e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/5705808\/e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa.png\" alt=\"Canny free trial\" width=\"1300\" height=\"642\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(5705808, 'e1d55d08-a2cf-44a3-a9a0-f3ca5ff21dfa', {\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Not all users are created equal. User segmentation allows you to look at feedback based on your most important user groups.<\/p>\n","protected":false},"author":2,"featured_media":1775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-1774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-canny-best-practices"],"aioseo_notices":[],"modified_by":"Maria Vasserman","_links":{"self":[{"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/posts\/1774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/comments?post=1774"}],"version-history":[{"count":15,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/posts\/1774\/revisions"}],"predecessor-version":[{"id":6729,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/posts\/1774\/revisions\/6729"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/media\/1775"}],"wp:attachment":[{"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/media?parent=1774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/categories?post=1774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canny.io\/blog\/wp-json\/wp\/v2\/tags?post=1774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}