Why Customer Segmentation

Customer segmentation is key to successful and scalable customer success management. 

It enables you to drive deeper insights of your customers and understand why some of them succeeded while others faded away. Your message becomes more effective when the recipient finds it relevant. And you are able to achieve more with less effort when you know how to prioritize your customer workflows and tasks.

Depending on the customer data you are able to collect, you can segment your customers by company size, industry, customer type, purchased products, MRR/ARR or the different lifecycle stages they are at. The goal is not to identify surface differences but the differences that actually affect:

  1. Their usage behavior, 

  2. The additional dollar value they are going to bring to your business, 

  3. The level of support you’ll provide, and 

  4. The non-monetary value they can bring to your business, referral, case studies etc. 

Although there can be many ways to segment your customers, we recommend you look at two simple ways to start with if you currently don’t have any account segmentation: tiers and lifecycle stages. 


Tiers can be used to classify your customers into different groups according to their size, expected support level and value to your business. It helps CSMs learn which accounts deserve the most time, resources, and attention.

In Freshsuccess, you can create specific churn alerts for the higher tier accounts so that CSMs can focus on saving the most valuable accounts. It can also be used in segmentation analysis to explore how different customer tiers perform in terms of user activity, product usage and value gained to help the CSMs strategize outreach to each tier with a more targeted approach. 

Analyzing product adoption and usage for tiers also sheds light on how certain features drive value (or less relevant) to a customer tier, which in turn helps marketing & sales make sense of the product tiers designed; the CSMs learn where the support is most needed, and product managers understand feature stickiness and uptake. 

Lifecycle Stages

In Customer Success, the purpose of the customer lifecycle is to define and communicate the stages through which a customer progresses when using your product, and the associated business processes your company uses to move the customer through this journey. 

If you want to understand how successful your customers are, it’s important to know which stage they are at throughout their entire lifecycle. For instance, someone who has just started using your product will likely behave entirely differently than a senior account who has been using the product for years.

Lifecycle stages are usually defined uniquely by your organization to help your CSMs track the status of an account, automate the account lifecycle management and perform targeted outreach accordingly.  Example lifecycle stages can include: trial -> onboarding -> adoption -> established -> advocate.

Customer Lists

Freshsuccess customer lists allow you to filter, view and track any segment of accounts or users based on specific account/user attributes and behaviors y. For example, you can create a list to help monitor upcoming renewal accounts with instant access to their current ARR, health score, contract expiration date, primary contact, latest customer interaction, and recent NPS; or a list of at-risk customers whose usage of a key feature is low and whose health is in red. 

You can save a list to be private (only viewable by you) or public (viewable by all users), and set it as the default view for your main Accounts and Users lists. Customer lists are dynamic and can be configured to auto-filter by the set of accounts assigned to the current CSM user. 

Commonly configured lists:

  1. New accounts created in the last week
  2. Onboarding accounts
  3. Accounts with renewal in the next 90 days
  4. At-risk accounts due to the lack of usage of key features
  5. Accounts with no interactions for 30 days
  6. Churned accounts in the last 60 days
  7. Accounts with unpaid/failed invoices