CRM Consulting
Customer Segmentation Strategy
Effective business development strategies most often begin with
customer segmentation. Typically for developing customer
segmentation, profitable customers and non-customers with similar
characteristics are grouped. These characteristics include
demographic as well as economic attributes which drives their
purchasing power.
Building blocks of an effective customer segmentation
strategy
The strategy grid will help you in making strategic
decisions for each of your customer segments:
- Go - when your strength in a customer segment is strong and the
segment is attractive.
- Keep - when your strength is strong but the attractiveness of
the segment is low.
- Investigate - if the segment is attractive but your strength is
low.
- Drop - if both segment attractiveness and your strength are
low.
However, organizations must figure out the most relevant
characterstic for their growth. Different customer segments
respond to different value propositions and require different
strategic approaches. When properly used, segmentation helps you
allocate resources throughout all levels of your organization to
create a value proposition that uniquely serves your target
customer groups.
Key Benefits
- Targeting: Identifying those customers most
likely to purchase and become your most profitable accounts.
- Messaging: Creating unique messaging,
marketing/ sales channels and contact cadence for each unique
customer segment.
- Loyalty & Retention: Focusing on your most
loyal customers and the drivers of customer retention and renewal
by customer segment.
- Next Logical Purchase: Predicting both what
and when customers will purchase next - and establishing timed
campaigns to intercept that purchase.
- Upsell/Cross-Sell: Understanding which
offerings are most likely to drive follow on purchase and expand
share of wallet.
Increasing Earnings from Customers
Effective segmentation drives revenue growth through increased
ability to meet customers' demands. Its greatest impact is on the
top line, growing the number of customers, the amount of sales per
customer and lifetime value of the customer.
How can we help?
Organizations paying attention to customer segmentation are
reaping rewards because it can contribute to success far beyond
determining its next marketing promotion. A comprehensive, dynamic,
multidimensional approach will help ensure organizations know their
customer and are equipped to fully take advantage of what they
learn about their customers, to serve them better. Identifying
the customer segments is like winning half the battle, the other
half is implementing the segmentation model within the organization
and articulating the strategy to pursue new markets.
Our segmentation and profiling solutions enable you to
understand the distinct needs, buying behavior and attitudes of
your customers. Using the insights from our segmentation analysis
you can make segment specific strategies that will enhance profit
per customer.
If you would like to know more about how we can help your
organization, .