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.
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.
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.