Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately.
Segmentation allows marketers to better tailor their marketing efforts to various audience subsets. Those efforts can relate to both communications and product development. Specifically, segmentation helps a company:
Create and communicate targeted marketing messages that will resonate with specific groups of customers, but not with others (who will receive messages tailored to their needs and interests, instead).
Select the best communication channel for the segment, which might be email, social media posts, radio advertising, or another approach, depending on the segment.
Identify ways to improve products or new product or service opportunities.
Establish better customer relationships.
Test pricing options.
Focus on the most profitable customers.
Improve customer service.
Upsell and cross-sell other products and services.
Need to present your business conversion strategy, our content ready Customer Acquisition PowerPoint Presentation Slides can help you out. Consumer acquisitions is the process of convincing the consumer to buy your product or service, keeping this in mind our team have designed this customer retention strategy complete deck which includes professional slides like segmentation and targeting, market sizing, target prospects, understanding consumer needs, acquisition strategies, demand creation strategy, sales force automation, sales funnel, consumer lifecycle, user lead framework, lead generation strategy, lead nurturing lifecycle, lead scoring, lead conversion process, acquisition channels/tools, cost by channel, client referrals, etc. Acquiring new customer is part of marketing process so it also covers PPT slides on marketing as well such as social media marketing, marketing campaigns and promotions, marketing reach by channels, marketing roadmap, word of mouth marketing, marketing growth strategy, idea acquisition cost model, customer retention strategies, benefits and impacts, customer loyalty lifecycle, loyalty program dashboard, customer satisfaction and feedback, key metrics, Ansoff matrix for growth strategy, etc. Download this customer lifecycle PPT design to boost your business sales. Our Customer Acquisition PowerPoint Presentation Slides are like a backpack. They contain all the essentials.
What is customer segmentation and what are some best practices around segmenting your mobile app users? This Slideshare presents 4 best practices for effectively grouping your customers into actionable segments.
To know more, visit: https://clevertap.com/blog/customer-segmentation-examples-for-better-mobile-marketing/
RFM stands for Recency, Frequency, and Monetary value, each corresponding to some key customer trait. These RFM metrics are important indicators of a customer’s behavior because frequency and monetary value affects a customer’s lifetime value, and recency affects retention, a measure of engagement.
RFM analysis helps marketers find answers to the following questions:
Who are your best customers?
Which of your customers could contribute to your churn rate?
Who has the potential to become valuable customers?
Which of your customers can be retained?
Which of your customers are most likely to respond to engagement campaigns?
Let's find out more with the help of Slideshare.
RFM Segmentation is the easiest and most frequently used form of database segmentation. It is based on three key metrics: Recency, Frequency and Monetary Value of customer activity. RFM is often used with transactional history in e-commerce, but can also work for Social Media interactions, online gaming or discussion boards. Based on calculated segments a marketer can prepare cross-sell, up-sell, retention and reactivation capampaigns. This deck provides a simple introduction to the RFM Segmentation methodology.
Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately.
Segmentation allows marketers to better tailor their marketing efforts to various audience subsets. Those efforts can relate to both communications and product development. Specifically, segmentation helps a company:
Create and communicate targeted marketing messages that will resonate with specific groups of customers, but not with others (who will receive messages tailored to their needs and interests, instead).
Select the best communication channel for the segment, which might be email, social media posts, radio advertising, or another approach, depending on the segment.
Identify ways to improve products or new product or service opportunities.
Establish better customer relationships.
Test pricing options.
Focus on the most profitable customers.
Improve customer service.
Upsell and cross-sell other products and services.
Need to present your business conversion strategy, our content ready Customer Acquisition PowerPoint Presentation Slides can help you out. Consumer acquisitions is the process of convincing the consumer to buy your product or service, keeping this in mind our team have designed this customer retention strategy complete deck which includes professional slides like segmentation and targeting, market sizing, target prospects, understanding consumer needs, acquisition strategies, demand creation strategy, sales force automation, sales funnel, consumer lifecycle, user lead framework, lead generation strategy, lead nurturing lifecycle, lead scoring, lead conversion process, acquisition channels/tools, cost by channel, client referrals, etc. Acquiring new customer is part of marketing process so it also covers PPT slides on marketing as well such as social media marketing, marketing campaigns and promotions, marketing reach by channels, marketing roadmap, word of mouth marketing, marketing growth strategy, idea acquisition cost model, customer retention strategies, benefits and impacts, customer loyalty lifecycle, loyalty program dashboard, customer satisfaction and feedback, key metrics, Ansoff matrix for growth strategy, etc. Download this customer lifecycle PPT design to boost your business sales. Our Customer Acquisition PowerPoint Presentation Slides are like a backpack. They contain all the essentials.
What is customer segmentation and what are some best practices around segmenting your mobile app users? This Slideshare presents 4 best practices for effectively grouping your customers into actionable segments.
To know more, visit: https://clevertap.com/blog/customer-segmentation-examples-for-better-mobile-marketing/
RFM stands for Recency, Frequency, and Monetary value, each corresponding to some key customer trait. These RFM metrics are important indicators of a customer’s behavior because frequency and monetary value affects a customer’s lifetime value, and recency affects retention, a measure of engagement.
RFM analysis helps marketers find answers to the following questions:
Who are your best customers?
Which of your customers could contribute to your churn rate?
Who has the potential to become valuable customers?
Which of your customers can be retained?
Which of your customers are most likely to respond to engagement campaigns?
Let's find out more with the help of Slideshare.
RFM Segmentation is the easiest and most frequently used form of database segmentation. It is based on three key metrics: Recency, Frequency and Monetary Value of customer activity. RFM is often used with transactional history in e-commerce, but can also work for Social Media interactions, online gaming or discussion boards. Based on calculated segments a marketer can prepare cross-sell, up-sell, retention and reactivation capampaigns. This deck provides a simple introduction to the RFM Segmentation methodology.
Efficient customer segmentation in Google Analytics (Blueffect 2013 Warsaw, Poland) - examples and best practices of accurate data analysis and advanced segmentation principles in order to improve revenues of your business.
- What makes you wrongly evaluate marketing campaigns: do you know, what is the real conversion rate of your website?
- How to prioritize content sections of an e-commerce website.
- What customer segments and cohorts are useful.
Customer Segmentation for Retention StrategyMelody Ucros
IE Business School
Marketing Intelligence Project by Group F:
Melody Ucros
Jina Kim
Andrea Blasioli
Adedeji Rodemade
Fergus Buckey
Alex Kyalo
Louis Rampignon
Data Source: http://archive.ics.uci.edu/ml/datasets/online+retail
Fundamentals and advanced concepts in customer segmentation. CLV (customer lifetime value) and specific implications in Telecoms. Approaches in operational deployment of customer segmentation.
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage. The talk is aimed at technical/product founders plus their sales, marketing & product executives who are responsible for the go-to-market strategy for their company.
The presentation covers elements of a GTM plan, what makes it disruptive and how does one measure it. The presentation was used at the NASSCOM Product Conclave in Cochin held on 14 Dec 2016 by Sunder Madakshira.
Use this modern go-to-market framework to define the activities required to successfully build market-driven products & services that customers will accept.
This deck consists of total of thirty four slides. It has PPT slides highlighting important topics of Customer Journey Powerpoint Presentation Slides. This deck comprises of amazing visuals with thoroughly researched content. Each template is well crafted and designed by our PowerPoint experts. Our designers have included all the necessary PowerPoint layouts in this deck. From icons to graphs, this PPT deck has it all. The best part is that these templates are easily customizable. Just click the DOWNLOAD button shown below. Edit the colour, text, font size, add or delete the content as per the requirement. Download this deck now and engage your audience with this ready made presentation.
The Go-To-Market framework is a related set of activities and processes that connect the company’s product strategy to the customer experience. The Go-To-Market framework is cross-functional, spanning product management, product marketing, and sales. It is a strategy and requires operational efficiency.
Consideration and implementation of a successful marketing automation strategy presented by Andrew Wilson, Freelance Digital Marketing Automation & Project Manager
Sales & Marketing Development Plan - a template for the CROFan Foundry
This playbook helps you build, measure, learn and adjust your sales and marketing leadership plan. It addresses many topics under Sales and Distribution, Customer Development, Strategic Marketing Frameworks and Integrated marketing Plans, including sample metrics for measuring progress.
How to Create a Customer Segmentation ModelMark Haubert
Are your sales and marketing teams focused on the right customers? Learn how to define your Ideal Customer Criteria, create a Customer Segmentation Model, identify your Key Accounts and focus your teams on customers with the greatest potential for growth.
Efficient customer segmentation in Google Analytics (Blueffect 2013 Warsaw, Poland) - examples and best practices of accurate data analysis and advanced segmentation principles in order to improve revenues of your business.
- What makes you wrongly evaluate marketing campaigns: do you know, what is the real conversion rate of your website?
- How to prioritize content sections of an e-commerce website.
- What customer segments and cohorts are useful.
Customer Segmentation for Retention StrategyMelody Ucros
IE Business School
Marketing Intelligence Project by Group F:
Melody Ucros
Jina Kim
Andrea Blasioli
Adedeji Rodemade
Fergus Buckey
Alex Kyalo
Louis Rampignon
Data Source: http://archive.ics.uci.edu/ml/datasets/online+retail
Fundamentals and advanced concepts in customer segmentation. CLV (customer lifetime value) and specific implications in Telecoms. Approaches in operational deployment of customer segmentation.
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage. The talk is aimed at technical/product founders plus their sales, marketing & product executives who are responsible for the go-to-market strategy for their company.
The presentation covers elements of a GTM plan, what makes it disruptive and how does one measure it. The presentation was used at the NASSCOM Product Conclave in Cochin held on 14 Dec 2016 by Sunder Madakshira.
Use this modern go-to-market framework to define the activities required to successfully build market-driven products & services that customers will accept.
This deck consists of total of thirty four slides. It has PPT slides highlighting important topics of Customer Journey Powerpoint Presentation Slides. This deck comprises of amazing visuals with thoroughly researched content. Each template is well crafted and designed by our PowerPoint experts. Our designers have included all the necessary PowerPoint layouts in this deck. From icons to graphs, this PPT deck has it all. The best part is that these templates are easily customizable. Just click the DOWNLOAD button shown below. Edit the colour, text, font size, add or delete the content as per the requirement. Download this deck now and engage your audience with this ready made presentation.
The Go-To-Market framework is a related set of activities and processes that connect the company’s product strategy to the customer experience. The Go-To-Market framework is cross-functional, spanning product management, product marketing, and sales. It is a strategy and requires operational efficiency.
Consideration and implementation of a successful marketing automation strategy presented by Andrew Wilson, Freelance Digital Marketing Automation & Project Manager
Sales & Marketing Development Plan - a template for the CROFan Foundry
This playbook helps you build, measure, learn and adjust your sales and marketing leadership plan. It addresses many topics under Sales and Distribution, Customer Development, Strategic Marketing Frameworks and Integrated marketing Plans, including sample metrics for measuring progress.
How to Create a Customer Segmentation ModelMark Haubert
Are your sales and marketing teams focused on the right customers? Learn how to define your Ideal Customer Criteria, create a Customer Segmentation Model, identify your Key Accounts and focus your teams on customers with the greatest potential for growth.
Crossing the Digital Chasm - Applying Advanced Analytics in acquiring, nurtur...Vishwa Kolla
We are at a point of inflection of embedding Advanced Analytics everywhere.
If you are interested in learning about:
1) Why should we cross the Cigital Chasm
2) Which of the areas should one focus
3) Which of the problems should one focus on
4) What are the opportunities / challenges / mitigations
then this is for you.
Make Better CX Decisions with Data Science | inQuba & Servian [LEVEL UP CX SU...Antony Adelaar
On the 28th October 2020 inQuba & Servian hosted the 2nd Level Up CX Summit webinar on Making Better Decisions & Converting Customers with Data Science.
Speakers: Alasdair Douglas (Servian), Michael Renzon (inQuba)
Summary:
The key to what customers value is hidden in their data – your competitive advantage. Real customer journeys are data-driven, built by customer data, behavioural data, transactional data and business data. By joining the dots with AI and collecting customer feedback, the CX professional is able to discover what customers are doing, what their emotional context is, and where journeys can be orchestrated for success. Now more than ever, business wants answers backed by data.
Recording here: https://youtu.be/Oh6hcQMhlSk
Today the “Supply Chain” is in a quandary. On the one hand it can be argued that it is ‘coming-of-age’, and seen as a profession... on the other hand, we are being inundated with trends pointing to the growing scarcity of Supply Chain Leaders.
Customer Intelligence (also known as ‘Customer Analytics’ or ‘Customer Insight’) enables your marketing
experts to design and apply intelligent promotions or programs or any other special ‘treatment’ on the most
suitable customers, through the right channel and with the best timing effect, enabling ‘optimization’ of
customer interaction, significant improvement of customer experience and higher satisfaction levels
Best practice approach for PLM, Product Supply and SourcingQualsys Ltd
Buy-in presentation for PLM professionals who want an electronic management system. Download this presentation and use it for your own business case if you need better control over the products you supply, product sourcing and a more agile approach to product life cycle management. EQMS software can help capture data throughout the product lifecycle.
The Death of the Business Plan EODF Amsterdam, 2014Chris Catto
The Death of the Business Plan and Birth of the Statement of Strategic Modality. Power point version as presented at European Organisation Design Forum, Amsterdam, 17 October 2014.
Cases & References
Flight Centre - Mandy Johnson
Handelsbanken - Jan Wallander's Way
Southwest Airlines - Values Based Organisations
Kyocera - Kazuo Inamori, Amoeba Management
Organize for Complexity, Niels Pflaeging
Rims 2019 future proofing your organization-finalMaeva J. Charles
Business is no longer “business as usual”, non-financial risks matter as it can be evidenced by the number of scandals surrounding corporates. In this modern age where corporate accountability is at the forefront, organizations need to integrate risk management, including non-financial issues into the processes and culture rather than having a separate framework. There have been many high profile scandals of organizations failed to engage with non-financial risks early enough, for example, the air emissions scandal from VW.
How does managing non-financial issues help your business? Many studies have found that companies that integrate material Environmental, Social, and Governance (ESG) issues into business have outperformed their peers.
Find out how making the change and integrating risk management into strategy and culture can help future-proof your company as well as give it a competitive edge in this ever-changing market.
Lean six sigma yellow belt 1 day seminar1Marysmith401
The Lean Six Sigma helps to improve the operational performance of employees so as an organization by reducing variances. This is widely recognized certification for quality management. The Lean Six Sigma credential can provide a significant advantage to employers and employees when it comes to performance and deliverance. A Lean Six Sigma Green Belt (LSSGB) offers understanding of the Lean Six Sigma Method within Define, Measure, Analyze, Improve and Control (DMAIC) phases defined by the IASSC Lean Six Sigma Green Belt Body of Knowledge™. On the other hand, Lean Six Sigma Black Belt (LSSBB) offers a thorough understanding of all aspects of the Lean and Six Sigma Method including a high-level of competence contained within the phases of DMAIC i.e. Define, Measure, Analyze, Improve and Control.On completion of Combo Lean Six Sigma Green Belt & Black Belt certification training, you will:
• Capable to utilize Lean concepts such as process mapping, 5S, waste reduction, value stream mapping and mistake proofing.
• Understanding on various levels to eliminate barriers and meet project success.
• Ability to perform basic and advanced statistical analysis to discover the relationship between key inputs and process outputs.
• Demonstrating projects to peers and managers.
• Ability to implement the concepts of Lean, Six Sigma DMAIC, Total Productive Maintenance (TPM) and Design for Six Sigma using statistical tools and analysis.
This Certification is Suitable for:Lean Six Sigma Green Belt & Black Belt is designed to meet the career requirements of professionals, including Senior Management, Software Professionals, Team leaders, Quality Assurance Engineers, Software Quality Assurance team members, Project Managers, Management students, etc.
Performance through agility generic v2.2 seminarRobert Twiddy
Agility Way provides training and coaching services in Performance Through Agility. This presentation fro a seminar that took place in Bangkok in September 2018
A rapid and easy assessment of your web presence and its alignment with best practices. Covers most aspects of functionality, most types of sites and the needs of companies, non-profits and individuals. A 'quick-and-dirty' 'cheat sheet' to make your web prsence best-in-class.
Please DOWNLOAD the original file (little gren arrow icon next to the presentation box) because Slideshare technology can't display it in readable size.
Fixed-mobile convergence, communities and the challenges of subscriber base (and revenue) protection. The role of Web 2.0 business principles and techniques.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
3.0 Project 2_ Developing My Brand Identity Kit.pptx
Customer Segmentation Principles
1.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
www.prism-gb.com
Customer Segmentation
Principles of effective differentiation
Vladimir Dimitroff
Director
PRISM Consulting
http://www.prism-gb.com
IIR Telecommunications Conferences
Customer Segmentation
Strategies
London
November
2005
2.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
WORKSHOP AGENDA
Fundamentals and Benefits of Differentiation
Value Segmentation Principles and Techniques
Needs Segmentation Methods
Strategic, Macro- and Micro-segmentation
Differentiated Customer Planning and Resource Optimisation
3.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
WORKSHOP AGENDA
Fundamentals and Benefits of Differentiation
Value Segmentation Principles and Techniques
Needs Segmentation Methods
Strategic, Macro- and Micro-segmentation
Differentiated Customer Planning and Resource Optimisation
4.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Product Excellence
Operational Efficiency Customer Intimacy
Competitive edge based on cost (and price
competition) is not sustainable in the long term.
Product leadership is short-lived, too.
Technology moves fast and even products that
are not overtaken are easily replicated.
Customer centricity is about long-term
relationships, therefore provides sustainable
advantages.
It also results in added competitiveness in the
other two dimensions
see Treacy & Wiersema: ‘The Discipline of Market Leaders’
WHY FOCUS ON CUSTOMERS?
THE 3D VIEW - THREE DIMENSIONS OF COMPETITIVENESS
Slide 1
All three are important, but you can only excel
in one - and should choose your focus:
5.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
WORKSHOP AGENDA
Fundamentals and Benefits of Differentiation
Value Segmentation Principles and Techniques
Needs Segmentation Methods
Strategic, Macro- and Micro-segmentation
Differentiated Customer Planning and Resource Optimisation
6.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
NumberofCustomers
Customer Value
CRM
Picket Fence
Mass Marketing
Highest Value
Customers
WHERE TO START
Slide 4
Source: Peppers & Rogers Group
7.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Customer value segments
Most Valuable Customers: Retain
Most Growable Customers: Grow
Marginal customers: Business as
usual?
Service costs
Actual value Strategic value (potential share of customer)
‘Below Zero’ Customers:
Dismiss, or?
DIFFERENT CUSTOMERS BY VALUE
Slide 2
Source: Peppers & Rogers Group
8.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
• From revenue to profitability
– Pure spend-based models: straightforward and easy
– Introducing cost elements: allocation methods
– Detailed individual customer costing
• From past to future value
– Historic value: recent history
– Historic value: total cumulative history (‘lifetime’)
– Future (potential)value: different predictive methods
– Net present value (NPV): discounted future value
• Lifetime Value (LTV) or CLV (customer lifetime value)
“The net present value of all future profit streams from an individual
customer’s relationship with the company”
CALCULATING CUSTOMER VALUE
9.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
• Predictive techniques
– Regressions (linear, multiple, logistic)
– Trees (classification, decision)
– Advanced techniques (neural networks, genetic algorithms)
• Definitions of ‘lifetime’
– Strictly referring to a future period
– Need for consistent predictability and actionable/manageable
– Techniques to calculate LOS (length of service); survival analysis
(LIFEREG, PHREG procedures in SAS)
• Alternative models and techniques
– the RFM (recency, frequency, monetary value) model as a
segmentation tool
– Rapid identification techniques (‘golden questions’)
CALCULATING CUSTOMER VALUE
10.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
“Man has almost constant occasion for the help of his
brethren, and it is in vain for him to expect it from their
benevolence only. He will be more likely to prevail if he can
interest their self-love in his favour, and show them that it is
for their own advantage to do for him what he requires of
them.”
Adam Smith, The Wealth of Nations, 1776.
WHY NEEDS?
Slide 6
11.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
WORKSHOP AGENDA
Fundamentals and Benefits of Differentiation
Value Segmentation Principles and Techniques
Needs Segmentation Methods
Strategic, Macro- and Micro-segmentation
Differentiated Customer Planning and Resource Optimisation
12.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Fundamentals:
Any business
only exists if it
has customers.
Customers
have specific
needs that
have to be
satisfied.
A business only
exists to satisfy
specific needs.
The Link to Value:
In satisfying needs a business provides value.
Products and services represent value to the one
with needs (the Customer).
(see Added Value concepts in economic theory,
supply/demand concepts etc.).
In the process of satisfying needs value ‘changes
hands’.
(see Value Migration concept in strategy models and
theories).
WHY NEEDS?
Slide 7
13.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Customer Profiles (Who they are?)
Sets of (static) attributes allowing reasonable assumptions, e.g.
“families with babies need nappies”, “teenagers need bright-
coloured mobile phones” or “companies with vehicle fleets
need motor insurance”…
Customer Behaviour (What they do?)
Based on assumptions like “beer drinkers are more likely to
choose beer over wine” or “once a gambler, always a
gambler”.
THE WORLD OF PROXIES
Slide 8
14.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Demographic profiles: Grouping people by gender, age, marital
status, education, occupation etc.
Geo-demographic: Adding the spatial dimension in one or more
ways: absolute (North, South, Wales, Leeds), relative to population
concentrations (urban, suburban, rural) or based on economic
regions (Thames Valley).
Psycho-demographic: Introducing attitudinal and emotional
affiliations (nerds, lads, anoraks) – often hard to distinguish from
pure demographics (e.g. education, occupation) or from
behaviour types (see below).
In B2B environments the equivalents are vertical sectors and sub-
sectors, company size (employees and core business metrics, e.g.
turnover), location(s), target market(s) etc.
WHO THEY ARE
Slide 9
15.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Transaction (purchasing) behaviour: Frequent shoppers/ flyers,
bulk buyers, occasional shoppers, declining custom etc.
Motivation-based behaviour: Impulse buyers, early adopters,
bargain hunters, status seekers.
Lifestyles: Often mixed with demographics, indicate needs
through preferences manifested in everyday behaviour (a
number of popular templates and commercial databases of
pre-scored population).
B2B: Order consolidators, end-of-quarter (end-of-year) buyers
etc.
WHAT DO THEY DO
Slide 10
16.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Customers have
individual (and
group) preferences
often exhibited in
behaviour patterns,
sometimes
declared in
dialogue with the
company, but
sometimes also
withheld and/or
unknown.
Product or service preferences are directly linked to needs. The
chance that those are true needs is somewhat higher, although
product preferences may often reflect perceived needs.
Attribute preferences also manifest needs, however those are
secondary, ‘satellite’ needs accompanying the core need in a
dynamic ‘bundle’. The likelihood here is greater that they are
perceived needs, particularly in the less tangible areas of taste,
fashion, peer influence etc.
For practical purposes of needs modelling and needs group
management, explicit and implicit preferences can be considered
a proxy for needs.
HOW ABOUT PREFERENCES?
Slide 12
17.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Give me … (speed, safety, confidence, a positive
experience, success-personal or corporate).
Help me to … (get to a destination, connect to a
person/organisation, enhance my life).
Save me … (time, money, hassle, risks or hazards, negative
experiences).
THE 3 QUESTIONS TEST
Slide 11
18.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
WORKSHOP AGENDA
Fundamentals and Benefits of Differentiation
Value Segmentation Principles and Techniques
Needs Segmentation Methods
Strategic, Macro- and Micro-segmentation
Differentiated Customer Planning and Resource Optimisation
19.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
ALL KINDS OF SEGMENTATION
Macro-segmentation:
typically a market
segmentation view
Strategic segmentation:
customer segmentation for
long-term differentiation
Micro-segmentation: a
tactical, action-oriented
tool for immediate targeting
Used in defining market proposition/s, brand
values, and in targeting mass marketing activities.
E.g. ‘Youth’, ‘Pre-paid’ or ‘Rural’ segments
Used in strategic planning, resource allocation,
Marketing/Sales/Service optimisation.
E.g. ‘High Value’, ‘Growable’ or ‘BZ’ customers,
‘Technos’, ‘Savers’ or ‘Status-symbol’ segments
Used in day-to-day direct campaigns (cross- and
up-sell), targeted churn prevention, acquisitions.
E.g. ‘Seasonal roamers’, ‘Bargain hunters during
competitor’s campaigns’, ‘Location patrons’
20.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
WORKSHOP AGENDA
Fundamentals and Benefits of Differentiation
Value Segmentation Principles and Techniques
Needs Segmentation Methods
Strategic, Macro- and Micro-segmentation
Differentiated Customer Planning and Resource Optimisation
21.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Business goals:
Get customers
Keep customers
Grow customers
Segment 1
Segment 2
Segment 3
Acquisition
Retention
Development
Acquisition
Retention
Development
Acquisition
Retention
Development
Overall objectives
translate to different
priorities in each
segment.
SEGMENT MANAGEMENT
Slide 5
22.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
Most valuable customers
Most growable customers
Marginal
Unprofitable
KEEP
GROW share
of customer
Maximize profit, minimize cost
Divest
Media
E-channels
Direct mail
Telemarketer
In-person service reps
Dedicated service
reps
C
ustom
ervalue
Allocating
communication
channels according to
the value of segments
RESOURCE OPTIMIZATION
Slide 3
Source: Peppers & Rogers Group
23.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
THE ‘HOW TO’ OF PRACTICAL STRATEGIC SEGMENTATION
N1 N2 N3 N4
V1
V2
V3
V4
V5
Evolving segmentation:
- From historic to predictive value and from
revenue to profit-based individual customer value
Starting simple could mean few, expenditure-based value
segments. Introducing any known costs leads to a better,
profitability-oriented differentiation. Using non-linear
predictive models allows managing future, lifetime value.
-From broad, proxy-based needs segments to
precise, true need clusters
-Early needs-driven segmentation schemes often start
from a market (macro) segmentation, using proxies like
basic demographics or transaction behaviours. As
companies learn to interpret the true needs behind such
proxies, more complex needs clustering replaces the
macro segments and allows linking individual needs to
value growth, retention and targeted, profile-based
acquisition.
24.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
• Customer Plan (operational efficiency through customer intimacy)
– Developing differentiated treatments for each intersection of a
needs cluster with a value segment (customer community with a
unique combination of value and needs)
• differentiated marketing and sales
• differentiated service levels and approaches
• differentiated communications: message and channel
• all above differentiated consistently across touchpoints
• embedding in the company’s goal-setting, planning and resource
allocation
• Product development (product excellence through customer intimacy)
– Re-defining the mission (and often the primary industry sector) of a
company as ‘the business of satisfying customer needs’)
– Intimate needs understanding at the core of new product
development and existing product improvement
– Managing product capabilities around needs (and value)
‘SO WHAT?’ (ACTING UPON THE KNOWLEDGE)
25.
EVOLVING CUSTOMER SEGMENTATION
The PRISM Organization
contact details
Vladimir Dimitroff
Director
PRISM Consulting (UK) Ltd
6 Priors Court
Newark Str
Reading RG1 2SR
United Kingdom
Phone: +44 (0)7947034944
E-Mail: vdimitroff@prism-gb.com
www.prism-gb.com
Austria • Czech Republic • Germany
Hungary • Italy • Malta • Poland • Russia
Spain • Switzerland • Turkey • UK
THANK YOU
Notes de l'éditeur
Operational efficiency companies compete on price, but there is a limit to how much you can reduce costs – below that (when everyone learns cost management and reaches that bottom level) cutting prices is suicidal. Product excellence doesn’t last long, as technology has shortened development cycles and everyone comes up with the same or better-performing products. Products can also be copied. Customers cannot be copied, and relationships are long-term, therefore this competitive direction is sustainable. When you treat different customers (segments) differently according to their value you optimise resource allocation,i.e. reduce costs – achieving Operational Efficiency. When you intimately understand customer needs you are best positioned to develop the right product for them, achieving Product Excellence – this dimension gives you the other two as a ‘free bonus’
Before a full-scale segmentation is established in a business, a good idea is to identify the high-value customers (e.g. top 10% segment by value) and focus on them. They are a minority in numbers, therefore easier to apply differentiated treatment and to get to know them closer. The objective is to maximise satisfaction and eliminate churn (these contribute the bulk of your profit, you can’t afford to lose them!) but also to understand their profile better, so that in acquisition efforts you target similar prospects to enrich your high-value base. As you get more advanced in managing this segment, you move the barrier and start treating differently the next, lower value segments untill you develop a differentiated strategy for each one, even the bottom segment.
Some customers have fully reached their potential and are of high value: those you cannot afford to lose; others are still of lower value, but have high potential – they must be grown, developed. A great number have marginal potential and their value isn’t of critical importance – they don’t need special attention; at the very bottom some are contributing even less than the cost to serve them – some experts advise to ‘fire’ them (cancel relationships) but we would suggest to minimise the cost of doing business with them, so that you don’t incur losses – but still keep them ‘in the family’
The second dimension of segmentation is by Needs – but that only comes after a company has good VALUE segmentation in place. The following few slides briefly explain Needs Segmentation.
Every business has three key objectives for its customers: to get some (as many as possible!), to keep them (for as long as possible), and to grow them (as much as possible). Let’s examine a simplified model, focussing on the ‘keeping’ part (in line with the theme of this conference).
For each of three value segments, a business has a ‘portfolio’ of objectives that include all three: acquisition, retention and growth. They are not, however, present in equal measures! (see font sizes used).
For the high-value segment, for example, retention is a top priority (lose a few customers here and you lose significant revenue). This justifies corresponding investment in achieving loyalty: from the choice of communication channels (live reps, even face-to-face meetings), through appropriate service levels (the higher – the more costly), to the rewards for loyalty.
The medium-value segment has retention as a second priority (in this example – your segment objectives maybe different). This company will spend more on acquisition, yet sufficient resources will be allocated to protect outflow of revenue through churn. Service levels will still be excellent (just not exceptional), and the mix of communication channels may include less of the most interactive (and expensive) ones like face-to-face and outbound reps.
The low-value segment has a top priority to stop losing money form the least profitable customers: not by deliberately losing them, though. Migrating them to a higher segment by encouraging usage is a high priority. Needless to say, retention (especially of loss-causing customers) is a low priority. There may be little or no dedicated spend towards this end. A basic service level still doesn’t mean bad service, but self-service is encouraged as cost-effective. Exclusion fro direct marketing of the least profitable customers saves a lot of costs and helps a break-even or small profit there. What if this approach leads to lower satisfaction and (God forbid!) defection by some of these customers? This should be a planned probability, and if it does happen, the effect may not necessarily be negative (it will be negative in the higher segments).
Anecdote (real-life example from a client):
Call centre receives inbound call from a customer tagged as the lowest value segment. He wants a handset upgrade, but is uncomfortable with the bundles on offer. ‘Can I have that colour model with the pictures, but still pay my old tariff?’, he asks. No, he can’t – is the answer, as his minimal tariff is only offered with economy handsets. After several minutes of polite explanation by the agent, the customer persists. The agent has a time limit and is getting frustrated with the situation; he says: ‘What you are asking is impossible – at least I cannot help you; but I will give you a number to call where they may help you’ – and he gives the customer the sales number of a competitor.
Moral1: Sometimes we don’t necessarily have to be afraid to lose a customer.
Moral2: This can only happen with an empowered employee (in this case he was not, and risked punishment). It will never happen with an outsourced offshore call centre ;o)
More valuable customers at the top of the pyramid deserve more personalised (and more expensive) service; going down the value scale, cost-effective channels become more appropriate; lowest value customers only get mass media communication and self-service