Customer Segmentation

We help clients create and implement customer segmentation. It is a key tool in focussing both tactical and strategic marketing activity  around the greatest profit opportunities.


Businesses who do not segment their markets or customers and treat them all the same are at a competitive disadvantage


What is customer segmentation?


Customer segmentation is the process of dividing customers into groups that share common characteristics and behaviours. Customer Segmentation is both an art and science and should be at the heart of the marketing strategy and plan.



Why is customer segmentation important?


In simple terms it is the foundation that allows a business to provide more relevant products, services, experiences and communications which in turn improves profitability.  It ensures the marketing budget is better targeted and more effectively spent.


Not all customers are created equal. Scarce marketing resources need to be directed at the most valuable segments and not spread evenly and thinly across the entire customer base. Knowing who your best customers are and knowing how to acquire more of them is an important first step. This insight alone can dramatically improve the ROI of both customer retention and acquisition.


The Pareto Principle is not just a theory but a reality. We have helped clients uncover their most profitable segments. In one case Best Customers made up 15% of customers but accounted for 65% of sales and profit.




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