Marketing Strategy Consultant 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.
 

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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We use multi-dimension segmentation including

1. RFM (Recency Frequency Monetary Value)

2. Lifestage and Demographics

3. Attitudinal

4. Behavioural elements (including  Product Purchasing , and Channel Usage)
    

This multi-dimension approach uncovers unique insights and allows a business to take advantage of previously untapped profit opportunities .

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360 Degree Customer View

We have helped clients create a 360 degree view of their customers  by combining multiple data sources from inside and outside of the organisation  and have identified for each segment:

1. Customer Spend by category

2. Customer Satisfaction by Touch Point

3. High Street behaviour (Market Share by product category)

4. Customer Engagement by marketing channel

5. Brand Advocates and Detractors

6. General Attitudes

 

This in turn has directed category management , product development, the customer service plan and the marketing plan ensuring joined up customer driven activity

 

The single customer view allows you to know your customers and potential customers better than the competition and improve marketing effectiveness significantly