Four Steps Of Customer Segmentation

Most B2C companies rely on some form.

Clearly define the goals of segmentation.

The most important question that every company has to ask is: what is the purpose of subdivision? Understanding the purpose of subdivision helps decision-makers to distinguish whether a strategy is a strategy or a tactic, or a combination of the two.

Strategic subdivision is applied to generalized, enterprise level operation mode design, brand customer experience and overall value development.

It is often the basis of organizational design.

Tactical subdivision is used for more specific purposes, such as the acquisition of new customers, sales promotion activities, or channel migration.

In the existing successful cases, tactical subdivision has a significant impact on strategy subdivision.

In fact, the best combination of strategy subdivision and tactical subdivision is the best.

Design subdivision around target.

The key to effective design is to make a business decision.

After the target is determined, we must strictly design subdivision and ensure that the design results are perceptive, operational and identifiable.

This means that many aspects, including behavior, attitude, channel use and profitability, must be integrated and fully understood.

In the past, we had to make difficult choices in the factors affecting the segmentation. As a result, many of the customers who needed to be differentiated could not be identified or distinguished from a large number of behaviors.

The new methodology, such as the statistical modeling technique of latent class analysis, can make different types of data form the same subdivision model.

If designed properly, these methods can also be used to pursue new opportunities.

Prepare for subdivision blueprint.

First, we need to consider the issues that need to be considered in the decision-making process: how can subdivision affect the main value criteria? Can it support the redesign of brand and value proposition or front-line sales and services? Can it ultimately achieve more suitable and dynamic online sales and direct sales? How can business and functional units process access information and apply to daily work? Determine the outline of subdivision, define the subdivision process, share with partners, and formulate and discuss revised indicators.

For example, modify the existing sales and service agreement.

A large retailer redesigns the location, configuration and staffing of the fitting room from the perspective of customers' shopping. This is a necessary way to achieve the goal of subdivision, effectively reducing the complexity of front-line staff analysis, and achieving real-time interaction with customers.

Management implementation process.

Subdivision provides challenges for change management and ultimately surpasses technical or marketing challenges, but this is often ignored.

In order to comprehensively manage change, we must manage the expectations from the very beginning.

Of course, more importantly, leaders should focus on the subdivision process.

When employees ask, "what kind of things do you want me to do? Why?"

In particular, portraying a strategy based subdivision and providing powerful ways to help implement the front-line team will provide better customer experience.

In an era of increasingly competitive competition and the adoption of new methods to capture massive data about customers, every company must improve its ability to predict and respond to customer needs.