The document discusses customer value segmentation and market segmentation. The primary objectives are to understand the value of individual customers to compare them, and use their position in the hierarchy to determine if they should be included in marketing campaigns. Understanding a customer's rank enables decisions around investment levels and whether to invest in them. Testing the RAG (Red, Amber, Green) model on non-marketers helped improve internal communication, and clustering analysis provided a better understanding of the customer base. The RAG status was useful for highlighting sales opportunities and prioritizing outbound sales calls.

1. CUSTOMER VALUE SEGMENTATION
GROUP-3

2. SEGMENTATION:
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Market segmentation is the process of dividing a market of potential
customers into groups, or segments, based on different characteristics.
The segments created are composed of consumers who will respond
similarly to marketing strategies and who share traits such as similar
interests, needs, or locations.

3. OBJECTIVES
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The primary objective was to understand the value of an individual customer so that it
was possible to compare them against others and use this position in the hierarchy to
include or exclude the customer from marketing campaigns based on the objectives of
the activity
Understanding a customer's rank enabled decisions to be made around the level of
investment made and in some cases, whether to not invest in a customer at all

4. INDUSTRY ANALYSIS
Strengths
• Possess both software and hardware solutions
• Provides professional local consultancy services
• Cooperated with leading companies for IT services
• Capability of autonomous manufacturing and supply of data driven
marketing
Weakness
• Limited Experience in the field
• Research and Development team needs to be strong for key software
technologies and business analytics
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5. Opportunity
• Large-scale cloud data center continues to expand in scale, placing orders
directly to the server and storage equipment OEM industry.
• Enterprise data continue to grow and support the needs of storage devices.
• Enterprise mobile application software and services with big data needs are
growing.
Threat
• Global leading companies lead big data technologies and standards.
• Part of the business is replaced by emerging vendors such as Amazon and
Dropbox.
• Industries rise in the emerging markets

6. Silver Jet Insight improve customer experiences
through understanding customer behavior.
Developing strategies through the use of data
Building high levels of engagement and strong
relationships.
Use data to build understanding of the customer
base and how they interact with the company.
Help define the customer strategy
SILVER JET INSIGHT

8. Competitors
Optimizely
Google
Analytics
Buzzsumo Beckon
CompetitorsCOMPETITORS

10. WHAT IS MARKET SEGMENTATION?
Market segmentation is the research that determines how
your organization divides its customers or cohort into
smaller groups based on characteristics such as, age,
income, personality traits or behavior. These segments
can later be used to optimize products and advertising to
different customers.
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12. TYPES OF MARKET SEGMENTS
Geographic
• Divides market into
different
geographical
regions
• Population
density,size of the
area,regions are
some of the factors
Demographic
• Divides market in
terms of
demographic
variables
• Age,marital
status,family
size,occupation are
some of the
variables
Psychographic
• Information
concerning attitude
and personality
traits
• Knowledge of life
cycle can provide
meaningful picture
of a person
Behavioural
• Division on the
basis of knowledge,
attitude, use or
response to a
product.
• Provides better
understanding of
customers
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13. CUSTOMER VALUE SEGMENTATION
• Understand best opportunities for strategic marketing investments
• Identify tactical marketing opportunities
• Develop clearly defined, value-based segments for customers.
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15. PRIMARY OBJECTIVE
• Understand the value of an
individual customer.
• Possible to compare segmented
customer base to others.
• Using this technique to include or
exclude individual customer /
customer base from a campaign,
based on the objective of the study.
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• Understanding customers rank.
• Enables decisions to be made around the
level of investment.
• Gives an idea to invest in a customer or
not.
• Will save investments in terms of money
spent, branch staff time as well as helping
sales representatives.

16. RFM MODEL

17. RFM
RECENCY- The most recent purchase of a product or service.
FREQUENCY – Number of purchases within a certain Time Period
MONETARY – Money spent on each purchase.

18. SEGMENTATION USING RFM
125Combinations

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DYNAMIC CALCULATIONS
RAG

20. REVIEW ON SEGMENTATION DONE BY SILVERJET

21. RAG MODEL
• A Key Performance Indicator (KPI) is meaningless unless its value can
be compared to something. Without a comparison it is impossible to
say if the value is good, bad or indifferent.
• For a KPI to be useful acceptable and unacceptable results need to be
clearly understood. This are usually described as defining ‘thresholds’.
• There are several threshold models available, for the purpose of this
case study, we see the use of RAG model.
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There are no hard and fast rules to the meanings attributed to each of
the colored areas but generally they tend to be:
• Green – an acceptable result, we are on target
• Amber – there may be a problem, we should investigate
• Red – an unacceptable result, there is a problem that needs
rectification

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24. FINDINGS
• Testing of the model on the non – marketers helped in better
understanding of the direction of the internal communication.
• Clustering analysis helped better understanding of the customer base.
• The RAG status became a useful model to highlight the sales
opportunities.
• The RAG status provided the opportunity to the branch sales force to
prioritize the outbound sales calls.
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25. CONCLUSION
• A shift from the traditional RFM Model.
• The RAG model can be used by the sales and branch staff.
• It helped in getting the timing and communication channel right.
• It helps in getting most of the budget and getting the best responses.
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26. Thank You