Well Known….Targeting    that lead to    Segmentation               Confidential ‐ Donot share the presentation           ...
Segmentation and TargetingBharat ChaudharyBharat Chaudharybharat_sanofi@yahoo.co.inDisclaimer  Views presented during pres...
All customers are not created equal                               q           Confidential ‐ Donot share the presentation ...
Measurement Science told me but,  my old grocery store knew .. but my old grocery store knew Market  Segmentation Customer...
Segmentation provides an opportunity to know customer better.…..an opportunity to know customer better.…..                ...
Myths about Segmentation..about Segmentation   Market segmentation is portioning process    Market segmentation is portion...
Segmentation is the first step to a customer centric approachfirst step to a customer centric approachCustomer segmentatio...
‘Typification’Geographical Based   •Place   Size                                                                         D...
Quality of input  is essential …Four step profiling processFour step profiling process   Rep collects data on    R     ll ...
Targeting and Resource allocationResource allocation      Stage 1                 Stage 2                          Stage 3...
Company wide approach for high value customers…for high value customers                                                   ...
Different Customer by Value….by Value        Most Valuable Customers : Retain                              Most Growable C...
Dynamic Segmentation BPS Approach (A new hybrid Approach)BPS Approach (A new hybrid Approach)     Behavioral  Prescribers ...
Some New Approachesto  Understand Customers…to Understand Customers   Cost per Call vs ROI   C        C ll   Customer rela...
Classifying activitiesTo do or not to…To do or not to      Stop doing                 Keep doing                          ...
Confusing factors                • Potential or Contribution ?                • Brand or Composite ?                 • Ter...
5 steps to your goalto your goal                Analysis                                                                  ...
STPat its best ☺at its best.. ☺                  Confidential ‐ Donot share the presentation                           wit...
Majority of the    j ytimes Segmentation“WORKS” In rare occasions , STP is not required                   Confidential ‐ D...
Thank you                               Bharat Chaudhary                               Bharat ChaudharyConfidential ‐ Dono...
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Effective segmentation and targeting - A new approach

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A simple approach to segment your customers and market

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Effective segmentation and targeting - A new approach

  1. 1. Well Known….Targeting  that lead to    Segmentation Confidential ‐ Donot share the presentation  without author permission
  2. 2. Segmentation and TargetingBharat ChaudharyBharat Chaudharybharat_sanofi@yahoo.co.inDisclaimer  Views presented during presentation are personalViews presented during presentation are personal Confidential ‐ Donot share the presentation  without author permission
  3. 3. All customers are not created equal q Confidential ‐ Donot share the presentation  without author permission
  4. 4. Measurement Science told me but,  my old grocery store knew .. but my old grocery store knew Market  Segmentation Customer  Segmentation Not seen many grocery stores closing  down despite of  stiff competition  from external environment Confidential ‐ Donot share the presentation  without author permission
  5. 5. Segmentation provides an opportunity to know customer better.…..an opportunity to know customer better.….. All three are important,  All three are important but you can only excel in one  and should choose your focus Product  Product Competitive edge based on cost (and price  Excellence competition) is not sustainable in the long  term. Product leadership is short‐lived, too term Product leadership is short lived too Technology moves fast and even products  that are not overtaken are easily replicated that are not overtaken are easily replicated Customer centricity is about long‐term  e at o s ps, t e e o e p o des susta ab e relationships, therefore provides sustainable advantages Operational Customer  It also results in added competitiveness in the  p Efficiency Intimacy other two dimensions. Confidential ‐ Donot share the presentation  without author permission & Wiersema: ‘The Discipline of Market Leaders’ Treacy
  6. 6. Myths about Segmentation..about Segmentation Market segmentation is portioning process  Market segmentation is portioning process In reality segmentation is gathering process Segmentation is only process or technique  p This is another half truths. Its real impact comes from its     role as strategic marketing variable Everyone is part of a market segment  Everyone is part of a market segment Although this might be an ideal situation for the  marketer k t Once done, it doesnt require maintenance Sales rep doesnt provide quality of information Confidential ‐ Donot share the presentation  without author permission
  7. 7. Segmentation is the first step to a customer centric approachfirst step to a customer centric approachCustomer segmentation aims toCustomer segmentation aims to Identify , Describe and Quantify in the market Segments : Similar Needs, Behaviors, Expectations & Purchasing criteria Segments : Similar Needs Behaviors Expectations & Purchasing criteria Improve the Targeting & ROI of marketing communication and sales activities Actionable Measurable Substantial Accessible Differential Confidential ‐ Donot share the presentation  without author permission
  8. 8. ‘Typification’Geographical Based •Place   Size  Demographic Based D hi B d •Density •Specialty, Age •Urban/Rural •Practice Type •Climate/Distance •Nationality, Race, Region  2Behavioral BasedB h i lB d •Purchase Occasions •Benefit Sought Segmentation Use status •User status •Usage Rate , Loyalty •Attitude towards brand  3 Value Based Value Based •Quantity based •Single dimension •Patient & Rx Information  Psychographic Based y g p •Social Class •Lifestyle  markers Confidential ‐ Donot share the presentation  •KOL/KBL without author permission •Personality  ( Authoritarian, Ambitious etc)
  9. 9. Quality of input  is essential …Four step profiling processFour step profiling process Rep collects data on  R ll d FLSM analyze profiling  FLSM l fili FLSM discuss with Reps  FLSM di i hR SLSM sign off  SLSM i ff customers quality profiling outcome final profiling ~ 4 6 weeks 4‐6 ~1/2 weeks 1/2 ~2/3 weeks 2/3 Continuous improvement:  replicated each Confidential ‐ Donot share the presentation  without author permission
  10. 10. Targeting and Resource allocationResource allocation Stage 1 Stage 2 Stage 3 Stage 4 Data cleaning &  Select the target   High/Medium/Low  Resource allocation  alignment  number Aligned with  mktg.  and  Territorial  Remove the  junk and  Validate through  plan demarcation non qualified answers non qualified answers external data  external data Behavioral markers Behavioral markers Adjust the call load Adjust the call load source Confidential ‐ Donot share the presentation  without author permission
  11. 11. Company wide approach for high value customers…for high value customers Picket Fence ustomers Mass Marketing CRM Number of Cu Highest Value Customers Customer Value C t V l Confidential ‐ Donot share the presentation  without author permission Source: Peppers & Rogers Group
  12. 12. Different Customer by Value….by Value Most Valuable Customers : Retain Most Growable Customers :  Grow Marginal customers : Business as  usual? l? ‘Below Zero’ Customers : Dismiss, or ? Service costs Customer value segments Actual value Strategic value (potential share of customer) Confidential ‐ Donot share the presentation  without author permission Source: Peppers & Rogers Group
  13. 13. Dynamic Segmentation BPS Approach (A new hybrid Approach)BPS Approach (A new hybrid Approach) Behavioral  Prescribers Segmentation enables sales people to qualitatively and quantitatively adjust promotional activities depending  on the prescribing potential of each physician over time Confidential ‐ Donot share the presentation  without author permission
  14. 14. Some New Approachesto  Understand Customers…to Understand Customers Cost per Call vs ROI C C ll Customer relationship analysis (CRA) Click stream  Analysis (For digital/web campaigns) Life time value of customer ( More practiced in high end products)“The net present value of all future profit streams from an individual customer’s relationship with the company” Confidential ‐ Donot share the presentation  without author permission
  15. 15. Classifying activitiesTo do or not to…To do or not to Stop doing Keep doing Do more • Abundant data Abundant data  • Be Simple Be Simple • Communication • Averaging • Be Emphatic • Customization • Analysis Paralysis Analysis Paralysis • Be Repetitive Be Repetitive • Clarifications Confidential ‐ Donot share the presentation  without author permission
  16. 16. Confusing factors • Potential or Contribution ? • Brand or Composite ?  • Territory or Nation  ?Confidential ‐ Donot share the presentation  without author permission
  17. 17. 5 steps to your goalto your goal Analysis ValidateQuestionnaireQ i i Communicate Clarify Approach Clarify Approach Confidential ‐ Donot share the presentation  without author permission
  18. 18. STPat its best ☺at its best.. ☺ Confidential ‐ Donot share the presentation  without author permission
  19. 19. Majority of the  j ytimes Segmentation“WORKS” In rare occasions , STP is not required Confidential ‐ Donot share the presentation  without author permission
  20. 20. Thank you Bharat Chaudhary Bharat ChaudharyConfidential ‐ Donot share the presentation  without author permission

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