SlideShare a Scribd company logo
Making Customer Segments Matter:
Essential and Effective Principles for Proactive
Customer Base Management

March 20, 2012
MarketBridge Overview

  Deep expertise and experience working closely with Fortune 1000 and emerging
  growth companies’ senior Marketing and Sales leaders to drive revenue growth
  by leveraging technology and strengthening empirical discipline.

                     Customers                                            Differentiators
     •   18 of the top 50 global B2B brands               •   Exclusive focus on revenue growth via new go-
     •   Global Fortune 1000 corporations and                 to-market strategies and solutions
         emerging growth companies                        •   View Marketing & Sales as an integrated
     •   Considered-Purchase Products                         process
     •   Enterprise, Mid-Market, and SMB Business         •   Leverage emerging technologies – social,
         Customers                                            digital, CRM – with traditional Marketing
     •   Executive Leadership team clients – CXO,             capabilities and Sales channels
         Marketing, Sales                                 •   Empirical, analytical core competency
                                                          •   Strategy-to-execution-to-results




Sample Clients across Technology, Financial and Business Services, and Healthcare




                                                    –2–                                     ©2012 MarketBridge Corp.
Today’s Discussion Topics
 Context and Challenge


 Five Critical Questions in the Segmentation Process


 Case Study: Small Business Segmentation for a Business Services & Supplies
 Company




                                      –3–                      ©2012 MarketBridge Corp.
What’s the Challenge?

              • As the marketplace develops, customer needs are becoming more specific and
Challenge 1     fragmented


              • The gaps between the value of various customer segments is widening as the
Challenge 2     market becomes more polarized


              • The growth of new distribution channels and marketing vehicles is making it
Challenge 3     easier for all companies to engage customers with more targeted approaches


              • The availability of company-wide sales and marketing resources continues to
Challenge 4     diminish



Proactive Customer Base Management through
Segmentation is More Important Now than Ever


                                               –4–                            ©2012 MarketBridge Corp.
Where Does One Start?
Five Critical Questions in the Segmentation Process:
                                                 Undifferentiated Customer Base
1. What customer characteristics should
   we use to profile the market segments?
2. What approach should we take to ensure
   that the segments accurately represent
   the market but are also actionable?
3. What criteria should we use to prioritize
   segments and select targets?
                                                           Segmentation
                                                              Process
4. How can we ensure that the segmentation
   is operational and can be deployed in our
   marketing activities?
5. How do we „land‟ the segmentation within
   the organization and ensure that it gains
   traction?



                                       –5–                          ©2012 MarketBridge Corp.
Question 1: What customer characteristics should we use?

 Firmographics / Demographics                  Buying Behavior                Attitudes / Preferences

• Descriptive information about        • ‘Hard’ data on purchase         • ‘Soft’ data on preferred
  customers such as company              history for specific products     product / service features,
  size, industry or about the            and services, average             channel preferences and
  decision-makers themselves,            expenditures, frequency of        attitudes or opinions that
  including job role, breadth of         purchase, and other               influence the purchase
  responsibility, etc.                   behavioral factors                process



                                                   In our experience, most successful
      Who?                                         segmentations incorporate a range of
             What?                                 descriptive, behavioral, and psychographic
                       Where?
                                                   dimensions
                                   When?

                                     Why?          Divergent forms of information provide insight
                                                   into who is buying, what they’re buying, where
                                                   and when they are buying, and perhaps most
                                                   importantly, why they are buying




                                                      –6–                               ©2012 MarketBridge Corp.
Question 1: What customer characteristics should we use?
(continued)
Finding the Right Data Sources:

                                              Prospect
 Your company database may not                Database       Customer
                                                             Database
 be adequate if using the
 segmentation to guide entry into               Company Databases       Syndicated Data   Primary Market Research
 new markets or to market new
                                                     • Firmographic &     • Firmographic &     • Psychographic
 products/ services                                    behavioral data                           data
                                                                            behavioral data




                                       Benefits
                                                     • Known data quality • Augments depth &   • Highly customized
 Syndicated data can be used to                      • High granularity     breadth            • Very granular
 augment existing customer records,                  • Covers current     • Covers prospects   • Covers entire
 but still fall short in terms of                      customers                                 market
 accuracy, coverage and granularity              • Lacks needs &      • Limited            •      Expensive &
                                                   preference data      psychographic data        time-consuming
 Custom market research is highly                • Current customers in B2B                •      Self-report data is
                                       Limitations

 flexible but you must be willing to               only               • Poor accuracy             subjective
                                                 • Lacks competitor • Aggregated data •           May not provide
 make the investment of time and
                                                   data                 precludes accurate        accurate data on
 money                                           • Lacks data for new assessment at               past/future
                                                   product/ service     customer level            behavior
 The best approach leverages all                   offerings
 three data sources                              • Incomplete or poor
                                                   quality data

                                                     –7–                                  ©2012 MarketBridge Corp.
Question 2: What approach should we take to ensure the
customer segments accurately represent the market?
Business Experience
 Expert Knowledge     Top-Down vs. Bottom-Up Approaches:

                       Some companies take a “top-down” approach and define
                       segments based on business experience and expert
                       knowledge of the marketplace

                       If a “hypothesized” segmentation is not validated with
                       empirical data and analysis, the framework may be inaccurate
                       or misguided and the effort will ultimately fail


                       Other companies take a “bottom-up” approach and derive
                       segments through analysis of available data

                       If a purely “empirical” segmentation is not informed by
 Customer Data &
                       business experience and vetted with expert stakeholders, the
 Empirical Analysis    framework may not be insightful or actionable




                                     –8–                            ©2012 MarketBridge Corp.
Question 2: What approach should we take to ensure the
   customer segments accurately represent the market? (continued)

                               Top-Down vs. Bottom-Up Approaches:
         Business Experience
                                In our experience, it is optimal to use a combined approach to
          Expert Knowledge      identify and quantify market segments

                                Start by conducting in-depth interviews with front-line business
         Customer Data &        people to leverage their expertise and experience – use these
         Empirical Analysis     hypotheses to guide customer research
          Research
           Sample
                                Conduct primary research with customers and prospects to
Behavi
oralDa
  ta
             +       Survey
                      Data      get a first hand assessment of their needs and preferences

                                Test expert hypotheses with the customer research, but also
                                use statistical techniques (e.g., “cluster analysis”) to explore
                                the possibility of unanticipated market segments

                                Refine derived segmentation through qualitative customer
                                research and vet all findings with customer-facing business
                                stakeholders


                                               –9–                               ©2012 MarketBridge Corp.
Question 3: What criteria should we use to prioritize segments
and select targets?

To determine which segments to pursue in their marketing
programs, successful companies consider:
  Segment Size & Opportunity – How large is the segment? What
  financial opportunity does it provide given the segments’ needs and
  anticipated buying behaviors?o

  „Fit‟ with Brand & Value Proposition – Do the needs and preferences of
  the segment provide a good match to what you can offer them? Will the
  segment be receptive to your value proposition? Will they really buy from
  you?

  Engagement Strategy & Delivery – What is required to reach the
  segment and appeal to their needs? Is your organization able to deliver
  it?

  Competitor Positions – Understand competitor positions, market shares,
  and marketing strategies. Do you want to face the competition head-on or
  carve out your own niche?

In short, don’t just target the obvious segments with the greatest
financial appeal. Carefully weigh all considerations and develop a
balanced approach to selecting targets.


                                                – 10 –                        ©2012 MarketBridge Corp.
Question 4: How can we ensure that the segmentation is
operational?
 One of the greatest challenges of deploying a segmentation framework is
 ensuring that customers can be assigned to a segment at the database
 level.
 Accurate database assignment can be achieved through a combination of
 methods:
  Predictive models can be developed to assign customers into segments
  based on available descriptive and behavioral data
  Short lists of critical classification questions can be given to
  customers at key touch-points, such as sales or service calls

              Assignment Modeling                         Touch-Point Questions

                                          Customer
                                          Database


                                           Segment
                                      Assignment Scores
                         Refinement                       Validation




                                            – 11 –                                ©2012 MarketBridge Corp.
Question 5: How do we ‘land’ the segmentation within the
organization?
Based on our experience, we recommend clients do the following:
 Be Inclusive – Get buy-in from all key stakeholders
 Be Realistic – Ensure that you have the ability to implement the segmentation at the
 operational level
 Be Prepared – Have a solid change management plan and build formal mechanisms
 within planning, measurement, and performance-management processes to manage
 customer segments effectively
 Be Patient – Rolling out the segmentation takes time, set expectations accordingly
 Start Small – Execute pilot campaigns before full deployment
 Be Flexible – Modify the segmentation and/or targeting strategy if necessary – update to
 stay abreast of market changes
 Be Accountable – Create accountability for segment-specific results and empower
 segment "owners" with the authority to make key decisions




                                          – 12 –                          ©2012 MarketBridge Corp.
Case Study | Small-Business Segmentation for a North American
 Business Services and Supplies Company
Business Profile                Challenges

This large business services    Client was experiencing declining revenues
company provides various        due to digital product substitution. The
personalized products and       company needed to reignite revenue growth
services to small businesses,   through product line expansion and/ or
financial institutions, and     acquisitions, in addition to creating a broader
consumers.                      product portfolio to keep customers and
                                channels engaged and profitable. The
Industry                        company needed to understand the “right”
Business Services               SMB segmentation to ID both product needs
                                and target marketing and sales activities.

                                Client Approach
                                Develop a growth re-ignition program through
                                small business segmentation and value
                                strategy.



                                 – 13 –                          ©2012 MarketBridge Corp.
Case Study | Small-Business Segmentation for a North American
 Business Services and Supplies Company

MarketBridge Solution
   Leveraged secondary research, customer databases, and in-
   depth stakeholder interviews to develop an initial “straw man”
   segmentation                                                                    Segmentation
                                                                                      Model

   Evaluated and refined the segmentation model thru primary
   market research with over 1500 small businesses,
   assessing small business dynamics, attitudes, buying
   behaviors and channel preferences
                                                                             Assignment Modeling
   Identified priority segments based on size, revenue
   opportunity and alignment of customer needs with client
   service offerings
   Deployed segmentation across client databases, applying
                                                                                  Customer Database
   advanced predictive modeling to assign customers and
   prospects to their most probable segments
                                                                             Campaign Execution
   Developed integrated marketing strategies for targeting high-
   priority segments with optimal product and service offers        Direct Mail                         Inbound Tele


                                                                                        Email


                                             – 14 –                          ©2012 MarketBridge Corp.
Case Study | Small-Business Segmentation for a North American
Business Services and Supplies Company

Business Impact

  Created a unified, cross-portfolio market
  segmentation strategy and execution plan with
  estimated $5-8% annual revenue lift
  Identified specific product/service market “gaps” to
  be filled through line extensions
  Launched programs to validate and refine
  segmentation model in-market
  Developed ongoing management system &
  readiness plan to facilitate roll-out of the
  segmentation throughout the organization




                                             – 15 –      ©2012 MarketBridge Corp.
Thank You
Leslie Wilson
Principal, Analytics
415-577-6313
lwilson@market-bridge.com


Learn more:
Web: http://www.market-bridge.com/en/reporting-and-analytics/
Twitter: www.twitter.com/marketbridge




                 – 16 –                        ©2012 MarketBridge Corp.

More Related Content

More from MarketBridge

How to Improve Sales Productivity in 5 Steps: Digital Sales Coverage
How to Improve Sales Productivity in 5 Steps:  Digital Sales CoverageHow to Improve Sales Productivity in 5 Steps:  Digital Sales Coverage
How to Improve Sales Productivity in 5 Steps: Digital Sales Coverage
MarketBridge
 
Home Improvement Social Media Scoring
Home Improvement Social Media Scoring Home Improvement Social Media Scoring
Home Improvement Social Media Scoring
MarketBridge
 
The ultimate guide to the new buyers journey
The ultimate guide to the new buyers journeyThe ultimate guide to the new buyers journey
The ultimate guide to the new buyers journey
MarketBridge
 
Digital sales coverage, joe
Digital sales coverage, joeDigital sales coverage, joe
Digital sales coverage, joe
MarketBridge
 
5 Things B2B Marketers Need to Fear with Social Media
5 Things B2B Marketers Need to Fear with Social Media5 Things B2B Marketers Need to Fear with Social Media
5 Things B2B Marketers Need to Fear with Social Media
MarketBridge
 
Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...
Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...
Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...
MarketBridge
 

More from MarketBridge (6)

How to Improve Sales Productivity in 5 Steps: Digital Sales Coverage
How to Improve Sales Productivity in 5 Steps:  Digital Sales CoverageHow to Improve Sales Productivity in 5 Steps:  Digital Sales Coverage
How to Improve Sales Productivity in 5 Steps: Digital Sales Coverage
 
Home Improvement Social Media Scoring
Home Improvement Social Media Scoring Home Improvement Social Media Scoring
Home Improvement Social Media Scoring
 
The ultimate guide to the new buyers journey
The ultimate guide to the new buyers journeyThe ultimate guide to the new buyers journey
The ultimate guide to the new buyers journey
 
Digital sales coverage, joe
Digital sales coverage, joeDigital sales coverage, joe
Digital sales coverage, joe
 
5 Things B2B Marketers Need to Fear with Social Media
5 Things B2B Marketers Need to Fear with Social Media5 Things B2B Marketers Need to Fear with Social Media
5 Things B2B Marketers Need to Fear with Social Media
 
Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...
Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...
Crunching “Big Data” to Drive 2012 Revenue Growth: The 5 Myths of Sales & Mar...
 

Recently uploaded

Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024
FelixPerez547899
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
SabaaSudozai
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
Aleksey Savkin
 
Chapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .pptChapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .ppt
ssuser567e2d
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
my Pandit
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
NZSG
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
SalesTown
 
Digital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on SustainabilityDigital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on Sustainability
sssourabhsharma
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
SOFTTECHHUB
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Lacey Max
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
Corey Perlman, Social Media Speaker and Consultant
 
Mastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnapMastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnap
Norma Mushkat Gaffin
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
Chandresh Chudasama
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Kalyan Satta Matka Guessing Matka Result Main Bazar chart
 

Recently uploaded (20)

Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
 
Chapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .pptChapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .ppt
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
 
Digital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on SustainabilityDigital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on Sustainability
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
 
Mastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnapMastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnap
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
 

Making Customer Segments Matter

  • 1. Making Customer Segments Matter: Essential and Effective Principles for Proactive Customer Base Management March 20, 2012
  • 2. MarketBridge Overview Deep expertise and experience working closely with Fortune 1000 and emerging growth companies’ senior Marketing and Sales leaders to drive revenue growth by leveraging technology and strengthening empirical discipline. Customers Differentiators • 18 of the top 50 global B2B brands • Exclusive focus on revenue growth via new go- • Global Fortune 1000 corporations and to-market strategies and solutions emerging growth companies • View Marketing & Sales as an integrated • Considered-Purchase Products process • Enterprise, Mid-Market, and SMB Business • Leverage emerging technologies – social, Customers digital, CRM – with traditional Marketing • Executive Leadership team clients – CXO, capabilities and Sales channels Marketing, Sales • Empirical, analytical core competency • Strategy-to-execution-to-results Sample Clients across Technology, Financial and Business Services, and Healthcare –2– ©2012 MarketBridge Corp.
  • 3. Today’s Discussion Topics Context and Challenge Five Critical Questions in the Segmentation Process Case Study: Small Business Segmentation for a Business Services & Supplies Company –3– ©2012 MarketBridge Corp.
  • 4. What’s the Challenge? • As the marketplace develops, customer needs are becoming more specific and Challenge 1 fragmented • The gaps between the value of various customer segments is widening as the Challenge 2 market becomes more polarized • The growth of new distribution channels and marketing vehicles is making it Challenge 3 easier for all companies to engage customers with more targeted approaches • The availability of company-wide sales and marketing resources continues to Challenge 4 diminish Proactive Customer Base Management through Segmentation is More Important Now than Ever –4– ©2012 MarketBridge Corp.
  • 5. Where Does One Start? Five Critical Questions in the Segmentation Process: Undifferentiated Customer Base 1. What customer characteristics should we use to profile the market segments? 2. What approach should we take to ensure that the segments accurately represent the market but are also actionable? 3. What criteria should we use to prioritize segments and select targets? Segmentation Process 4. How can we ensure that the segmentation is operational and can be deployed in our marketing activities? 5. How do we „land‟ the segmentation within the organization and ensure that it gains traction? –5– ©2012 MarketBridge Corp.
  • 6. Question 1: What customer characteristics should we use? Firmographics / Demographics Buying Behavior Attitudes / Preferences • Descriptive information about • ‘Hard’ data on purchase • ‘Soft’ data on preferred customers such as company history for specific products product / service features, size, industry or about the and services, average channel preferences and decision-makers themselves, expenditures, frequency of attitudes or opinions that including job role, breadth of purchase, and other influence the purchase responsibility, etc. behavioral factors process In our experience, most successful Who? segmentations incorporate a range of What? descriptive, behavioral, and psychographic Where? dimensions When? Why? Divergent forms of information provide insight into who is buying, what they’re buying, where and when they are buying, and perhaps most importantly, why they are buying –6– ©2012 MarketBridge Corp.
  • 7. Question 1: What customer characteristics should we use? (continued) Finding the Right Data Sources: Prospect Your company database may not Database Customer Database be adequate if using the segmentation to guide entry into Company Databases Syndicated Data Primary Market Research new markets or to market new • Firmographic & • Firmographic & • Psychographic products/ services behavioral data data behavioral data Benefits • Known data quality • Augments depth & • Highly customized Syndicated data can be used to • High granularity breadth • Very granular augment existing customer records, • Covers current • Covers prospects • Covers entire but still fall short in terms of customers market accuracy, coverage and granularity • Lacks needs & • Limited • Expensive & preference data psychographic data time-consuming Custom market research is highly • Current customers in B2B • Self-report data is Limitations flexible but you must be willing to only • Poor accuracy subjective • Lacks competitor • Aggregated data • May not provide make the investment of time and data precludes accurate accurate data on money • Lacks data for new assessment at past/future product/ service customer level behavior The best approach leverages all offerings three data sources • Incomplete or poor quality data –7– ©2012 MarketBridge Corp.
  • 8. Question 2: What approach should we take to ensure the customer segments accurately represent the market? Business Experience Expert Knowledge Top-Down vs. Bottom-Up Approaches: Some companies take a “top-down” approach and define segments based on business experience and expert knowledge of the marketplace If a “hypothesized” segmentation is not validated with empirical data and analysis, the framework may be inaccurate or misguided and the effort will ultimately fail Other companies take a “bottom-up” approach and derive segments through analysis of available data If a purely “empirical” segmentation is not informed by Customer Data & business experience and vetted with expert stakeholders, the Empirical Analysis framework may not be insightful or actionable –8– ©2012 MarketBridge Corp.
  • 9. Question 2: What approach should we take to ensure the customer segments accurately represent the market? (continued) Top-Down vs. Bottom-Up Approaches: Business Experience In our experience, it is optimal to use a combined approach to Expert Knowledge identify and quantify market segments Start by conducting in-depth interviews with front-line business Customer Data & people to leverage their expertise and experience – use these Empirical Analysis hypotheses to guide customer research Research Sample Conduct primary research with customers and prospects to Behavi oralDa ta + Survey Data get a first hand assessment of their needs and preferences Test expert hypotheses with the customer research, but also use statistical techniques (e.g., “cluster analysis”) to explore the possibility of unanticipated market segments Refine derived segmentation through qualitative customer research and vet all findings with customer-facing business stakeholders –9– ©2012 MarketBridge Corp.
  • 10. Question 3: What criteria should we use to prioritize segments and select targets? To determine which segments to pursue in their marketing programs, successful companies consider: Segment Size & Opportunity – How large is the segment? What financial opportunity does it provide given the segments’ needs and anticipated buying behaviors?o „Fit‟ with Brand & Value Proposition – Do the needs and preferences of the segment provide a good match to what you can offer them? Will the segment be receptive to your value proposition? Will they really buy from you? Engagement Strategy & Delivery – What is required to reach the segment and appeal to their needs? Is your organization able to deliver it? Competitor Positions – Understand competitor positions, market shares, and marketing strategies. Do you want to face the competition head-on or carve out your own niche? In short, don’t just target the obvious segments with the greatest financial appeal. Carefully weigh all considerations and develop a balanced approach to selecting targets. – 10 – ©2012 MarketBridge Corp.
  • 11. Question 4: How can we ensure that the segmentation is operational? One of the greatest challenges of deploying a segmentation framework is ensuring that customers can be assigned to a segment at the database level. Accurate database assignment can be achieved through a combination of methods: Predictive models can be developed to assign customers into segments based on available descriptive and behavioral data Short lists of critical classification questions can be given to customers at key touch-points, such as sales or service calls Assignment Modeling Touch-Point Questions Customer Database Segment Assignment Scores Refinement Validation – 11 – ©2012 MarketBridge Corp.
  • 12. Question 5: How do we ‘land’ the segmentation within the organization? Based on our experience, we recommend clients do the following: Be Inclusive – Get buy-in from all key stakeholders Be Realistic – Ensure that you have the ability to implement the segmentation at the operational level Be Prepared – Have a solid change management plan and build formal mechanisms within planning, measurement, and performance-management processes to manage customer segments effectively Be Patient – Rolling out the segmentation takes time, set expectations accordingly Start Small – Execute pilot campaigns before full deployment Be Flexible – Modify the segmentation and/or targeting strategy if necessary – update to stay abreast of market changes Be Accountable – Create accountability for segment-specific results and empower segment "owners" with the authority to make key decisions – 12 – ©2012 MarketBridge Corp.
  • 13. Case Study | Small-Business Segmentation for a North American Business Services and Supplies Company Business Profile Challenges This large business services Client was experiencing declining revenues company provides various due to digital product substitution. The personalized products and company needed to reignite revenue growth services to small businesses, through product line expansion and/ or financial institutions, and acquisitions, in addition to creating a broader consumers. product portfolio to keep customers and channels engaged and profitable. The Industry company needed to understand the “right” Business Services SMB segmentation to ID both product needs and target marketing and sales activities. Client Approach Develop a growth re-ignition program through small business segmentation and value strategy. – 13 – ©2012 MarketBridge Corp.
  • 14. Case Study | Small-Business Segmentation for a North American Business Services and Supplies Company MarketBridge Solution Leveraged secondary research, customer databases, and in- depth stakeholder interviews to develop an initial “straw man” segmentation Segmentation Model Evaluated and refined the segmentation model thru primary market research with over 1500 small businesses, assessing small business dynamics, attitudes, buying behaviors and channel preferences Assignment Modeling Identified priority segments based on size, revenue opportunity and alignment of customer needs with client service offerings Deployed segmentation across client databases, applying Customer Database advanced predictive modeling to assign customers and prospects to their most probable segments Campaign Execution Developed integrated marketing strategies for targeting high- priority segments with optimal product and service offers Direct Mail Inbound Tele Email – 14 – ©2012 MarketBridge Corp.
  • 15. Case Study | Small-Business Segmentation for a North American Business Services and Supplies Company Business Impact Created a unified, cross-portfolio market segmentation strategy and execution plan with estimated $5-8% annual revenue lift Identified specific product/service market “gaps” to be filled through line extensions Launched programs to validate and refine segmentation model in-market Developed ongoing management system & readiness plan to facilitate roll-out of the segmentation throughout the organization – 15 – ©2012 MarketBridge Corp.
  • 16. Thank You Leslie Wilson Principal, Analytics 415-577-6313 lwilson@market-bridge.com Learn more: Web: http://www.market-bridge.com/en/reporting-and-analytics/ Twitter: www.twitter.com/marketbridge – 16 – ©2012 MarketBridge Corp.