An approach to optimizing marketing and sales and achieving profitability

1. Targeting, Segmentation and Messaging Approaches
for Marketing and Sales Effectiveness
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/

2. The Promise of Integrated Marketing and Sales
To profitably acquire and retain customers, we must employ an integrated marketing
and sales approach that enables us to consistently delivery messages and consumer
experience across all media and interaction channels.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Consumer
Intelligence
Market
Intelligence
Analytics
Value
Proposition
Messaging
Actionable
Insights
KPIs
Acquisition
& Retention
Strategy
Channel
Strategy
Targeting &
Segmentation
Voice of
the
Customer
ROI
Profitability &
Customer
Lifetime Value
Product, Pricing
& Service
Excellence

3. Expansion of an Integrated Approach
Beyond marketing and sales, we need to consider other drivers of cost that impact
profitability and lifetime value.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Product
Innovation
Distribution
Channel
Management
Marketing &
Advertising
Sales
Customer
Service
Account
Management
Customer
Segments
• Optimize brand equity
• Leverage the optimal mix
of marketing channels
aligned to customer
segment
• Refine account
management strategies
• Offer enhanced
services to select
customers
• Manage at risk
customers
• Improve renewal
process
• Expand share of wallet
• Develop reference able
clients
• Improve overall
customer service
• Expand self-service
capabilities
• Focus selling resources on selected
customer segments
• Drive sales effectiveness through the
right mix of people, processes and tools
• Segment/select the right channels
with proper balance of direct and
indirect
• Improve the efficiency and
effectiveness of sales channels
• Tailor marketing and sales
approaches
• Expand/adapt offerings to meet
customer needs
• Offer value added packaging/bundling
• Proactively manage pricing
• Improve collaboration with internal
stakeholders
• Increase speed-to-market and
innovation
• Segment customers and identify personas according to
needs and behaviors
• Align products to segments/personas
• Devise value propositions and messaging for each persona
Profitability &
Customer
Lifetime Value
cost to serve
profitability
satisfaction
ROI
growth
lead conversion
innovation
retention
cross-sell
collaboration
responsiveness
velocity
channel mix
cost of sales

4. How do we create an integrated marketing and sales model?
We need to start with a robust understanding of the customers we serve, their needs,
experiences and attitudes. Segmentation, if done correctly, can get us moving in the
right direction. However, many companies fail at deploying successful segmentation
models.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Segment: A subset of the target market,
defined as a group of people who share
similar characteristics and preferences.
•Demographics
•Behaviors
•Beliefs & attitudes
Addressable Market: The defined population of
prospective and existing customers.
Target Market: A subset of the addressable market that
a company decides to target for acquisition and
retention.
Persona: A completed persona
will typically include segment
data as well as specific
situational goals and aligned
value proposition and messages
•Product needs
•Service needs
Projects that stop at segmentation don’t go far enough to make
the segmentation model actionable. Consistency of message is a
key differentiator of successful segmentation models.

5. Defining our Target Market
Before we do any segmentation, we must first look at our target market and confirm
our priorities.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
1. New Customers (Acquisition-New)
Consumers who currently do not currently buy these
products, from us or our competitors
2. Current Customers, Same Product (Retention)
Consumers who are already our customers and buy this
set of products
3. Current Customers, Different Product (Migration)
Consumers who are already our customers but buy
from a different product line
4. Competitors’ Customers (Acquisition-Conversion)
Consumers who buy this product from a competitor
Employ acquisition and retention strategies
aimed at consumer segments and personas

6. Why do we need to segment?
Segmentation is a process that groups customers according to similar needs,
preferences and/or behaviors. Segmentation allows the development of differentiated
value propositions customized to the needs of a particular customer segment and
persona.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Sales &
Marketing
Products &
Services
Support
Needs
Customer
Value
To understand
how to reach
the customer
To understand
what products
and services
the customer is
looking for
To understand
the customer’s
support needs
(e.g. online,
phone, web,
broker)
To understand
the value of the
customer
(e.g. profitability)

7. Segmentation Approaches
Segmentation maturity models emphasize a crawl-walk-run approach by evolving the
complexity of the model over time. Some organizations that leapfrog to an attitudinal
approach do not know how to make it actionable.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
LEVEL
1
LEVEL
2
LEVEL
3
LEVEL
4
Needs Based
Segmentation based on Level 1 and 2 plus product needs/attributes
and service/tools needs
Attitudinal
Segmentation based on Levels 1-3 plus brand loyalty,
attitudes and beliefs, preferences for interaction,
switching factors, price sensitivity, satisfaction
Behavioral
Segmentation based on Level 1 plus purchase frequency, funnel stage gates, funnel
velocity (cycle time), product usage, and services/tools used
Customer Characteristics
Segmentation based on products purchased and demographics

8. Segmentation Approaches
Different approaches apply for different situations. The chosen approach will be
determined by an in depth data analysis and result in a meaningful set of customer
value propositions.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Pros Cons Best Uses
• Provides a more
complete view of
how to approach
customers
• Not measurable
• Difficult to access
• Difficult to link to
external data
• Requires investment
tools to capture VOC
• Retention
• Product dev
• Brand strategy
• Broad acquisition
• Provides a good
understanding of
how products and
services address
needs
• Difficult to access
• Requires investment in
customer sat tools
• Product dev
• Mktg & sales strat
• Service
• Measurable
• Actionable
• Outcomes are
tracked
• Activities leading to a
decision is sometimes
hard to track
• Targeted acquisition
& retention
• Mktg & sales strat
• Historical analysis
• Service
• Measurable
• Easy to access
data
• Hard to link to
behavior
• Retention
• Targeted acquisition
• Service

9. Customer Segmentation Project Plan
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Description
Review existing
segmentation model and
define objectives for
new/updated model
Gather data and define
segmentation variables
Group customers based
on key elements
Define segment
characteristics
Primary Activities
• Validate objectives and
identify performance
levers
• Review current
segmentation models
• Research segmentation
best practices
• Define hypotheses
• Identify analytical
methodology and data
requirements
• Define segmentation
parameters
• Identify internal and
external data sources
• Collect external data
• Collate internal and
external data into an
integrated data set for
analysis
• Identify segment drivers
and customer
differentiation factors
• Perform analysis to
group customers with
similar characteristics
• Evaluate segmentation
model fit vs objectives
• Classify customers into
preliminary segments
• Finalize segmentation
• Identify characteristics
of each segment
• Profile segments based
on key variables and
analysis insights
• Validate or reject
segmentation
hypotheses
• Review segmentation
profiles with client
stakeholders
Deliverables
• Validated business
objectives
• Well-defined
hypotheses
• Analysis methodology
• Segmentation
parameters
• List of all data sources
• Integrated database
• Final segmentation
scheme
• Segment profiles
• Validated hypotheses
Resulting segmentation
should then be used to
define personas

10. Why create personas?
Personas enable greater customer intimacy and better decision making aimed at the
customer experience. This process needs to result in a set of messages that will
resonate for each persona.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
 Refocuses teams on the customer (vs the transaction)
 Reinforces the Voice of the Customer
 Provides an easy way to embed customers into daily activities
 Puts a face to a customer segment
 Adds weight to the broader organization as to which segments are the
most valuable and how to approach them
 Supports agreement on a shared vision of who customers are
 Can be further customized as understanding of customers evolves
 Provides actionable information that business areas can plan/act on
 Supports a broader effort for an understanding of the customer
experience and the multi-touchpoint view of how the customer
interacts with us

11. What are personas?
Personas are a way of bringing consumers to life. Defining robust key messages will
help marketers and sales people to convey a compelling value proposition.
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Example Persona
Mary
Mary is a young mother who struggles to make ends meet for her two young children. She didn’t
graduate high school and is a part time house keeper. She lives close to family and is part of a tight-
knit community that helps each other out as best as they can. She dreams of going back to finish
school, but that dream seems unattainable.
Age 17 - 25
Gender Female
Race White/Caucasian
Income $20,000 - $30,000
Lifestyle
Behaviors
Does not work out; eats
fast food on the run
Technology Does not have personal
computer or high-speed
internet, owns a cell
phone, communicates via
text message
Quotes:
“What will happen to my kids if something happens to me?”
“My employers are cutting back the frequency that they need me to
work, and I worry about paying the bills.”
“I watch other families at the park who seem to have no cares. Maybe
if I went back to school I could get a better job.”
“Given the time I spend cleaning other people’s houses, I sometimes
feel overwhelmed by the things I need to do to keep my own life in
order.”
Key messages:
“We can help you take better care of yourself.”
“There are a variety of products at different price points, features and
benefits.”
This
section
should
be built
out in
great
detail.

12. Personas Project Plan
Christy Aronson
christy_aronson@yahoo.com
www.linkedin.com/in/christyaronson/
Description
Assess current segmentation and
supplement with Voice of the
Customer
Develop personas to describe all
aspects of how a person in a given
segment looks, feels and acts
Develop and execute a plan for
implementing personas and
embedding them in appropriate
operational areas
Primary Activities
• Understand current segments as
a starting point for developing
personas
• Complement existing data by
integrating the Voice of the
Customer
• Set objectives and priorities (e.g.
which areas will personas be
used?)
• Conduct field studies with
segments to gather insights on
aspirations, beliefs, attitudes,
values, goals, needs, behaviors,
socioeconomic factors and life
stage
• Utilize data gathered to
generate persona descriptions
that offer a glimpse of their
personalities
• Bring personas to life with
vignettes
• Ensure that personas effectively
define a seamless customer
experience
• Plan the execution and
integration of personas into the
company’s strategy, culture,
processes, and infrastructure
• Communicate how personas are
to be used by different business
areas
• Develop process for ongoing
maintenance and review of
segments and personas
• Execute persona targeted
initiatives
• Develop persona specific
dashboards
Deliverables
• Consolidated data including
Voice of the Customer
• Analysis of consumer behaviors,
needs
• Personas described and detailed
• Key messages aimed at each
persona for marketing, sales and
service purposes
• Implementation and
maintenance plan
• Communication plan and
materials
• Dashboards and reporting