Effective business development strategies most often begin with customer segmentation. Typically for developing customer segmentation, profitable customers and non-customers with similar characteristics are grouped. These characteristics include demographic as well as economic attributes which drives their purchasing power.
The strategy grid will help you in making strategic decisions for each of your customer segments:
However, organizations must figure out the most relevant characterstic for their growth. Different customer segments respond to different value propositions and require different strategic approaches. When properly used, segmentation helps you allocate resources throughout all levels of your organization to create a value proposition that uniquely serves your target customer groups.
Effective segmentation drives revenue growth through increased ability to meet customers' demands. Its greatest impact is on the top line, growing the number of customers, the amount of sales per customer and lifetime value of the customer.
Organizations paying attention to customer segmentation are reaping rewards because it can contribute to success far beyond determining its next marketing promotion. A comprehensive, dynamic, multidimensional approach will help ensure organizations know their customer and are equipped to fully take advantage of what they learn about their customers, to serve them better. Identifying the customer segments is like winning half the battle, the other half is implementing the segmentation model within the organization and articulating the strategy to pursue new markets.
Our segmentation and profiling solutions enable you to understand the distinct needs, buying behavior and attitudes of your customers. Using the insights from our segmentation analysis you can make segment specific strategies that will enhance profit per customer.Contact CRM expert
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