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Presented by Vicky Brock, CEO
May 2015
Are you currently targeting different groups of customers in different ways?
What do you want to achieve from this session?
What challenges are you facing?
Why segment customers?
What are the commercial benefits?
How do you create a relevant and workable segmentation?
How do you make the segmentation work and endure in the organisation?
What are the commercial benefits?
Retain more
revenue
Cut costs and
wastage
Improve customer
experience & lifetime
spend
Optimise profits
Because not all customers are equally profitable
What are the business goals?
“... increase revenues net of returns, reduce returns ...”
What are the customer behaviours associated with the goal?
18-25
26-3536 - 54
55+
So what?This is poor segmentation - inactionable
Fraud - returns 95% of all items bought
Disappointed loyal - returns under
20% of items + high attrition rate post
returnExplorer - Returns 21% - 40% of items + low attrition rate
post return
Overbuyer - returns between 75% and 94% of all items
Good segmentationActionable
When you know the behaviours you can find the right data :
Sales
Satisfaction
Order history (recency, frequency, value)
Payment type
Channel type, devices used
•Aligned to goals
• Embodying or affecting behaviourRelevant
• Sufficient commercial impact
• Enough individuals to justify time and costs of targetingSizeable• Distinguishable from other segments
• Can be served by an equally differentiated marketing or service strategy
Distinct
• Can be identified and serviced efficiently
• Reachable by marketing channels currently or potentially availableAccessible
•Has a specific, consistent and measurable characteristicsIdentifiable
Aligned to goals and KPIs
Senior champion
Customer advocate
Quick wins
Show the money £££££ (fear & greed!)
The power of faces –personas, customer profiles, customer stories ...
Ongoing measurement & results sharing ...
Show the money ££££ & the cost of doing nothing ...
