Upload
christyaron
View
100
Download
0
Tags:
Embed Size (px)
Citation preview
Targeting, Segmentation and Messaging Approaches for Marketing and Sales Effectiveness
Christy Aronson [email protected]
www.linkedin.com/in/christyaronson/
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.
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
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
Expansion of an Integrated Approach Beyond marketing and sales, we need to consider other drivers of cost that impact profitability and lifetime value.
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
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
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.
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.
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
Defining our Target Market Before we do any segmentation, we must first look at our target market and confirm our priorities.
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
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
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.
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)
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
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.
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
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
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.
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
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
Customer Segmentation Project Plan
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 Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
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.
ü Refocuses teams on the customer (vs the transaction) ü Reinforces the Voice of the Customer ü Provides an easy way to embed customers into daily activities ü Puts a face to a customer segment
ü Adds weight to the broader organization as to which segments are the most valuable and how to approach them
ü Supports agreement on a shared vision of who customers are ü Can be further customized as understanding of customers evolves
ü Provides actionable information that business areas can plan/act on ü Supports a broader effort for an understanding of the customer
experience and the multi-touchpoint view of how the customer interacts with us
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
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.
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.
Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
Personas Project Plan
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 Christy Aronson [email protected] www.linkedin.com/in/christyaronson/
Thank you. Please contact me for more information
Christy Aronson [email protected]
www.linkedin.com/in/christyaronson/