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Customer segmentation

A customer segmentation allows you to drive sales force behaviour strategically and increase the overall profitability and sustainability of the business by creating a customer hierarchy and focusing on specific groups.

But how do we translate the theoretical considerations into business reality? Organisations face the challenge of bringing into alignment three core objectives: serving the customer, remaining flexible in the market and maintaining a sustainable cost structure. Our approach helps in balancing the three by weighing customer investments, relationship commitment and cost of flexibility against each other.

Who should you focus on?

In addition to our qualitative customer segmentation offerings, our Analytics team is equipped to provide a comprehensive quantitative assessment on your current customer base. Hundreds of customer attributes can be distilled and re-organised to develop a single view of customers by product, channel, scenario, segment and transaction. Based on our experience, this is a significantly more granular view of customers than our clients usually have in place and provides valuable insights. By identifying multifaceted customer segments based on in-depth analytics, we have helped our clients target their sales efforts and achieve a multiple of the revenue generated through traditional customer segmentation.

Why this level of granularity now?

Changes in customer characteristics and market structures require an appropriate response. Our deep dive into available data allows you to offset the challenges brought about through more sophisticated, empowered and demanding customers on the one hand, and increased competition, fragmentation and market expectation on the other.

Customer segmentation

Value proposition development and service offering alignment

Commercial success is heavily dependent on offering customers the right products and services. It is therefore crucial to identify customer segmentation based on customer, stakeholder and channel value and understand the different levels of importance of customers to the business.

Market leading companies usually operate against the background of a comprehensive customer segmentation concept. They structure customer profiles based on buying behaviour, pricing and profitability performance and other characteristics. This segmentation framework forms the basis for specific offerings built around loyalty drivers, willingness to pay and purchasing patterns, allowing the company to systematically develop and adapt intended value propositions with tailored service offerings, position value adding services and adapt packages to market conditions and local regulations.

We have successfully devised value proposition frameworks in the past. When can we support you?

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