Customer segmentation involves defining customer segments and assessing behaviours by tapping into external market research and analysing existing business insights to ensure a deeper understanding of all aspects of your existing and target customers. Intricately understanding customer segments, and their related behaviours and needs, will enable your business to optimise current business offerings and inform strategic business decisions such new client targeting and acquisition strategies.
Fuel growth through Customer Segmentation
Customer Segmentation equips your management team with the ability to holistically understand your business’s customer base and establishes a foundation
for analysing existing offerings and informing strategic business decisions, such as expansion into new products, channels and markets.
There are two varying approaches to Customer Segmentation:
PUBLICLY AVAILABLE MARKET DATA
Segmentation based on publicly available market data focuses on the industry in which your business operates and seeks to create or refine distinct clusters within the market. This analysis is based on indicated characteristics, needs and behaviours for the products or solutions being offered.
PROPENSITY MODELLING
Propensity modelling is a method of sizing and prioritising a target market by integrating data from various divisions within your business, across the existing customer base. This segmentation approach helps to identify customer behaviours that are key drivers for your business over the determined period.
Both approaches are extremely valuable, especially when conducted in tandem. Since segmentation assists in the identification of how to acquire, retain and grow certain groups of customers at a detailed level, it is informed by behavioural and product data analytics.
Get a focused sales strategy through Customer Segmentation
To grow a business efficiently and effectively it is important to focus on a sales strategy that targets a specific cluster of customers whose needs and behaviours are best suited to the solutions your business offers. The key to honing down your target market lies in the customer segmentation process which will assist you to determine relevant product and pricing strategies, channel solutions and customer engagement.
Holistically, customer segmentation is imperative for your business as it can be used for:
- Understanding and segmenting the overall market opportunity and size.
- Evaluating customer segments for targeted activity.
- Identifying groups of customers which require greater focus
- Spotting gaps in the market.
- Determining appropriate products, services and marketing approaches for different customer segments.
- Isolating a niche section of the market for a unique opportunity and pinpointing the likely reaction of that given customer group.
Focused view
By tapping into Step Advisory’s insightful analysis you and your business will gain a focused single view of your customer and a deeper understanding of their characteristics and behaviour. This information is often difficult to discern through an analysis of company data, but we shine a light on the gems hidden in these datasets by applying an efficient process that unearths value from complex data relationships.
How can we help your business?
- Gaining an understanding of your business’s need for existing and potential customer insights.
- Gathering, analysing, and reviewing customer data, including products purchased, channels used and trends followed, using market available data and internally generated data.
- Guiding and structuring the segmentation according to your business’s objectives.
- Developing a strategy to better serve your customers, based on the determined size, segmentation and requirements of the base.
We work collaboratively with you to extract insight from the customer analysis that will aid key management decisions, in addition to completing a desktop analysis of existing and potential customers. In certain instances, our team may engage directly with selected customers through an interview or survey process and collaborate with industry experts where relevant.