To find your best customer, we first find out what you want to accomplish at the moment. We can help you identify different types of customers to meet your goals. For example, do you want:
- More customers like my current ones: Top-line growth
- Only new customers who will spend the most: customer-yield growth
- My competitors' customers: share grab
- Only my most loyal customers: defend the base
- All of the above: long term growth
- Or some combination of the above
Reaching each type of customer may require a different campaign strategy.
Traditionally, customer segments have been defined using general demographics like: "women aged 25 to 54 with children and at least $75,000 in household income." The problem with relying too heavily on broad demographics is that casting such a wide net invites a lot of waste. The shopping habits of most women fitting this demographic description will not be similar.
For the most precise results we recommend an analysis of your customer database. Hidden in those records are clues about:
- The types of people most likely to purchase your product or service based on the market position your firm enjoys
- The highest value geographies within your trade area
When optimizing a segmentation solution it is crucial to consider such real world conditions as:
- Competitive pressures
- Travel distances
- Time of year
- Economic conditions
Depending on your industry; we may derive either a set of location/region-specific segments or single "global" solution which would then take into account all customer records.
To determine the appropriate level of granularity for the segmentation solution we urge clients to consider the following three considerations:
- Do I believe my customer base varies based on the locations/regions that I do business in?
- Are there material differences across my company's locations/regions regarding both top line revenue as well as customer volume?
- Does time of year affect sales across my locations/regions differently?