Customer Segmentation Actions  

Customer Segmentation and Profiling

Customer Segmentation and profiling is the first step before we decide on how to retain, satisfy and maximize their profitability.

Customer Segmentation Actions

A customer segment can drive actions across various functions like product development, sales approach and services management. However, one does not need to come with lot of independent actions.

This is not as obvious as it seems. There are many applications of customer segmentation which go beyond marketing, sales and products.

When we do customer segmentation, our premise and/OR our action is to do with one of the following area (OR a combination). This should not sound so complex. Typically a customer segment invokes a string of actions which run across the below mentioned list. For example a low-income group customer will invoke inexpensive products, inexpensive sales channel, inexpensive delivery mechanisms, and low-cost service options. Therefore in real life it is not a 50 (areas to act on given a segment) X 50 (customer segment) matrix on the actions you will take.

Customer Segmentation & Profiling triggers actions around the following areas:


  • Product Specifications- Align the specifications of the product as per the need of the customer. For example- You ability to play different video formats on your mobile for younger age customers.
  • Product pricing- product price as per what customer can OR will be ready to pay. For example- Make premium pricing for products positioned for high net-worth individuals.
  • Product packaging and positioning: For example, you will like to have jazzy and flashy packaging for products aimed at younger audience.


  • Advertising and sales promotion: For young generation, advertise more on the web on community and social network websites.
  • Sales Material: If you are selling life insurance products, you will avoid flashy sales kit.
  • Brand Management: The brand personality of your product for a given customer segment should be aligned.


  • Sales channel acquisition: low cost channel for low value customer segments..
  • Sales scripts and training: talk about children education and marriage for a customer who is employed and 35+ years of age..
  • Leads Management: Prioritize leads from potential high-income and high value customers..
  • Sales outlets and presence: High-end, well furnished outlets in high-end locations for high net-worth.
  • Up-sell and cross-sell: Up-sell and cross sell products given the customer segment. You will not sell loan products to a customer who has been having a less than adequate repayment history.

Order Fulfillment

  • Order delivery: For HNI customers, you may like to have the product delivered to their home.

Post Sales

  • Customer Service: Internet based service for low-ticket products, and relationship face to face service for large value customers.
  • Product support and maintenance: Onsite service and repair for higher value customers.