Customer Segmentation and Profiling

Customer Segmentation and Profiling

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

Topics in Customer Segmentation and Profiling : -

What is Customer Segmentation?

Customer segmentation firstly has to define on what do we mean by the customers, and also what should be and should not be done in customer segmentation.

Customer Segmentation Parameters

Customer segmentation can be done on multitude of parameters, This is just an indicative list. The key is to make sure that you are focusing on the parameters which are important for your business. One should avoid the trap of making customer segmentation too complex an exercise.

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.

Customer Segmentation approach

This is just a high level statement on the approach, and some cautions along with. In customer segmentation, one has to be prudent to maintain a balance on the level of segment. One also has to know early on the invalid or irrelevant segments.

Customer Segmentation Data Management

Customer segmentation analysis has to manage the internal data on existing customers as well as the external data on prospects. The external data has a challenge of being dirty and in diverse formats. Most of the data management issues are linked to managing the external data.

Customer Segmentation Analytics and Business Intelligence

Customer segmentation related analysis does not have an urgency of running a business. Therefore, it may be missed out in comparison to sales analysis or supply chain analysis. Once segmentation is done, it is done again after a gap of at least a year. A regular analysis, will help you to validate your assumptions and also throw some signals on how the customers are moving across the segments.