Business Analytics for Sales and Marketing Managers: How to Compete in the Information Age

OTHER CONSIDERATIONS

In general, a segmentation model, like most other tools, is only as good as those who use it. Therefore, if you are responsible for developing a segmentation model, the first thing you should consider is who could potentially use it. The exercise is relatively simple. First, sit down with an organization map and identify all the different functional areas and processes. For each of these potential users, brainstorm how customer segmentation could add value to each individual functional area or process. After you finish this homework, start setting up meetings with existing and potential stakeholders, and agree on what they really want. One stakeholder that should be of particular interest is the strategic department; if it adapts your way of doing segmentation, your organization will become increasingly customer centric in its future method of going to market. The strength of a top-down implementation is that since a company strategy is signed off by top management, you will automatically get their buy-in. Thus, you have taken a first step into treating your customers consistently across all channels (which is an absolute basic in marketing). If your segmentation is based on DW information, you will also be able to report monthly on each segment in terms of how many new customers you get, turnover, complaints, how many leave you; this is essential feedback to the strategy department. The saying “You can’t manage what you can’t measure” therefore becomes very ...