某咨詢市場營銷cusomersegmenaion

Author: LairdReedContributors:BarbaraBilodeau, DorieKrawiec

bcSegmentationCustomerMarch1998Copyright?1998Bain&Company,Inc.1customersegmentation.PPT

ThecustomersegmentationconceptApplicationsCustomersegmentationsteps segmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda2customersegmentation.PPT

ThecustomersegmentationconceptApplicationsCustomersegmentationsteps segmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda3customersegmentation.PPTCompetitorsCustomerSegmentationPurchaseCriteriaRating(ImportanceAnalysis)CompanyPositioning(EffectivenessAnalysis)AttractivenessAnalysisValuePropositionDevelopmentCustomerRetentionandLoyaltyCustomerAcquisitionCustomers

ToidentifycostreductionopportunitiesCustomersegmentationisanimportanttoolforcustomeranalysis.CostCapabilitiesStrategicPurpose:Tools:ToidentifyrevenueandprofitmaximizingstrategiesToachievedifferentiationandtopreemptcompetitors’movesTodeterminethestrategiesthatfitbestwithacompany’scorecompetenciesContext4customersegmentation.PPT*Insomecases,therewillbeonlyonetargetsegmentCustomersegmentationisaprocessofidentifyinghomogeneousgroupsofcustomers.Oncecustomershavebeensegmented,acompanychoosestargetsegmentsandapproacheseachsegmentwithavaluepropositionthatmeetsthesegment’sneeds.EachcustomersegmentdescribesahomogeneousgroupofcustomersSegmentcustomers

(existingandpotential)Choosetargetsegments*Createvalueproposition

foreachtargetsegmentDetermineprofitpotentialTargetsegmentsarethemostattractivecustomersegmentsforagivencompanytofocusonAvaluepropositionisthecombinationofproduct,service,anddeliveryofferedtothecustomerThepotentialprofitfromservingthetargetsegmentswithproposedvaluepropositionsmustbedeterminedTheProcess5customersegmentation.PPT

Customersegmentationisvaluablebecauseallcustomersarenotcreatedequal.EachcustomersegmenthasauniquesetofneedsandrequiresitsownvaluepropositionTheprofitpotentialdiffersbycustomersegmentCustomersegmentationhelpscompaniesfocusscarceresourceswheretheycanbemostleveragedWhyDoCustomerSegmentation?6customersegmentation.PPT

ThecustomersegmentationconceptApplicationsCustomersegmentationsteps segmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda7customersegmentation.PPT

Customersegmentationisusefulforbothcustomerretentionandcustomeracquisition.SegmentcustomersChoosetargetsegmentsCreatevaluepropositionforeachtargetsegmentRetaintargetcustomersAcquiretargetcustomersRetentionandAcquisition8customersegmentation.PPT

Baincaseteamshaveusedcustomersegmentationto:IdentifygapsorredundanciesintheproductportfolioScreenoutunacceptablenewproductsChooseproductfeaturesDetermineproductpricingEstablishappropriateserviceoptionsDetermineoptimaldistributionstrategyAdviseonadvertisingstrategyApplications(1of2)9customersegmentation.PPT

AlargeEuropeanbeermanufacturerwasfacedwithincreasingcompetitionandlowmarketgrowth.Bainusedsegmentationtoidentifyproductportfoliogapsanddetermineoptimalpositioningfornewandexistingbrands.Thisresultedinan8%marketshareincrease.Aninternationalcosmeticscompanywantedtoidentifyopportunitiesinthehighgrowthskincaremarket.ABainteamidentifiedunmetconsumerneedsforanti-agingcreamsandproposedanoptimalstrategyfortargetingtheappropriatecustomers.Thisresultedinapproximately$145MMinvaluecreation.Bain’scustomersegmentationworkhasbroughtsignificantresultsformanyclients.ExamplesofBain’sworkinclude:Applications(2of2)10customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda11customersegmentation.PPTChoosesegmentationmethod(needs-based,behavioral,ordemographic)basedonunderlyingissuesProcess:Tips:Choosetargetsegmentsbasedonattractivenessandabilitytoserveinadifferentiatedway(insomecases,therewillbeonlyonetargetsegment)Createvaluepropositionsbasedoncustomerneeds(eachtargetsegmentrequiresitsownvalueproposition)DeterminetherevenueandcostimpactsofofferingtheproposedvaluepropositionstothetargetsegmentsSegmentsshouldbemeaningfulMECE(onlyonesegmentpercustomer)measurablesubstantialactionableAttractivenessisbasedonprofitpotential(revenuepotentialandcosttoserve)Abilitytoserveinadifferentiatedwayrecognizesboththeclient’sandthecompetitors’corecompetenciesaswellasregulatoryfactorsEachvaluepropositionshouldaddress:productservicedistributionProfitpotentialshouldincludeprofitaswellas“hiddencosts”(e.g.,increasedtrainingandmarketingcostsfornewproducts)Segmentcustomers(existingandpotential)Choosetargetsegments*CreatevaluepropositionforeachtargetsegmentDetermineprofitpotential*Insomecases,therewillbeonlyonetargetsegmentCustomerSegmentationSteps12customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda13customersegmentation.PPTCustomerneeds(e.g.,preferencesforlowpricevs.highservice)psycho-graphicsattitudesNeeds-basedBehavioralDemographicTypeofdatausedtosegment:Examples:ValuehighserviceoverlowpriceValuelowpriceoverhighconvenienceValuebrandnameoverlowpriceBuyonsaleonlyvs.atfullpriceBehaviors(e.g.,purchasingpatterns,usagepatterns)UseATMvs.usebranchShopweeklyvs.monthlyforgroceriesDrinkcoffeevs.donotdrinkcoffeeDemographics(e.g.,age,income,homeownership)Youngvs.oldHighincomevs.lowincomeHomeownersvs.rentersTherearethreemaintypesofsegmentation:SegmentationMethods14customersegmentation.PPTPrimaryresearchnecessaryNeeds-basedBehavioralDemographicSegmentationprocess:Usefulnessincreatingvaluepropositions:High(showscausation)Descriptiveandactionable(describescustomersanddriversofpurchase)PrimaryresearchnecessaryonlyifbehavioraldatanotavailablefromclientdatabaseModerate(showscorrelation,notcausation)Descriptive,notactionable(describespurchasingbehavior,butdoesnotaddressdriversorpurchase)NoprimaryresearchnecessaryDemographicdatasometimesreadilyavailablefromclientLow(occasionallyshowscorrelation,nevercausation)Descriptive,notactionable(describescustomersbutdoesnotaddressdriversofpurchase)Needs-basedsegmentationisthemosttimeconsumingtoexecute,butalsothemostvaluable.MostofBain’sworkinvolvesneeds-basedsegmentation.ComparisonofSegmentationMethods15customersegmentation.PPTMakeacompletelistofpotentialcustomerandnon-customerneedsfocusgroupsorasmallnumberofunpromptedcustomerinterviewsbrainstormingpreviousclientworkorBainresearchCreateaneedslistCollectdataConductFactor/ClusteranalysistodeterminestatisticalsegmentsSteps:Askarepresentativesampleofcustomersandnon-customersabatteryofquestionsdesignedtogaugetheirneedsconcerningaproduct/serviceCustomersandnon-customersareplacedintosegmentsbasedontheirresponsestothekeyvariablesthatdrivepurchasebehaviorDefiningcustomergroupsinaneeds-basedsegmentationbeginswithidentifyingthelikelycustomerandnon-customerneeds.Needs-BasedSegmentation16customersegmentation.PPTTheBainResearchandDataAnalysisGroupinBostonshouldbecontactedwhenrunninganeeds-basedsegmentationtoensureproper,statisticallyvalidanalysisThesetoolscouldgenerateanumberofstatisticallyvalidanswers.Inthatcase,thesegmentationoptionsmustthenbescreenedusingbusinessjudgement.FactorAnalysisandClusterAnalysisarestatisticaltoolsusedtodetermineappropriateneeds-basedcustomersegments.Factor/ClusterAnalysis17customersegmentation.PPTTherearetwomethodologiesforsegmentingadatabaseofbehavioralordemographicinformation.CHAID-ananalyticaltoolthatusestheChi-Squarestatistictofindthedriversofadependentvariable80/20Process:Statisticalvalidity:Drawbacks:DividecustomersaccordingtotheirprofitabilityHypothesizeastothevariablesthatdriveprofitability.Combinevariablestocreatesegments.LowIterative,manualprocessRequiressolidintuitionRisksleavingoutimportantvariablesDoesnotaddresscausationChoosedependentvariable(e.g.,profit),hypothesizeastothesegmentationvariables,collectdataonvariables,runCHAID,realitycheckresults,andcreatesegmentsbasedontheCHAIDHighProcessrequirescontactingtheBainResearchandDataAnalysisGroupinBostonforsoftware/statisticalexpertiseinconductingCHAIDanalysisBehavioralandDemographicSegmentation18customersegmentation.PPTCHAIDanalysisdeterminesandranksallofthestatisticallysignificantdriversofachosendependentvariable(e.g.,profit,retention,productivity)Specifically,itgroupsindependentvariablesintosubgroupsindependentvariablesarecategorizedaccordingtotheirstatisticalsignificance(e.g.,storelocation,age)CHAIDidentifiesinteractions/effectsbetweenvariablesCHAIDyieldssubgroupswhicharestatisticallysignificantandMECECHAIDisastatisticallyrobustmethodusedtosegmentademographicorbehavioraldatabase.CHAID19customersegmentation.PPTMeaningful-thereshouldbeenoughdifferentiationamongsegmentssuchthateachsegmentsseemsuniqueMECE-eachcustomershouldbelongtoone,andonlyone,segmentMeasurable-clearlydefinedwithamarketsharethatcanbequantifiedSubstantial-thereshouldbeenoughvolumeinasegmenttomeritanalysisActionable-weshouldbeabletodesignavaluepropositionforeachsegmentRegardlessofthetypeofsegmentationused,thecustomergroupsdeterminedbythesegmentationprocessmusthavethefollowingcharacteristics:SegmentationRequirements20customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda21customersegmentation.PPTNote:Insomecases,therewillbeonlyonetargetsegmentThetargetsegmentsshouldbechosenbasedontheirattractivenesstoagivencompanyandthatcompany’sabilitytoservethetargetsegmentsinadifferentiatedway.Attractiveness

(profitpotential)AbilitytoserveinadifferentiatedwayRevenuepotentialCosttoserveClient’petitors’ExternalfactorsSizeGrowthpotentialBuyerpowerProductrequirementsPricesensitivityAdvertisingrequirementsChannelpreferenceServicerequirementsStrategicobjectivesAbilitytoleverage:technologycostsskillsexistingresourcesExistingmarketperceptionsExistingbaseinsegmentLegalrestrictionsRegulatoryrequirementsTargetSegmentSelection22customersegmentation.PPTDevelopCapabilitiestoServethisSegmentTargetthisSegmentAvoidthisSegmentAdjustValuePropositiontoImproveAttractivenessofthisSegmentLowLowHighHighAbilitytoServeSegmentinaDifferentiatedWay(Lever=Capabilities)SegmentAttractiveness(Lever=ValueProposition)TargetSegmentSelectionMatrix23customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda24customersegmentation.PPTFeaturesPriceQualityBrandPositioningPromotion/

advertisingProductServiceDistributionBeforesaleDuringsaleAftersaleDeliverychannelsSpeedAftercustomershavebeensegmentedandthemostattractivesegmentshavebeenchosen,acustomizedvaluepropositionshouldbecreatedforeachtargetsegmentbytradingoffamongthefollowingelements:ActionsshouldleveragestrengthsandoptimizeresourceswiththegoalofincreasingmarketshareofthetargetsegmentsValuePropositionDevelopment25customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda26customersegmentation.PPTOncethevaluepropositionshavebeenestablished,thepotentialprofittobegainedfromprovidingthemtothetargetsegmentsshouldbequantified.DetermineprofitpotentialCalculaterevenueincreaseCalculatecosttoserveCurrentcustomersNewcustomersCurrentcustomersNewcustomersProfitPotentialQuantification27customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda28customersegmentation.PPT*DisguisedclientcaseSmith’sFashionCenterisalargediscountwomen’’sretailerintheNortheastthatwantstounderstanditscustomerbasetodetermineexpansionoptions.AlistofthedriversofretailpurchasingbehaviorwasmadeCustomerswereasked~20questionstorecordtheirneedsFactor/ClusteranalysiswasusedtodeterminethesegmentsSegmentsizeandrevenuepotentialwerecalculatedAnexpansionmarketwaschosenandthemerchandisestrategywasadjustedbasedonthesegmentationresultsSmith’sFashionCenter*-Process29customersegmentation.PPTAfivesegmentsolutionwaschosenfromtheFactor/Clusteranalysis.FemaleapparelshoppersBargainsUtilityFashionPrimarymotivation:BargainsEfficiency/serviceFun(lovetoshop)Secondarymotivation:HighqualitybargainsServiceFashionBargainsNotmotivatedby:Fashion“FashionForwardShoppingLover”Segmentname:“FashionValue”“FashiononaShoestring”“UnfashionableBargainLover”“RichbutUnfashionable”$950$750$1,400Averagespendingperyear:$850$1,350Smith’sFashionCenter-Segments30customersegmentation.PPTSmithdeterminedthatitstargetsegmentswere“FashionValue”and“FashiononaShoestring”.*Inthiscase,spendingwasagoodproxyforprofitAbilitytoserveinadifferentiatedwaySmith'sFashionCenter-CurrentCustomers31customersegmentation.PPTChosenExpansionCitySmithchoseanexpansioncitywithahighmixofitstargetsegments.Smith'sFashionCenter-ExpansionCityCustomers32customersegmentation.PPTImportanceofAccessoriesMerchandiseQualityBasedontheneedsofthetargetsegments,themerchandisestrategywasadjustedtoincludeaccessoriesandmorelowqualitybrands.Smith'sFashionCenter-MerchandisingStrategy33customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda34customersegmentation.PPT*DisguisedclientcaseSituation:Complication:Question:Hypothesis:Theclient,HighlandHotels,hashighmarginsandisoneofthefivelargesthotel/conferencecenterchainsinEuropeThemarketiscomingtotheendofaperiodofrapidgrowthandHighland’srelativecostpositionisworsethanitscompetitors’HowcanHighlandpreserveitshighmarginsinaslowingmarketwhereitfindsitselfatacostdisadvantage?Byofferingadifferentiatedvaluepropositiontothemostprofitablecustomersegment,HighlandcanpreserveitshighmarginsBainusedcustomersegmentationtodeterminethetargetsegmentsforHighlandHotelsandtocreatevaluepropositionsforthosetargetsegments.HighlandHotels*-Background35customersegmentation.PPTBainconductedan80/20behavioral/demographicsegmentationforHighlandHotels.HighprofitcustomersweresegmentedbasedontheirbehavioralanddemographiccharacteristicsAtargetsegmentwaschosenbasedonitsattractivenessandHighland’’sabilitytoserveitCustomersweredividedintogroupsbasedontheirprofitabilityThebehavioralanddemographicdriversofprofitabilityweredeterminedAvaluepropositionwascreatedforthetargetsegmentHighlandHotels-Process36customersegmentation.PPTOnethirdofHighland’scustomersaccountformorethan60%ofitstotalprofits.HighlandHotels-CustomerProfitability37customersegmentation.PPTOccasionVisitFrequencyLengthofVisitTheprimarydriversofprofitabilityarevisitfrequency,lengthofvisit,andoccasion.HighlandHotels-ProfitabilityDrivers38customersegmentation.PPTHighlandidentifiedfourtypesofhighvaluecustomersbasedontheprofitabilitydrivers.HighProfitSegmentsAnnualFrequencyLengthofStayOccasion“Hotel-aholics”“Honeymooners””“Helloagain”“One-timers”Veryfrequent(9.2x)Infrequent(1.5x)Frequent(6.2x)Infrequent(1.3x)Medium(3.9days)Long(10.0days)Short(1.8days)Long(5.4days)Business/leisureLeisureBusinessBusinessHighlandHotels-HighProfitSegments39customersegmentation.PPTHighlanddecidedtotarget“hotel-aholics”becausetheywerethemostattractivesegmentandagoodfitwiththecompany’’scapabilities.AbilitytoserveinadifferentiatedwayHighlandHotels-TargetSegment40customersegmentation.PPTBaindesignedavaluepropositionforthe“hotel-aholic”segmentthatdifferentiatedHighlandfromitscompetitors.PriorityserviceSpecialservicesFavoriteroomready“Permanent”electronickeyComplimentarydrycleaningTwophonelinesFaxmachineinroomOne20minutecomplimentarycalltohomeRewardsFrequentfliermiles“KidsStayFree”daysHighlandHotels-ValueProposition41customersegmentation.PPTThecustomersegmentationconceptApplicationsCustomersegmentationstepssegmentcustomerschoosetargetsegmentscreatevaluepropositionsfortargetsegmentsdetermineprofitpotentialofservingtargetsegmentswithvaluepropositionsExamplesneeds-basedbehavioralKeytakeawaysAgenda42customersegmentation.PPTTherearethreemaintypesofcustomersegmentation:needs-based,behavioralanddemographic.Needs-basedsegmentationisthemostdifficulttoexecute,butthemostvaluable.MostofBain’sworkinvolvesneeds-basedsegmentationneeds-basedsegmentationinvolvescreatingalistofneeds,collectingdata,andconductingFactor/Clusteranalysistoidentifysegmentstherearetwomethodologiesforsegmentingadatabaseofbehavioralordemographicinformationthe80/20methodinvolvesdividingcustomersaccordingtotheirprofitability,hypothesizingastothevariablesthatdriveprofitability,andcombiningvariablestocreatesegmentstheCHAIDmethodinvolveschoosingadependentvariable,hypothesizingastothesegmentationvariables,collectingdata,runningtheCHAID,realitycheckingtheresults,andcreatingsegmentsRegardlessofthetypeofsegmentationused,theresultingsegmentsmustbemeaningful,MECE,measurable,substantial,andactionableCustomerSegmentationStepsTypesofSegmentationCustomersegmentationinvolvesseparatingcustomers(existingandpotential)intohomogeneousgroups,choosingtargetsegments(oronetargetsegments),creatingvaluepropositionsforeachtargetsegment,anddeterminingtheprofitpotentialofservingthetargetsegmentswiththeproposedvaluepropositionsKeyTakeaways(1of2)43customersegmentation.PPTTargetsegmentsarechosenbasedontheirpotentialprofitabilityandtheclient’’sabilitytoservethesegmentsinadifferentiatedwayDeterminingtheprofitpotentialofservingthetargetsegmentswiththeproposedvaluepropositionsconsistsofcalculatingtherevenueandcostimpactofservingbothcurrentandnewtargetcustomersThethreemajorelementsofavaluepropositionareproduct,service,anddistributionTargetSegmentsApplicationsCustomersegmentation,doneproperly,helpscompaniesfocusscarceresourceswheretheycanbemostleveragedBainusescustomersegmentationforbothcustomerretentionandcustomeracquisitionKeyTakeaways(2of2)44customersegmentation.PPTCustomerSegmentationStepsComparisonofSegmentationMethodsNeeds-BasedSegmentationBehavioralandDemographicSegmentationSegmentcustomers(existingandpotential)ChoosetargetsegmentsCreatevaluepropositionforeachtargetsegmentDetermineprofitpotentialChoosesegmentationmethod(needs-based,behavioral,ordemographic)basedonunderlyingissuesChoosetargetsegmentsbasedonattractivenessandabilitytoserveinadifferentiatedway(insomecases,therewillbeonlyonetargetsegment)Createvaluepropositionsbasedoncustomerneeds(eachtargetsegmentrequiresitsownvalueproposition)DeterminetherevenueandcostimpactsofofferingtheproposedvaluepropositionstothetargetsegmentsSegmentsshouldbemeaningfulMECE(onlyonesegmentpercustomer)measurablesubstantialactionableAttractivenessisbasedonprofitpotential(revenuepotentialandcosttoserve)Abilitytoserveinadifferentiatedwayrecognizesboththeclient’sandthecompetitors’corecompetenciesaswellasregulatoryfactorsEachvaluepropositionshouldaddress:productservicedistributionProfitpotentialshouldincludeprofitaswellas“hiddencosts”(e.g.,increasedtrainingandmarketingcostsfornewproducts)Process:Tips:PrimaryresearchnecessaryNeeds-basedBehavioralDemographicSegmentationprocess:Usefulnessincreatingvaluepropositions:High(showscausation)Descriptiveandactionable(describescustomersanddriversofpurchase)PrimaryresearchnecessaryonlyifbehavioraldatanotavailablefromclientdatabaseModerate(showscorrelation,notcausation)Descriptive,notactionable(describespurchasingbehavior,butdoesnotaddressdriversorpurchase)NoprimaryresearchnecessaryDemographicdatasometimesreadilyavailablefromclientLow(occasionallyshowscorrelation,nevercausation)Descriptive,notactionable(describescustomersbutdoesnotaddressdriversofpurchase)Makeacompletelistofpotentialcustomerandnon-customerneedsfocusgroupsorasmallnumberofunpromptedcustomerinterviewsbrainstormingpreviousclientworkorBainresearchSteps:Askarepresentativesampleofcustomersandnon-customersabatteryofquestionsdesignedtogaugetheirneedsconcerningaproduct/serviceCustomersandnon-customersareplacedintosegmentsbasedontheirresponsestothekeyvariablesthatdrivepurchasebehaviorCreateaneedslist