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Understanding segmentation and the customer needs led segmentation approach.
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Customer Segmentation
1.
Copyright © 2017
IQbusiness Customer Segmentation
2.
Copyright © 2017
IQbusinessCopyright © 2017 IQbusiness 2 INDEX Introduction to IQbusiness Segmentation Customer Needs Led Segmentation Approach Benefits Questions 1 2 3 4 5
3.
Copyright © 2017
IQbusiness WHO WE ARE IQbusiness is the leading independent management consulting firm in South Africa • Founded in 1998 • 600+ consultants • Presence on four continents • Two offices in South Africa Our team helps businesses grow by solving problems and finding new and better ways of doing things. 3
4.
Copyright © 2017
IQbusiness WHAT WE DO 4 We are redefining management consulting to be more responsive to the challenges our clients face. Our flexible approach includes: • Capacity and capability building • Multi-disciplined teams • Sustainable solution - by market - by industry - by function • Staff augmentation • Contract resources • Subject matter experts CONSULTING RESEARCH CONTRACTING • Methodologies • Benchmarks and best practices • Surveys and data analytics Copyright © 2017 IQbusiness
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Copyright © 2017
IQbusinessCopyright © 2017 IQbusiness 5Copyright © 2017 IQbusiness TRADITIONAL SEGMENTATION
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Copyright © 2017
IQbusiness SEGMENTATION 6 What is it? • Traditionally a marketing tool • An approach to dividing your current and potential customer base into similar groupings (segments), in order to create more targeted messages • Similarities can be based on characteristics such as demographics, behavior, lifestyles, interests, needs, etc.
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Copyright © 2017
IQbusiness SEGMENTATION 7 Why do we do it? To Identify the types of customers we want to do business with, i.e. • Customers that will give us a high return • Customers that we know how to engage with • Customers that require the products and services that we have
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Copyright © 2017
IQbusiness CURRENT SEGMENTATION APPROACHES 1. How does your organisation currently segment customers? 2. Is your organisation’s segmentation aligned to your customer experience initiatives? 8 ? ? ?
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Copyright © 2017
IQbusiness CHALLENGES There are so many ways in which to segment…. But demographics are the easiest and most often used characteristic • Demographics are not a proxy for customer needs • Segments are still fairly homogenous, and don’t support sufficient personalisation Although Marketing and Sales efforts are aligned to a segment, the rest of the value chain is often misaligned • Disconnect in the customer journey resulting in dissatisfied customers down the line Changing the segmentation model can have a significant organisational impact • People and organisation structure, existing client relationships, processes, data, MI, marketing… 9
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Copyright © 2017
IQbusinessCopyright © 2017 IQbusiness 10 CUSTOMER NEEDS LED SEGMENTATION Copyright © 2017 IQbusiness
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Copyright © 2017
IQbusiness CUSTOMER NEEDS ALIGNMENT 11 ? ? ? Make it Enjoyable Make it Easy Meet the Need Dr E Sanders
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Copyright © 2017
IQbusiness OUR APPROACH 12 Guiding Principles 1. Customer needs before circumstances 2. Insights from human interaction (employee and customer feedback before data analytics 3. Strategic selection over ‘all things to all customers’ 4. End-to-end alignment throughout the value chain over siloed efforts 5. Co-creation and participative engagement over prescriptive best practice 6. Minimial client disruption through iterative and incremental implementation over big bang
13.
Copyright © 2017
IQbusiness FROM NEED TO SEGMENTATION 1 Identify Customer Types 2 Prioritise Customer Types 6 Understand Preferred channel & engagement model (per customer type) 5 Define Customer Lifecycle* (per customer type) Awareness Buy in Acquisition Customisation Use Share 7 Group Similar Customer Types to form new segments 8 Evaluate Operating Model and other implications 4 Collate Needs Info and enrich data 3 Define Successful Customer Outcomes and Real Needs* * Using CEMMethod™ from the BP Group
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Copyright © 2017
IQbusiness DEFINING CUSTOMER NEEDS 14 SuccessfulCustomerOutcomeCanvas CEMMethod™
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Copyright © 2017
IQbusiness DEFINING THE CUSTOMER LIFECYCLE 15 START 1. AWARENESS: How does the customer become aware of the need? How is it triggered? 2. BUY IN: How does the customer become engaged with your product or service? How do they know it is for them? 3. ACQUISITION: What are the steps to actually purchasing the product or service? 4. CUSTOMISATION: How is the product or service aligned to this customer (after the purchase)? 5. USE: What are the interactions necessary in using the product or service? 6. SHARE: How can the customer spread the word? The cycle repeats and matures. Awareness is also a continual process, through the media, friends, family, work, social networks. Are you building awareness into all interactions?CEMMethod™
16.
Copyright © 2017
IQbusiness CHANNEL PREFERENCE & MATURITY 16TIME CXMATURITY Traditional Customers rely on traditional channels and interactions— but even then, they leave digital traces. Experimental Customers selectively engage in digital for utility value, discovering how the experience improves. Transitional Customers strive to leverage digital more broadly, but may not always be able to do so. Digital Savvy Customers make digital technology part of all dimensions in their lives—mobile access is key. 1 2 3 4 CEMMethod™
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Copyright © 2017
IQbusinessCopyright © 2017 IQbusiness 17 BENEFITS Copyright © 2017 IQbusiness
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Copyright © 2017
IQbusiness BENEFITS OF CUSTOMER NEEDS LED SEGMENTATION 18 Better Customer Insights1 Fully Aligned Organisation2 Efficient and Effective Delivery3 Increased Revenue6 Reduced Operating Costs5 Improved Customer Experience4
19.
Copyright © 2017
IQbusinessCopyright © 2017 IQbusiness 19 QUESTIONS Copyright © 2017 IQbusiness
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Copyright © 2017
IQbusiness OUR CLIENTS 20
21.
Copyright © 2017
IQbusiness Johannesburg Physical Address: IQ Business Park 3, Third Avenue Rivonia Gauteng South Africa T: +27 11 259 4000 F: +27 11 259 4111 E: info@iqbusiness.net Cape Town Physical Address: The Vineyards Office Estate 99 Jip de Jager Welgemoed Cape Town South Africa T: +27 21 461 9797 F: +27 21 461 9794 E: info@iqbusiness.net For further information on this material, please contact: Lizette Akker Phone : +27 11 259 4000 Mobile : +27 82 852 4294 Email : lakker@iqbusiness.net Copyright © 2017 IQbusiness CONTACT US
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