Customer Segmentation (PowerPoint PPT)

Customer segmentation is an important tool for customer analysis.
•  To identify cost reduction opportunities
•  To identify revenue and profit maximizing strategies
•  To achieve differentiation and to preempt competitors' moves
•  To determine the strategies that fit best with a company's core competencies

This presentation was developed to show how to do an effective customer segmentation excercise. It contains key concepts, approaches, and their application through some examples.

This document delves into the intricacies of customer segmentation, offering a structured approach to dividing customers into distinct groups based on their needs and behaviors. It outlines a comprehensive methodology, from creating a needs list to conducting factor and cluster analysis, ensuring that the segments are statistically robust and actionable. The presentation emphasizes the importance of aligning segmentation strategies with a company's core capabilities and market conditions.

You'll find detailed examples of successful segmentation projects, including case studies from various industries. For instance, a European beer manufacturer leveraged segmentation to identify product portfolio gaps, resulting in an 8% market share increase. Another case study highlights how an international cosmetics company used segmentation to tap into the high-growth skincare market, leading to significant new product development and market penetration.

The document also covers advanced segmentation techniques like CHAID analysis, which helps in identifying key drivers of customer behavior and grouping variables into meaningful subgroups. This statistical method is crucial for companies looking to optimize their marketing strategies and improve customer targeting.

The presentation also includes practical tools and frameworks for developing value propositions tailored to each segment. By focusing on product features, service elements, and distribution channels, businesses can enhance their market share and profitability. This resource is indispensable for executives aiming to refine their customer segmentation strategies and drive business growth.