Strategic Framework for Effective Customer Segmentation PPT

This PPT slide, part of the 47-slide Customer Segmentation PowerPoint presentation, outlines a structured approach to customer segmentation, emphasizing both the process and key considerations involved. It begins with the fundamental step of segmenting customers, which includes both existing and potential clients. The segmentation methods highlighted are needs-based, behavioral, and demographic, suggesting a comprehensive view of customer characteristics. The underlying issues that guide the choice of segmentation method are crucial for ensuring relevance and effectiveness.

The next phase involves selecting target segments. This selection is based on attractiveness and the organization's ability to serve these segments in a differentiated manner. The slide notes that in some instances, there may only be one target segment, which underscores the importance of focusing efforts where they can yield the highest impact. Attractiveness is evaluated through profit potential, considering both revenue opportunities and the costs associated with serving these segments.

Creating a tailored value proposition for each target segment is the subsequent step. This proposition must address specific customer needs and should encompass product, service, and distribution aspects. The slide emphasizes that each target segment requires its own unique value proposition, which is vital for effective engagement.

Finally, the slide discusses determining profit potential. This involves assessing the revenue and cost implications of the proposed value propositions. It highlights the necessity of including both direct profits and hidden costs, such as increased training and marketing expenses for new products. This comprehensive approach ensures that organizations can strategically align their offerings with customer expectations while maximizing profitability.

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Customer Segmentation Value Proposition