Prioritizing Market Segments: Time vs. Value Analysis PPT

This PPT slide, part of the 18-slide Market and Customer Segmentation PowerPoint presentation, presents a framework for Operational Segmentation, emphasizing the importance of prioritizing market segments based on the interplay of Time/Resources and Value. It utilizes the Pareto Principle, which suggests that a small percentage of inputs often leads to a large percentage of outputs. The visual representation is split into 2 bars, indicating that 20% of customers may consume 80% of resources while contributing only 20% of value. Conversely, the remaining 80% of customers could be generating 80% of the value with significantly less resource consumption.

Key questions are posed to guide the audience's understanding: "Who’s the blue and who’s the gray?" This likely refers to distinguishing between high-value and low-value customer segments. The slide prompts executives to consider which customer groups require the most time and resources, but yield the least return, and vice versa. This analysis is crucial for optimizing resource allocation and enhancing operational efficiency.

Operational Segmentation is positioned as a strategic tool to help organizations identify what to offer to whom, thereby maximizing the effectiveness of time and resources. By focusing on the right segments, businesses can improve customer engagement and drive better financial outcomes. The slide serves as a call to action for executives to rethink their customer strategies, ensuring that efforts are directed toward segments that provide the best return on investment.

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Customer Segmentation Pareto Principle Return on Investment