Three-Step Process for Propensity-Based Segmentation PPT

This PPT slide, part of the 23-slide Organic Growth Framework (OGF) Series: Phase 2 PowerPoint presentation, outlines a structured three-step process for developing a propensity-based segmentation map, crucial for targeted marketing and strategic decision-making. The first step, "Identify Segmentation Variables," involves generating a starter list of potential segmentation variables. This is followed by screening these variables for their observability and actionability, ensuring that they can be effectively utilized in the segmentation process. The correlation of these variables with specific behavioral objectives is also determined, leading to a refined short list of segmentation variables.

The second step, "Construct and Populate Segmentation Frame," focuses on building a comprehensive framework that incorporates the selected segmentation variables. This framework serves as the foundation for analyzing customer segments, allowing for a more nuanced understanding of different market segments.

The final step, "Define the Segments," emphasizes the identification and prioritization of propensity-based segments. This involves analyzing the constructed framework to define distinct customer segments that can be targeted more effectively. The prioritization of these segments ensures that resources are allocated efficiently, maximizing the potential for growth.

Overall, this process is designed to enhance the effectiveness of segmentation efforts, moving beyond traditional methods to incorporate behavioral insights. The slide suggests that while the steps may resemble typical segmentation processes, the specific analyses and activities involved are tailored to yield more actionable insights. This approach is particularly relevant for organizations looking to refine their marketing strategies and improve customer engagement.

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