Three-Step Process for Propensity-Based Segmentation PPT


This PPT slide, part of the 98-slide Organic Growth Framework (OGF) PowerPoint presentation, outlines a three-step process for developing a Propensity-based Segmentation Map, which is crucial for understanding customer behaviors and tailoring strategies accordingly. The first step focuses on identifying segmentation variables. This involves generating a starter list of potential variables, screening them for their observability and actionability, determining how these variables correlate with specific behavioral objectives, and ultimately creating a short list of the most relevant segmentation variables.

The second step is about constructing and populating the segmentation frame. This entails taking the shortlisted variables and organizing them into a structured framework that can be populated with data. This framework serves as the foundation for analyzing customer segments based on their propensity to engage or convert.

The final step is defining the segments. Here, the focus shifts to identifying which segments are based on propensity and prioritizing them according to their potential impact. This structured approach allows for a more nuanced understanding of customer segments, enabling businesses to tailor their strategies effectively.

The note at the bottom emphasizes that while this process may resemble traditional segmentation methods, the specific analyses and activities involved differ significantly. This distinction is important for potential customers to understand, as it highlights the innovative nature of this approach. By adopting this methodology, organizations can gain deeper insights into customer behavior, ultimately leading to more effective marketing and engagement strategies.



This slide is part of the Organic Growth Framework (OGF) PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It is an emerging Growth Strategy framework that focuses on changing customer behaviors, instead of product differentiation.

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