Insights and Segmentation
Profit potential varies dramatically across a company’s customer base, and different customers can have radically different needs and behaviors. Recognizing that simple averages cannot accurately capture the preferences of either your customers or the marketplace as a whole is a crucial step in developing a sound customer strategy.
We use rigorous quantitative techniques combined with real customer interaction-interviews, focus groups, and shop-alongs. We identify opportunities for clients to deepen relationships with the loyal, profitable customers they most want.
We help clients to couple their unique strengths with refined customer insights to maximize the impact their segmentation efforts.
We help clients keep their segmentation insights fresh by utilizing customer feedback to spur innovation, anticipate shifts in the marketplace and navigate their evolving needs. By utilizing this customer-centric approach to every aspect of customer strategy, we help clients allocate their resources, pursue the right opportunities and ensure that they will realize the full revenue potential of their products, services and relationships.
The business world is changing faster than ever, and increasingly companies are finding that timely response to shifting customer needs—their desires and expectations as well as their points of irritation and dissatisfaction—is essential for growing revenue. CP helps companies apply customer insights across the entire business by first asking the big, strategic questions: “Who are our target customers?,” “How do we best serve them?,” “Where do we need to play?,” and then by addressing how to optimize operating models to meet those needs. We also recognize that customers are driven by both rational and irrational mental processes; therefore, it is imperative to spend time with them, observe their behaviors and look for trends.
Our analysis strategies target the data that will help our clients make the most effective decisions. When done incorrectly, segmentation can drown you with superfluous information. Although our analysis is comprehensive, we are careful to keep our clients focused on the data that directly relates to product and process improvements that will generate money.
Our approach to segmentation begins with a clear understanding of our client’s desired outcomes. We define what it is we’re trying to accomplish first because real business objectives can be obscured in the segmentation process when companies try to reach all customers in all capacities.
When clear objectives have been defined, we focus on identifying the customers who are worth more than others—those who are truly tied to our client’s economics. That does not necessarily mean segmenting on economics alone, it entails discovering which segments allow your company to make more profit per customer than your competitors.
The segmentation and insights process will not yield results if customers’ economic value to your business is not the principle consideration. Our strength is tying targeted, priority segments, and the resulting customer insights, to economic understanding to drive revenue growth for our clients. In doing so successfully, we excel where specialist market research firms struggle.
By identifying segmentation objectives and focusing on economics first, we are the able to work alongside companies to design and implement segmentation strategies that are tailored to their needs. We consider how clients will use the segmentation—through which avenues will they receive the data, how can the information be effectively used throughout the organization, what resulting actions are necessary and how will those initiatives be practically deployed in the field—to build enduring valuable analytic techniques.