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Customer Segmentation: Foundation for Differentiated CRM Wilson Lo, Head of Business Planning CRM Consumer Banking, Hong Kong, DBS Data Warehouse Frontend Platform Analytics Program Learning The Great Expectation 1 CRM Strategy for Relationship Building Retention Acquisition New Customer Management Customer Relationship Management Repositioning 0 36 months Extend into lifetime CRM Lifecycle ? Growth Strategy Lifetime Relationship Management ? Servicing Strategy ? Enabler Strategy Customer Strategy Business Objective 2 Retention Acquisition New Customer Management Customer Relationship Management Repositioning Segmentation 0 36 months Extend into lifetime Customer Analytics for Developing CRM 3 No One Scheme Fits All Product Transaction Usage Behaviour Value Based Segments of One Knowledge of Customers High Low Number of Segments Few Many Needs Based 4 Segmentation Know Your Customers Conventional ? Homogeneous within Segment and Heterogeneous among Segments ? Stable ? Balanced distribution ? Monodimensional ? Internally focused (for data availability) Dynamic ? Both h