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wledge 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 homogeneous and Heterogeneous BUT Actionable ? Evolving ? Hierarchical Pigeonhole ? Multidimensional ? Total Customer View incorporating external data 5 Dynamic Segmentation Segmentation Models 6 Dynamic Segmentation in Practice Customer Base Stage 1 Stage 1 Stage 2 Stage 2 Stage 2 Stage 2 Stage 3 Stage 3 Stage 3 Stage 3 Stage 3 Stage 3 Stage 3 Stage 3 Segmentation has its own Lifecycle Stage 2 = Behavioural Stage 3 = Needsbased 7 Segmentation Modeling for CRM Program Structured Triple A CRM Lifecycle Model Stage 2 for Acquisition Stage 2 Stage 2 Stage 3 Stage 3 Stage 3 Stage 3 Acquisition ? Customercentric ? Eliminate the “Irrelevant” AntiAttrition ? Microanalysis to identify Trigger ? Predictive Model Dynamic Segmentation CRM Model Catching the Right Customer at the Ri