【文章內(nèi)容簡介】 propositions ?Examples –needsbased –behavioral ?Key takeaways Agenda 21 Note: In some cases, there will be only one target segment The target segments should be chosen based on their attractiveness to a given pany and that pany’s ability to serve the target segments in a differentiated way. Attractiveness (profit potential) Ability to serve in a differentiated way Revenue potential Cost to serve Client’s core capabilities vs. petitors’ External factors ?Size ?Growth potential ?Buyer power ?Product requirements ?Price sensitivity ?Advertising requirements ?Channel preference ?Service requirements ?Strategic objectives ?Ability to leverage: – technology – costs – skills – existing resources ?Existing market perceptions ?Existing base in segment ?Legal restrictions ?Regulatory requirements Target Segment Selection 22 Develop Capabilities to Serve this Segment Target this Segment Avoid this Segment Adjust Value Proposition to Improve Attractiveness of this Segment Low Low High High Ability to Serve Segment in a Differentiated Way (Lever = Capabilities) Segment Attractiveness (Lever = Value Proposition) Target Segment Selection Matrix 23 ?The customer segmentation concept ?Applications ?Customer segmentation steps –segment customers –choose target segments –create value propositions for target segments –determine profit potential of serving target segments with value propositions ?Examples –needsbased –behavioral ?Key takeaways Agenda 24 ?Features ?Price ?Quality ?Brand ?Positioning ?Promotion/ advertising Product Service Distribution ?Before sale ?During sale ?After sale ?Delivery channels ?Speed After customers have been segmented and the most attractive segments have been chosen, a customized value proposition should be created for each target segment by trading off among the following elements: Actions should leverage strengths and optimize resources with the goal of increasing market share of the target segments Value Proposition Development 25 ?The customer segmentation concept ?Applications ?Customer segmentation steps –segment customers –choose target segments –create value propositions for target segments –determine profit potential of serving target segments with value propositions ?Examples –needsbased –behavioral ?Key takeaways Agenda 26 Once the value propositions have been established, the potential profit to be gained from providing them to the target segments should be quantified. Determine profit potential Calculate revenue increase Calculate cost to serve Current customers New customers Current customers New customers Profit Potential Quantification 27 ?The customer segmentation concept ?Applications ?Customer segmentation steps –segment customers –choose target segments –create value propositions for target segments –determine profit potential of serving target segments with value propositions ?Examples –needsbased –behavioral ?Key takeaways Agenda 28 *Disguised client case Smith’s Fashion Center is a large discount women’s retailer in the Northeast that wants to understand its customer base to determine expansion options. A list of the drivers of retail purchasing behavior was made Customers were asked ~20 questions to record their needs Factor/Cluster analysis was used to determine the segments Segment size and revenue potential were calculated An expansion market was chosen and the merchandise strategy was adjusted based on the segmentation results Smith’s Fashion Center* Process 29 A five segment solution was chosen from the Factor/Cluster analysis. Female apparel shoppers Bargains Utility Fashion Primary motivation: Bargains Efficiency/service Fun (love to shop) Secondary motivation: High quality bargains Service Fashion Bargains Not motivated by: Fashion “ Fashion Forward Shopping Lover” Segment name: “ Fashion Value” “ Fashion on a Shoestring” “ Unfashionable Bargain Lover” “ Rich but Unfashionable” $950 $750 $1,400 Average spending per year: $850 $1,350 Smith’s Fashion Center Segments 30 R i c h b u t u n f a s h i o n a b l eU n fa s h i o n a b l e Ba r g a i n L o v e rF a s h i o n o n a Sh o e s tr i n gF a s h i o n Va l u eF a s h i o n Fo r w a r dS h o p p i n g L o v e rPe r c e n t o f c u r r e n t c u s to m e r s Pe r c e n t o f c u r r e n t c u s t o m e r s p e n d i n g *0%2 0 %4 0 %6 0 %8 0 %1 0 0 %Percent of TotalSmith determined that its target segments were “Fashion Value” and “Fashion on a Shoestring”. *In this case, spending was a good proxy for profit Ability to serve in a differentiated way Smith39。s Fashion Center Current Customers 31 Chosen Expansion City R i c h b u t U n fa s h i o n a b l eU n fa s h i o n a b l e Ba r g a i n L o v e rF a s h i o n o n a Sh o e s tr i n gF a s h i o n Va l u eF a s h i o n Fo r w a r dS h o p p i n g L o v e rPe r c e n t o f p o p u l a ti o n Pe r c e n t o f s p e n d i n g0%2 0 %4 0 %6 0 %8 0 %1 0 0 %Percent of TotalSmith chose an expansion city with a high mix of its target segments. Smith39。s Fashion Center Expansion City Customers 32 Importance of Accessories F as hion F or w ar dS hopping Lov er sF as hion V alueF as hion on a S hoes t ringU nf as hion ableB ar gain Lov erRi c h butU nf as hionable40%60%35%15%25%0%20%40%60%80%100%Percent Saying Important to Carry Accessor