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1、Author: Laird Reed,Contributors: Barbara Bilodeau, Dorie Krawiec,bc,Segmentation,Customer,March 1998,Copyright 1998 Bain & Company, Inc,1,customersegmentation.PPT,The customer segmentation concept Applications Customer segmentation steps segment customers choose target segments create value proposit
2、ions for target segments determine profit potential of serving target segments with value propositions Examples needs-based behavioral Key takeaways,Agenda,2,customersegmentation.PPT,The customer segmentation concept Applications Customer segmentation steps segment customers choose target segments c
3、reate value propositions for target segments determine profit potential of serving target segments with value propositions Examples needs-based behavioral Key takeaways,Agenda,3,customersegmentation.PPT,Competitors,Customer Segmentation Purchase Criteria Rating (Importance Analysis) Company Position
4、ing (Effectiveness Analysis) Attractiveness Analysis Value Proposition Development Customer Retention and Loyalty Customer Acquisition,Customers,To identify cost reduction opportunities,Customer segmentation is an important tool for customer analysis,Cost,Capabilities,Strategic Purpose,Tools,To iden
5、tify revenue and profit maximizing strategies,To achieve differentiation and to preempt competitors moves,To determine the strategies that fit best with a companys core competencies,Context,4,customersegmentation.PPT,In some cases, there will be only one target segment,Customer segmentation is a pro
6、cess of identifying homogeneous groups of customers. Once customers have been segmented, a company chooses target segments and approaches each segment with a value proposition that meets the segments needs,Each customer segment describes a homogeneous group of customers,Segment customers(existing an
7、d potential,Choose target segments,Create value propositionfor each target segment,Determine profit potential,Target segments are the most attractive customer segments for a given company to focus on,A value proposition is the combination of product, service, and delivery offered to the customer,The
8、 potential profit from serving the target segments with proposed value propositions must be determined,The Process,5,customersegmentation.PPT,Customer segmentation is valuable because all customers are not created equal,Each customer segment has a unique set of needs and requires its own value propo
9、sition The profit potential differs by customer segment,Customer segmentation helps companies focus scarce resources where they can be most leveraged,Why Do Customer Segmentation,6,customersegmentation.PPT,The customer segmentation concept Applications Customer segmentation steps segment customers c
10、hoose target segments create value propositions for target segments determine profit potential of serving target segments with value propositions Examples needs-based behavioral Key takeaways,Agenda,7,customersegmentation.PPT,Customer segmentation is useful for both customer retention and customer a
11、cquisition,Segment customers,Choose target segments,Create value proposition for each target segment,Retain target customers,Acquire target customers,Retention and Acquisition,8,customersegmentation.PPT,Bain caseteams have used customer segmentation to,Identify gaps or redundancies in the product po
12、rtfolio Screen out unacceptable new products Choose product features Determine product pricing Establish appropriate service options Determine optimal distribution strategy Advise on advertising strategy,Applications (1 of 2,9,customersegmentation.PPT,A large European beer manufacturer was faced wit
13、h increasing competition and low market growth. Bain used segmentation to identify product portfolio gaps and determine optimal positioning for new and existing brands. This resulted in an 8% market share increase. An international cosmetics company wanted to identify opportunities in the high growt
14、h skin care market. A Bain team identified unmet consumer needs for anti-aging creams and proposed an optimal strategy for targeting the appropriate customers. This resulted in approximately $145MM in value creation,Bains customer segmentation work has brought significant results for many clients. E
15、xamples of Bains work include,Applications (2 of 2,10,customersegmentation.PPT,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
16、value propositions Examples needs-based behavioral Key takeaways,Agenda,11,customersegmentation.PPT,Choose segmentation method (needs-based, behavioral, or demographic) based on underlying issues,Process,Tips,Choose target segments based on attractiveness and ability to serve in a differentiated way (in some cases, there will be only one target segment,Create value propositions based on customer needs (each target segment requires its own value proposition,Determine the revenue and cost impacts
