Customer Segmentation Matrix

Customer Segment Descripon

Customer Segmentaon is the subdivision of a market into discrete customer groups that share unmet customer customer needs. Companies Companies that idenfy idenfy underserved segments segments can then outperform outperform th Segmentaon is most eecve when a company tailors oerings to segments that are the most help companies develop markeng campaigns and pricing strategies to e!tract ma!imum value the principal principal basis for allocan allocang g resou resources rces to prod product uct developme development$ nt$ markeng$ markeng$ service service and and deli deli Methodology

Custome Customerr Segmenta Segmentaon on requir requires es manager managerss to% &ivide &ivide the mark market et into into meaningfu meaningfull and measur measura a proles( &eterm &etermine ine the prot prot poten potenal al of of each each segm segmen entt by anal analyi ying ng the the rev revenu enue e and and cost cost impa impact ctss of se se Target segments according to their prot potenal and the company's ability to serve them in a )nvest )nvest resou resources rces to tailor tailor produc product$ t$ service$ service$ mark markeng eng and and distribu distribuon on progr programs ams to to match match the ne ne *easure *easure performa performance nce of each each segmen segmentt and and ad+ust ad+ust the segmen segmenta taon on appr approach oach over me as as ma Common uses Companies can use Customer Segmentaon to% ,riorie new product development eorts( &evelop customied markeng programs( Choose specic product features( -stablish appropriate service opons( &esign an opmal distribuon strategy( &etermine appropriate product pricing. ,erf ,erform orming ing Cust Custome omerr Segm Segmen enta taon on #nalys #nalysis is and and dividi dividing ng your your cus custo tomer mer base base int into o di dier erent ent seg and alt altern erna aves ves for for grow growth th in thos those e segmen segments. ts. Cus Custom tomer erss within within one one cust custome omerr segme segment nt hav have e si understanding understanding your customer segments can give you compeve compeve advantage advantage in your marketpla marketplacc you are in developing customied oerings$ oerings$ products$ services or simply you are able to develop

aon Matrix similar characteriscs. Customer Segmentaon can be a powerful means to idenfy e compeon by developing uniquely appealing products and services. Customer protable and serves them with disnct compeve advantages. This prioriaon can rom both high" and lowprot customers. # company can use Customer Segmentaon as ery programs.

le segments according to customers' needs$ their past behaviors or their demographic rving each segment( proprietary way( eds of each target segment( ket condions change decision making throughout the organiaon.

ents based on dierent criteria is a great e!ercise for discovering protable segments milar characteriscs and are driven by similar needs and preferences. #nalying and . or e!ample$ the be/er you know and understand the segment the more compeve be/er sales and markeng approach. Customer Segmentaon allows you to be/er

Customer Segmentation Matrix Product / Service

Customers

Potential Segments