5.4. Analyzing and Segmenting Customers
Whatever project you have chosen to work on, it's time to specifically identify the customer or group of customers for whom the result is intended.
PHASE 3—KNOW YOUR CUSTOMERS
If you've established web-based support to provide customer assistance and replace expensive call centers, you may want to target the effort at lower-value customers as you roll it out and refine it. On the other hand, if the new capability is expensive to build and roll out, like a detailed tool for a customer to view and manage all of his orders, you may want to start with the most valuable customers. But how do you know who they are?
5.4.1. Analyze Customers: Steps
You don't begin a project without any idea of who the target audience is. You might have even selected a few representative individual customers for interviews or focus groups. The steps shown in Table 5-3 will help you determine what other customers match the criteria you've identified.
| Step | Purpose | Participants |
|---|---|---|
| Getting Down and Dirty with the Data | Determine customer profiling and scoring model Optimize profile coverage | Product Team
Database Marketing Team Customer Information Management Team |
| Segmenting Customers | Define most predictive segmentation strategy Create Groups of customers “like one” | Product Team Database Marketing Team |
| Transition: Selecting Target Segments | Select customers profile values most likely to deliver the best response to the project offer. Identify specific customers who match that profile | Business Team Database Marketing Team |
All customers are not alike, and CRM does not suggest they be treated all the same. CRM requires that all customers be treated appropriately to their needs and their value to the company. In Chapter 17, we will cover more of what's required to target customer segments.
5.4.2. What You'll Get
When finished with the customer analysis phase, you will have identified the types of customers who should be targeted to receive the new offer. You may also have identified some additional customer information sources that will improve your ability to send your offer to the right customers.
5.4.3. Transition: Select Target Segments
As a result of this transition, you will have identified the actual customers who fit the profile you intended this project to benefit. Depending on the offer medium, this list can be made up of mailing labels, e-mail addresses, phone numbers, or simply a list of companies you intend to sign up for a new capability.