Customer value segmentation- Segmaentation of silverjet
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The document discusses customer value segmentation and market segmentation. The primary objectives are to understand the value of individual customers to compare them, and use their position in the hierarchy to determine if they should be included in marketing campaigns. Understanding a customer's rank enables decisions around investment levels and whether to invest in them. Testing the RAG (Red, Amber, Green) model on non-marketers helped improve internal communication, and clustering analysis provided a better understanding of the customer base. The RAG status was useful for highlighting sales opportunities and prioritizing outbound sales calls.
Customer value segmentation- Segmaentation of silverjet
- 2. SEGMENTATION: 2 Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.
- 3. OBJECTIVES 3 The primary objective was to understand the value of an individual customer so that it was possible to compare them against others and use this position in the hierarchy to include or exclude the customer from marketing campaigns based on the objectives of the activity Understanding a customer's rank enabled decisions to be made around the level of investment made and in some cases, whether to not invest in a customer at all
- 4. INDUSTRY ANALYSIS Strengths • Possess both software and hardware solutions • Provides professional local consultancy services • Cooperated with leading companies for IT services • Capability of autonomous manufacturing and supply of data driven marketing Weakness • Limited Experience in the field • Research and Development team needs to be strong for key software technologies and business analytics 4
- 5. Opportunity • Large-scale cloud data center continues to expand in scale, placing orders directly to the server and storage equipment OEM industry. • Enterprise data continue to grow and support the needs of storage devices. • Enterprise mobile application software and services with big data needs are growing. Threat • Global leading companies lead big data technologies and standards. • Part of the business is replaced by emerging vendors such as Amazon and Dropbox. • Industries rise in the emerging markets
- 6. Silver Jet Insight improve customer experiences through understanding customer behavior. Developing strategies through the use of data Building high levels of engagement and strong relationships. Use data to build understanding of the customer base and how they interact with the company. Help define the customer strategy SILVER JET INSIGHT
- 10. WHAT IS MARKET SEGMENTATION? Market segmentation is the research that determines how your organization divides its customers or cohort into smaller groups based on characteristics such as, age, income, personality traits or behavior. These segments can later be used to optimize products and advertising to different customers. 10
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- 12. TYPES OF MARKET SEGMENTS Geographic • Divides market into different geographical regions • Population density,size of the area,regions are some of the factors Demographic • Divides market in terms of demographic variables • Age,marital status,family size,occupation are some of the variables Psychographic • Information concerning attitude and personality traits • Knowledge of life cycle can provide meaningful picture of a person Behavioural • Division on the basis of knowledge, attitude, use or response to a product. • Provides better understanding of customers 12
- 13. CUSTOMER VALUE SEGMENTATION • Understand best opportunities for strategic marketing investments • Identify tactical marketing opportunities • Develop clearly defined, value-based segments for customers. 13
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- 15. PRIMARY OBJECTIVE • Understand the value of an individual customer. • Possible to compare segmented customer base to others. • Using this technique to include or exclude individual customer / customer base from a campaign, based on the objective of the study. 15 • Understanding customers rank. • Enables decisions to be made around the level of investment. • Gives an idea to invest in a customer or not. • Will save investments in terms of money spent, branch staff time as well as helping sales representatives.
- 16. RFM MODEL
- 17. RFM RECENCY- The most recent purchase of a product or service. FREQUENCY – Number of purchases within a certain Time Period MONETARY – Money spent on each purchase.
- 20. REVIEW ON SEGMENTATION DONE BY SILVERJET
- 21. RAG MODEL • A Key Performance Indicator (KPI) is meaningless unless its value can be compared to something. Without a comparison it is impossible to say if the value is good, bad or indifferent. • For a KPI to be useful acceptable and unacceptable results need to be clearly understood. This are usually described as defining ‘thresholds’. • There are several threshold models available, for the purpose of this case study, we see the use of RAG model. 21
- 22. 22 There are no hard and fast rules to the meanings attributed to each of the colored areas but generally they tend to be: • Green – an acceptable result, we are on target • Amber – there may be a problem, we should investigate • Red – an unacceptable result, there is a problem that needs rectification
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- 24. FINDINGS • Testing of the model on the non – marketers helped in better understanding of the direction of the internal communication. • Clustering analysis helped better understanding of the customer base. • The RAG status became a useful model to highlight the sales opportunities. • The RAG status provided the opportunity to the branch sales force to prioritize the outbound sales calls. 24
- 25. CONCLUSION • A shift from the traditional RFM Model. • The RAG model can be used by the sales and branch staff. • It helped in getting the timing and communication channel right. • It helps in getting most of the budget and getting the best responses. 25
- 26. Thank You