Despite what your instincts might say, not all customers are created equally, and a business cannot afford to act like it has one type of customer, giving the same product and level of service to everybody at the same price. Whatever the type or size of your business, many activities—including marketing, sales, and the design and delivery of customer service—are better performed if the customer base is segmented. Because not all customers are the same, it makes sense for any business to segment customers to understand and serve them better, whether according to the value they bring to the business, their geographical location, the types of products they buy, or their degree of loyalty.
Customer segmentation can improve a business’s bottom-line finances. By choosing the segmentation method carefully, you can design service-level differentiation so that customers receive the level of service they prefer and are prepared to pay for, which in turn ensures that all segments of customers are profitable. Anyone whose job affects the customer experience can benefit from understanding the reasons for and different methods of customer segmentation that are available today. Understanding the business benefits of correct segmentation will enable you to answer some key questions:
- What are the business reasons for segmenting customers?
- Which methods of segmenting customers would suit a specific business situation?
- How is customer experience enhanced through improved customer segmentation?
- How will a business benefit from changing its customer segmentation methods?
Are you looking to improve your customers’ experiences and ensure that they receive their preferred level of service? The Accenture Academy course Relating Customer Segmentation to Service Differentiation will provide insight into how to choose the best customer segmentation method for your business and how to ensure that all customer segments are profitable to do business with.