Improve Your Ability to Segment Customers
Segment customers, both by size and by need, to identify your targets. You increase your sales by selling more products to your current customers and by finding new customers. But, not all customers are equally valuable to you. Your best customers are the core of your business. The purchases these Core customers make from you provide a good profit. Other customers are less valuable to you than the core customers. Some will purchase products from you, but at low prices. Or, they will be costly for you to serve because they require a lot of service but buy little from you. Others will not buy from you at all. The time and resources you spend on them are wasted.
The segmentation activity on the Basic Strategy Guide identifies your core customers and creates new segments of these core customers according to their needs.
This Segmentation Activity covers the first twelve steps of the Basic Strategy Guide. The last step includes the use of several thousand segmentation concepts and examples.
Step 1: Define the products, competitors and customers of the business.
Step 2: Segment all the industry's customers by size.
Step 8: Find the Company's strengths and weaknesses on the Size/Role matrix.
Step 9: Separate the sources of the Company's change in share.
Step 10: Compare the Company to the industry on the components of volatility.
Step 11: Classify and assign company objectives to each current and potential customer.
Step 12: Develop new need-based segmentation.
To begin these steps, go to Basic Strategy Guide on the Navigation Bar.