[4] SegmentationImplementation - Putting your Segmentation Where it Belongs PUTTING YOUR SEGMENTATION WHERE IT BELONGS Implementation Tactics for Taking

[4] SegmentationImplementation - Putting your Segmentation...

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Putting your Segmentation Where it Belongs 1 synergy. discovery. results. “For many firms, market segmentation has failed, not so much because there was a failure to find appropriate segments, but more often because there was an inability to translate the segment definitions to customer and prospect databases .” For many firms a market segmentation strategy is essential for effective and efficient marketing management. Well-segmented markets allow the firm to craft specific product and value propositions to individual customers and prospects. However, for many firms, market segmentation has failed. Not so much because there was a failure to find appropriate segments, but more often because there was an inability to translate the segment definitions to customer and prospect databases, thus making it difficult to efficiently reach those segments and address their specific needs. This white paper will demonstrate a method of leveraging widely used commercial segmentations, like PRIZM, Personicx and P$YCLE to develop customized segmentations. These customized segmentations make a direct linkage to customer and prospect databases extremely easy. In addition, having the custom segmentation based on widely used commercial segmentation allows companies to link diverse data sources to build very powerful marketing databases. This white paper will show how this technique was successfully employed in the context of a case history in the telecommunications industry. This approach works effectively for any B2C company using databases of customers and prospects to drive their marketing program. Other closely related industries that could easily apply these techniques include, telecommunication, cable, media, energy, real estate/housing, financial, hospitality/travel/leisure/recreational, computer, and healthcare insurance industries. P UTTING Y OUR S EGMENTATION W HERE IT B ELONGS Implementation Tactics for Taking your Segmentation off the Bookshelf and into the Marketplace
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Putting your Segmentation Where it Belongs 2 synergy. discovery. results. “The information that you collected from the respondents told you so much about what they buy and why they buy, however, you do not have this same rich information on your customers and prospects .” You just finished your segmentation and feel really good about the segment descriptions and color glossy pictures that go with them. Now comes the easy part, the implementation. To start, you first have to assign each customer and prospect to your newly formed segments. The information that you collected from the respondents told you so much about what they buy and why they buy, however, you do not have this same rich information on your customers and prospects. So now you need to build a model that takes the information you do have on your customers and prospects and score them into the new segment definitions. This isn’t looking so easy because the information that you do have on your customers and prospects is so limited and has so much missing data in it.
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  • Fall '14
  • Stoltman
  • Marketing, PRIZM, PRIZM clusters, synergy. discovery. results

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