Course Hero Logo

aberdeen_segmentation - Customer Analytics Segmentation...

  • Purdue University
  • CSR 332
  • Notes
  • DoctorScience30
  • 23
  • 100% (1) 1 out of 1 people found this document helpful

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 4 out of 23 pages.

Customer Analytics Segmentation Beyond Demographics August 2008 Ian Michiels
Customer Analytics: Segmentation Beyond Demographics Page 2 © 2008 Aberdeen Group. Telephone: 617 854 5200 Executive Summary Research Benchmark Aberdeen’s Research Benchmarks provide an in-depth and comprehensive look into process, procedure, methodologies, and technologies with best practice identification and actionable recommendations This report isolates best practices in customer analytics and customer segmentation. The report articulates feedback from 220 organizations. The findings demonstrate how top performing organizations leverage more than demographics for segmentation and deliver demonstrably higher performance as a result. Best-in-Class Performance Aberdeen used four key performance criteria to distinguish Best-in-Class companies. The Best-in-Class demonstrated the following performance: 35% year over year increase in average order value 43% year over year increase in annual revenue 42% year over year increase in customer profitability 25% year over year increase in market share growth Competitive Maturity Assessment “Our existing customer analytics and segmentation efforts are in a constant state of refinement.” ~ Robert Guldi, Director of Sales and Marketing, Whitehill Manufacturing Survey results show that the firms enjoying Best-in-Class performance shared several common characteristics: 57% have processes in place to identify high value customers and market to them uniquely 71% share customer analytics analysis among multiple functions in the organization 75% indicate they have accurate, centralized information in their customer database Required Actions In addition to the specific recommendations in Chapter Three of this report, to achieve Best-in-Class performance, companies must: Calculate customer lifetime value.Forty-seven percent (47%) of Best-in-Class companies currently measure customer lifetime and 32% indicated they are confident in this measurement (versus Laggards, 78% of which don't even calculate customer lifetime value). Integrate multi-channel technologies and consolidate customer attributes to one centralized database.Eighty-one percent (81%) of Best-in-Class companies use past business history for segmentation. Sixty-five percent (65%) use behavioral variables collected from web analytics tools, forms, surveys, and other customer feedback tools for customer segmentation. Fax: 617 723 7897
Customer Analytics: Segmentation Beyond Demographics Page 3 © 2008 Aberdeen Group. Telephone: 617 854 5200 Fax: 617 723 7897 Table of Contents Executive Summary.......................................................................................................2Best-in-Class Performance.....................................................................................2Competitive Maturity Assessment.......................................................................2Required Actions......................................................................................................2Chapter One: Benchmarking the Best-in-Class.....................................................4Business Context.....................................................................................................4The Maturity Class Framework............................................................................6The Best-in-Class PACE Model............................................................................7Best-in-Class Pressures and Strategies...............................................................8Chapter Two: Benchmarking Requirements for Success..................................12Competitive Assessment......................................................................................12Capabilities and Enablers......................................................................................13Chapter Three: Required Actions.........................................................................18Laggard Steps to Success......................................................................................18

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 23 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Staff

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture