Wednesday, January 21, 2015

Shall You Segment Your Customer Groups

Interesting article I found back in my Twitter hotlist. It questions why so few customer segmentation analysis provide great results. It appears that one of the top issue with customer segmentation is the lack of time companies give it to experiment and to grow. Indeed, when you are working on customer group, in a customer relationship management program, you need to work on the lifetime value of your customer. Therefore, it requires time for the efforts you put on your customers segments to test, provide promotions, and then measure the results of such an effort.

One of the problem in our nowadays world is that things come at you faster. Reactivity is more valued than long term investment and view. In order to get sustainability to one project, you need to get data fast to feed the board of executive to get time and resources to go on with your projects.

Customer relationship management must be a long term vision and project. It is important to be able to communicate well in your company in order to explain what is at stake.