Customer Insights and Segmentation
There is no “average” customer. Customers are diverse and heterogeneous. Brands that recognise and respond to this reality are best able to outperform the competition. We help to build effective capabilities and processes to identify, understand, and target your most valuable customers.
Decades of leading marketing research has revealed what we all know intuitively. Companies that are customer oriented outperform the competition.
But a company interacts with thousands, if not millions, of actual and potential customers. All of these customers are different. How can you understand your key customer groups? How can you communicate and interact with them effectively and intimately? How can you align the entire company and front line staff with this approach?
We use best-in-class practices and advanced analytics to gather, measure, and infer customer feedback from vast and ever-growing volumes of customer interactions. Where appropriate, this is combined with qualitative and quantitative market research to build a robust understanding of the customer landscape. Customer insights and segmentation capabilities help your company to succeed in a highly competitive environment. They form the basis of strategic choices and tactical actions for your company.
Simple averages are for companies of yesterday. Successful companies recognise that customer needs and wants are heterogeneous, and look beyond “the average customer” for valuable disaggregated insights.
Yet for many companies, this can sometimes seem daunting. We are strong proponents of the 80-20 rule. Start small, iterate and learn, and grow your capabilities over time. Even a small investment in customer insights and segmentation can yield rich insights and produce huge returns for your company.
Analytics and insights can only be as good as the data they rely on. But many companies end up trying to collect as much data from as many sources as they can. This is often costly, counter-productive, and lacks quality. We keep our clients focused on the most valuable metrics they should measure, and the most relevant data they should collect. This is part of our obsession with delivering results.
We analyse data from across varied data sources such as marketing, CRM, customer feedback, and digital channels. This is augmented with real customer interactions that provide rich qualitative data – interviews, focus groups, and ethnography.
We use rigorous machine learning algorithms and statistical techniques to transform data into insights. This helps our clients to not only understand their customers like never before, but also to anticipate their future actions, tastes, and needs. Our focus is on identifying the most profitable customers and market opportunities for our clients, and charting the path.
There are 3 levels of these capabilities
- Descriptive analytics tells you what happened in the past. It provides context around past events and helps businesses to interpret information and make key decisions.
- Predictive analytics develops machine learning models that can be applied to current data. By having predictions of future trends, an agile customer-centric business can respond quickly to threats and opportunities.
- Prescriptive analytics takes this one step further and suggests various courses of action, and outlines the potential implications of each one. It is like a trustworthy advisor who can see into the future.
We work alongside clients to tailor and implement customer insights and segmentation approaches that fit their needs, budget, and appetite. Every client is different.
We then build robust processes to embed customer and segmentation insights into all levels of the company, based on its unique operational strengths. This helps clients to target investments in the right areas, maintain consistency and rigour, innovate constantly, and reap the benefits.