2 CRM Understanding customer differences and customisation

2 CRM Understanding customer differences and customisation

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  CRM : Understanding CustomerDifferences and Customisation
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  Introduction Market segmentation isthe activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. The overall aim of segmentation is to identify high yield segments – that is, those segments that are likely to be the most profitable or that have growth potential – so that these can be selected for special attention (i.e. become target markets) It is done on common characteristics such as shared needs, common interests, similar lifestyles or even similar demographic profiles.
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  Definition Market segmentation isthe process of dividing up mass markets into groups with similar needs and wants. The rationale for market segmentation is that in order to achieve competitive advantage and superior performance. What may be segments : (1) Segments of industry demand, (2) Target specific segments of demand, and (3) Develop specific 'marketing mixes' for each targeted market segment.
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  B2B & B2C Business-to-business(B2B) sellers might segment the market into different types of businesses or countries. Business-to-consumer (B2C) sellers might segment the market into demographic segments, lifestyle segments, behavioural segments or any other meaningful segment. Market segmentation assumes that different market segments require different marketing programs – that is, different offers, prices, promotion, distribution or some combination of marketing variables
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  Segmentation → Targeting→ Positioning Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles. Targeting is the process of identifying the most attractive segments from the segmentation stage, usually the ones most profitable for the business. Positioning is the final process, and is the more business-orientated stage, where the business must assess its competitive advantage and position itself in the consumer's minds to be the more attractive option in these categories.
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  Broad Segmentation (B2C) ●Demographic : Young, Upwardly-mobile, Prosperous, Professionals (YUPPY); Double Income No Kids (DINKS); Greying, Leisured And Moneyed (GLAMS); SecA, B ● Geographic : Metro, Remote, Urbanites, Inner-cities, States, Pin Codes ● Behaviour : Purchasing, consumption or usage behaviour. Tech-savvy (aka tech-heads); Heavy users, Enthusiasts; Early adopters, Opinion Leaders, Luxury-seekers, Price-conscious, Quality-conscious ● Contextual and situational : Actively shopping, just entering into a life change event, being physically in a certain location or at a particular retailer ● Psychographics : Lifestyle, social or personality characteristics. Socially Aware; Traditionalists, Conservatives, Active 'club-going'
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  Broad Segmentation B2B ●Top Verticals (Telecom, BFSI, Govt, Manufacturing) ● Best Customers, (Enterprise, Midmarket, SMB) ● Horizontals : Product wise, Renewal, upsell, cross sell, Alliance, synergy ● Territory wise : Channel wise ● Source of Leads
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  Segments Connect DisparateTech / Disciplines ● Advertising (Attract) ● Analytics (Measure) ● Content Management (Engage, Nurture) ● Marketing Automation (Convert) ● Implementation (post Sales) ● Service (post Sales) All connected by CRM
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  Targeting ● Evaluate potentialof each segment (Pestle Data Science, Analytical) ● Select one or more segments (Try one at a time) ● Segment big enough of market size,small enough to focus ● Core Brand Promotion ● Online Value Proposition ● Messaging ● Online / Offline marketing mix
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  Positioning ● Functional Positioningis focused on the aspects of the products or services that can fulfill consumers' needs or desires. ● Symbolic Positioning is based on the characteristics of the brand that fulfill customers' self-esteem. ● Experiential positioning is based around the characteristics of the brands that stimulate the sensory or emotional connection with the customers. ● A combination of the three is key to positioning the brand at a competitive advantage to its immediate competition. Overall, positioning should provide better value than competitors and communicate this differentiation in an effective way to the consumer. ● Customer perceptions have a huge impact on the brands positioning in the market.
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  Case Study (Tesco Club Card) https://en.wikipedia.org/wiki/Tesco_Clubcard https://www.marketingweek.com/tesco-clubcard-loyalty/
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  Ajit Joshi 9820305245