Three Approaches to Customer-Centric Understanding
- Topics:
- Positioning and Segmentation
- Source:
- Montgomery Research
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Overview: Customer segmentation is the foundation of customer insight. It is the core organizing structure from which all else springs. Truth is an elusive thing, and nowhere is that more evident than in understanding the value — and values — of a customer. Becoming customer-centric is an increasingly popular goal for many companies, but confusion reigns regarding the best way to achieve customer understanding. Some believe that customer understanding comes from thoroughly understanding customer value and profitability. Others see "customer value analysis" as a means of understanding the set of buyer needs and desires that form the basis for purchase decisions. Still others maintain that customer understanding comes from behavioral segmentation. One of the approach to customer understanding is the use of behavioral segmentation, especially analysis of customer data resident in customer databases. Database-enabled segmentation addresses a critical challenge of customer buyer values analysis — the inability to efficiently assign segment membership to all customers.
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Format: HTML | Date: Jun 2001
