Customer segmentation and sales targeting
Increased field sales performance is directly correlated to having a thorough understanding of customer sales potential. This is what an analytically-driven customer segmentation will deliver. It determines how much time and effort should be applied to each customer to meet sales targets and business goals.
Who should my team visit? Who should they telephone? When? Why?
A common frustration for sales and marketing managers is having only a limited way to segment (or group) their customers to define and assign call patterns, determine pricing policy and identify an optimum contact strategy. Understanding how to correctly differentiate customers and clearly define their profiles, will ensure your team are contacting and visiting customers with the highest potential at the right intervals.
Common challenges include:
- Oversimplified customer segments (e.g. A, B, C, D) derived solely from past sales value
- Lack of definition and/or quantification around the elements that constitute different customer classifications
- Incomplete profiling resulting in some customers being misclassified into the wrong target groups
- The presence of duplicated customer records disguising what should constitute key accounts
- Limited understanding of customer profitability and potential – not just based on historic trading but also taking account of external factors influencing market sector growth
- Uncertainty regarding pricing policy and who should receive discounts
- Insufficient data accuracy or completeness to support sales and marketing planning or subsequent analysis
We improve targeting with ‘granular’ niche customer segmentation
To overcome customer targeting challenges, Tech4T design granular customer segmentation schemes with profitability and sales potential at the forefront. These dictate pricing, visit frequency, channel (visit, telephone, social, email or direct mail), sampling and value added service strategies. Most importantly, segmentation underpins field force structures needed to drive higher sales.
Customers currently receiving visits but whose value doesn’t warrant one, will be replaced with visits to customers and prospects much more likely to buy. Customers who can easily be serviced by a less expensive method such as telesales or email are also identified.
Additionally, many low spending customers may also spend with your competition. Tech4T use predictive analytics to identify these customers so you can give them more attention and increase your “share of wallet” – their total spend on a product or service.
Our results include
- Better prioritisation of sales visits including a call frequency for every segment
- Customers segmented by status (active, inactive, lapsed) and ranked by potential spend
- Sales transactions translated into customer profitability to drive pricing policies
- Easier identification of cross-sell and up-sell opportunities through basket analysis modelling
- Improved retention of high value customers likely to defect to competitors
- A profile (precise definition) of each segment for developing marketing messages and offers
- Customers and accounts allocated to the most appropriate channel – visit, telesales, email
- Market potential estimates for each segment and your percentage penetration…
Contact us to see how you can often largely negate the impact of a reduced headcount by focusing your team on high potential customers and cutting out visits to low value people using improved customer segmentation and activity planning.