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Rising competition and introduction of new ways of capturing large amounts of customer data has necessitated advancement in capabilities of organizations to foresee and fulfill customer needs and wants.
Ever more B2C concerns are going all-out to Design Customer-centric organizations. Organizations pursuing Customer-centricity depend on some type of Market Segmentation. Market Segmentations assist in understanding the customer more intimately.
This understanding has to be based on solid data. Even though the collection of customer data is at its highest of all time, organizations are still finding it difficult to apply the insights being offered by Customer Segmentation to propel Change and enhance Performance. This is the Customer Data Paradox. With more customer data, it has ironically become more difficult to derive useful insights from the data.
Data-driven enterprises are sensing that their Segmentation endeavors have been unable to provide anything near the extent of benefit they should. Cause for such failure is development of Segmentations founded on contradictory Business Purpose; purposes that are not widely comprehended or communicated or cannot be immediately acted upon.
Segmentation is indispensable to the process of dealing with the intricacies of constantly evolving and dividing customer clusters and their diverse demands. Need for developing a company-wide Operating Model that is able to transform this extensive data into valuable information so as to enable improved Go-to-Market decisions is essential.
This intricate Segmentation process can be handled more effectively by following the 4-phase approach to Customer-centric Segmentation:
- Delineate Purpose
- Plan around Purpose
- Functionalize Segmentation
- Control Implementation
Segmentation offers clarity and insights regarding customer behavior, tendencies, and proclivities.
Customer Segmentation also amplifies the chances of effectiveness of Marketing and Customer Experience management campaigns, and impelling Brand Positioning and Product Development.
Let us look at the 4 phases in detail.
Delineate Purpose
Clearly defining and understanding the Purpose of Segmentation is necessary to set the base for the type of Segmentation effort that is required to be undertaken—i.e., Strategic or Tactical or both.
Strategic Segmentation is applied for all-embracing, enterprise-wide purposes. Tactical Segmentation is adopted for a far more precise purpose.
Goal is to guarantee that Segmentation results in distinct processes and actions that augment Performance.
Plan around Purpose
Segmentation research needs to be meticulously planned to manifest the Purpose decided, and to make certain that the outcomes are insightful, practicable, and discernable.
Segmentation research has to encompass several dimensions such as behaviors, outlooks, demographics, channel use, inclinations, and profitability.
Functionalize Segmentation
This phase involves determining changes that will take place in the decision processes and communicating them to the concerned business partners so as to deliberate on and devise adjusted metrics that reflect the new capabilities.
Control Implementation
Means for administering change—directed and customized communications arranged to stimulate understanding, interaction, and approval—are required to be utilized completely.
Interested in learning more about Customer-centric Segmentation? You can download an editable PowerPoint on Customer-centric Segmentation here on the Flevy documents marketplace.
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“Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat.” – Sun Tzu
For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to “Tactical” Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.
These frameworks include Porter’s Five Forces, BCG Growth-Share Matrix, Greiner’s Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.
Learn about our Strategy Development Best Practice Frameworks here.
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Profitability is at the core of successful businesses. Many markets do not allow as much top-line revenue increase as the companies would like. Therefore, organizations have to focus on improving the bottom-line.
Boosting the bottom-line entails raising Productivity. Productivity enhancement can be achieved by eliminating redundancies and improving processes that change the company. Process Improvement also means less people needed to accomplish the same tasks.
Change projects—as is the case with most other projects—almost always run over budget and over time, especially when new technology comes into the mix. Causes for failures in Change Management are many and one of them is heavy and bureaucratic teams.
Raising Productivity in teams designated for change projects is well-nigh impossible. A solution to this is Building Effective Teams by keeping teams small—a remedy that has shown its effectiveness time and again.
Smaller teams tend to communicate effectively, decide quickly, do course corrections more easily, work faster, and innovate more.
Large organizations have the tendency of deploying large teams because as the planning process goes on, the scope gets bigger and bigger. This practice is defeating in itself because sight of the goal is lost in the bureaucratic rigmarole.
For projects to be executed swiftly and successfully the following 10 best practices for smaller, more Agile teams are very effective:
- Break Down Problems
- Eliminate Indispensable Roles
- Adopt One-step Decisions
- Foster Trust
- Share Information Freely & Informally
- Increase Visibility & Accountability
- Minimize Conference Calls
- Track Less
- Increase Cross-team Collaboration
- Adopt Technology Faster & Effectively
Let us delve a little deeper into some of the best practices.
Break Down Problems
Dividing the project into distinct problems or separating business capabilities into converged organizational units makes it easier for smaller teams to deliver.
Assorting sizable, complex problems into discrete, attainable pieces and teaching members to develop a Problem Solving Mindset enables small teams to take them on easily and over deliver on them.
An alternate to making teams smaller without compromising on the structure of the organization is to separate business capabilities into focused organizational units.
Eliminate Indispensable Roles
Making sure that individuals with a certain type of skill or key people are not scarce in the organization lest they get pulled by different teams at the same time.
Essential people are wanted by all teams, consequentially their time gets split into such small chunks that no task gets done properly. Operational risk becomes prodigious when dependent on a single person.
It is vital to work away from such scenarios in a team.
Adopt One-step Decisions
Bureaucratic way of decision-making in large teams should be avoided by identifying types of decisions and the decision-making authorities, at the outset.
Foster Trust
Trust speeds up progress, augments quality, and diminishes execution risk. Trust has to be built up by conscious effort.
Share Information Freely & Informally
One of the ways for effective Team Management is to keep communication swift and the only way of doing this is to keep it informal.
Interested in learning more about these best practices for Small, Agile Teams? You can download an editable PowerPoint on 10 Best Practices for Small, Agile Teams here on the Flevy documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
