Customer Segmentation

Customer Segmentation

Customer segmentation involves sorting customers into groups based on similar characteristics. This process provides service groups with an understanding of customer group differences and more:

• Who is ordering, receiving, and using the products/services? Similarly, who is not?
• What categories of products/services are delivered to which customers? 
• Are particular customer segments using certain products/services more than others? If so, why?
• Has the delivery of products/services changed (e.g. increased, decreased, etc.) for customer segments? Why have these changes occurred?
• How can a service group tailor product/service offerings to better meet the needs of its customers?
• Do service group IT systems provide enough information to answer these questions?

Often, the data to answer these questions are available but not examined.  These data may provide some valuable insight into decisions regarding future products/services (e.g., specific products offered, service hours, etc.).

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