Effective Strategy from Data-Driven Business Insight
Strategic Business Segmentation Service
The ability to extract insight & knowledge from the first-party data collected during everyday operations, quickly and easily summarising it to provide an all-encompassing ‘helicopter view’ of your business and its customer base, can be extremely powerful. Acting on this insight can have a major effect on performance.
Redsella’s Strategic Business Segmentation service lets you benefit from this powerful approach.
How It Works
Our unique segmentation approach automatically analyses the data your business holds to identify the key customer types that exist, based on how they interact with your business. The insight gained provides a better understanding of the requirements of the customer base as well as highlighting any issues faced by the business, guiding the development of effective strategies to address both aspects, improving customer satisfaction and business performance.
Segmentation Process
Machine learning is used to separate customers into segments based on their similarity across a wide range of factors relating to how they do business with you, thus highlighting their needs and preferences. A customer hierarchy is identified which shows how the base splits down into smaller, more similar groups, allowing the optimum segmentation level to be identified in terms of both insight and strategy development. Uniquely, we also assess how these segments are changing over time, providing further insight into acquisition routes, customer lifecycles and retention issues, as well as basic business forecasting capabilities.
Knowledge Extraction
Once identified, the optimum segments are profiled and summarised as a series of Pen Portraits, providing a simple method of communicating the wide range of insight contained in each, as well as their relationship to each other and the business as a whole.
Detailed Insight
Detailed information describing each segment and how it differs from the market or the rest of the customer base is provided in a simple Excel-based profiler tool. This not only shows the unique value of each element considered during the segmentation process but can also reveal the ‘emergent’ properties of each segment, in terms of how other aspects are affected by segment membership. In this way elements not present in the original data, such as qualitative market research results, can be acquired and overlaid onto each segment to enhance its understanding and provide further useful insight.
Strategy Development
Using our ‘SWOT By Segment’ approach, a clear strategic roadmap of recommended actions is derived from the insight gained via the segmentation process. By analysing the nature of each segment, as well as how things are changing, the actions necessary to better serve each group, improve business performance and achieve strategic goals can be readily identified. The segments also provide a ready-made framework for targeting such actions whilst protecting individual privacy, as well as tracking and reporting on their effects. The insight generated by the segments can also be used to drive product and service development, design of creative, copy and promotions, allocation of limited resources and much more.
Combining our ‘bottom-up’ data-driven approach to strategy development with the ‘top-down’ qualitative analysis of changing business needs provided by our partners at Room 42 allows us to guide companies through the organisational & technical challenges they face when transitioning to keep pace with a rapidly evolving marketplace, providing the competitive advantage they need.
The process outlined above provides a view of the business in terms of customer behaviour, but other views are also possible. By focusing on Process, Operational, Logistical or Site level data different insights can be gained which are equally valuable for defining strategy in these areas.
Examples of Strategic Segmentation in Action
- A Storage Firm redesigned their business model to act on the insight gained from a customer usage segmentation, leading to sustained growth.
- A large Supermarket Chain saw a 5% growth in customer spend from initiatives based on a segmentation of annual spend profiles
- A Travel Firm used the insight gained from a segmentation of holiday purchase behaviour to refocus their business strategy to track changing market requirements
- A Financial Website used the insight gained from a segmentation of usage behaviours to provide more relevant services and content, leading to an increase in subscriptions of over 250%
See How Strategic Segmentation Can Benefit Your Business
Redsella have been at the forefront of providing bespoke Strategic Business Segmentations for many years, generating significant value for a wide range of businesses worldwide. To learn more about how your business could benefit, just get in touch:
