How 'Generation V' Will Change Your Business - WikiLeaks (15 pages)
1 recommendation for crm managers • 0 achieve customer loyalty through relevance • figure 6. the evolution of customer segmentation
Publication Date: 3 January 2008/ID Number: G00153798
Page 11 of 15
© 2008 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
customers according to which ones are actively buying. This approach is useful in some
tactical situations, but it fails to consider customer needs.
• The shortcomings of segmentation based on customer value is driving growing interest
in segments based on customer needs, effectively creating segments based on why
customers buy certain products.
• An emerging approach is a wants-based segmentation approach. Here, companies are
providing avenues in which customers and companies can explore and discover what
customers desire, and provide the same. Virtual worlds, such as Second Life, are
examples of companies setting up sandbox scenarios, where multiple personas can
explore wants or "desires" that companies are attempting to fulfill.
Figure 6. The Evolution of Customer Segmentation
Needs-Based
Segmentation
Value-Based
Segmentation
Product-Based
Segmentation
Wants-Based
Segmentation
•
Life cycle
•
Life stage
•
Lifestyle
•
Current
value
•
Future value
•
Lifetime
value
•
Owned/nonowned
products
•
Demographics
•
Persona mgmt.
•
Implicit behavior
•
Sandbox
scenarios
Customer-
Centric
Organization-
Centric
Product-
Centric
Persona-
Centric
"Tell Me What
You Need."
"What's the
Bottom Line?"
"The Only Product
You'll Ever Need."
"Let's Explore What Your
Persona Really Wants."
Needs-Based
Segmentation
Value-Based
Segmentation
Product-Based
Segmentation
Wants-Based
Segmentation
•
Life cycle
•
Life stage
•
Lifestyle
•
Current
value
•
Future value
•
Lifetime
value
•
Owned/nonowned
products
•
Demographics
•
Persona mgmt.
•
Implicit behavior
•
Sandbox
scenarios
Customer-
Centric
Organization-
Centric
Product-
Centric
Persona-
Centric
"Tell Me What
You Need."
"What's the
Bottom Line?"
"The Only Product
You'll Ever Need."
"Let's Explore What Your
Persona Really Wants."
Source: Gartner (December 2007)
Markets will be increasingly based on intangible elements of the product. The idea of one value
proposition applying to every product purchaser is increasingly unlikely.
6.1 Recommendation for CRM Managers
Move away from product-centric segmentation and involve more value- and persona-based
segmentation.
7.0 Achieve Customer Loyalty Through Relevance
Most companies say they want loyal customers, so they try to build relevancy in marketing as a
way to facilitate loyalty. The steps toward garnering customer loyalty involve the basics, such as
promising an item that a customer needs and then delivering it (for example, an airline promising
to take customers from Point A to Point B, and getting them there safely and on time).
This system also works in the virtual world. As you move up the loyalty hierarchy and toward true
loyalty, eliciting a "feel-good" factor from interactions leads to continued relationships, such as
ascending a six-step staircase (see Figure 7).