Presented by Vicky Brock, CEO

May 2015

Are you currently targeting different groups of customers in different ways?

What do you want to achieve from this session?

What challenges are you facing?

Why segment customers?

What are the commercial benefits?

How do you create a relevant and workable segmentation?

How do you make the segmentation work and endure in the organisation?

What are the commercial benefits?

Retain more

revenue

Cut costs and

wastage

Improve customer

experience & lifetime

spend

Optimise profits

Because not all customers are equally profitable

What are the business goals?

“... increase revenues net of returns, reduce returns ...”

What are the customer behaviours associated with the goal?

18-25

26-3536 - 54

55+

So what?This is poor segmentation - inactionable

Fraud - returns 95% of all items bought

Disappointed loyal - returns under

20% of items + high attrition rate post

returnExplorer - Returns 21% - 40% of items + low attrition rate

post return

Overbuyer - returns between 75% and 94% of all items

Good segmentationActionable

When you know the behaviours you can find the right data :

Sales

Satisfaction

Order history (recency, frequency, value)

Payment type

Channel type, devices used

•Aligned to goals

• Embodying or affecting behaviourRelevant

• Sufficient commercial impact

• Enough individuals to justify time and costs of targetingSizeable• Distinguishable from other segments

• Can be served by an equally differentiated marketing or service strategy

Distinct

• Can be identified and serviced efficiently

• Reachable by marketing channels currently or potentially availableAccessible

•Has a specific, consistent and measurable characteristicsIdentifiable

Aligned to goals and KPIs

Senior champion

Customer advocate

Quick wins

Show the money £££££ (fear & greed!)

The power of faces –personas, customer profiles, customer stories ...

Ongoing measurement & results sharing ...

Show the money ££££ & the cost of doing nothing ...

Vicky Brock, CEOvicky@clearreturns.com

@clearreturns @brockvicky