What is customer segmentation?

In the 21st Century consumer expectations have become more complex, and with brand loyalty, increasingly more difficult to maintain, the need to deliver a personalised and tailored customer experience is crucial to any brand’s success. This is especially true for the financial services market, whose consumers engaging across more channels than ever before, against a background of increasing competition.

Segmentation is a fundamental tool for marketers, helping you to understand your audience by dividing consumers into distinct groupings based on shared demographics, lifestyle, behaviours and attitudes.

When we think of segmentation, it’s easy to simplify the process. Grouping customers by products or services purchased, or demographic factors such as age or gender or perhaps we may go as far as segmenting based on buying behaviour. Assuming that two customers will respond in the same way to the same offer, based purely on their prior purchase or route to purchase is not necessarily going to achieve your desired outcome. Instead, gaining a deeper understanding of consumers and anticipating their needs as individuals is key.

Here you will find a range of resources to help you to develop your knowledge of segmentation, marketing and the increased use of Artificial Intelligence. 

Learning to stretch our thinking skills is integral to accelerating our development. This is a really important part of the learning process, and gives you the opportunity to demonstrate your skills and show progression in your Apprenticeship.

Here are two challenges for you to pick from- should you choose to accept, this will help you to develop critical thinking, evaluation skills and encourage creativity.

Challenge 1

Select another organisation that offers a similar range of products to your organisation. Select 2 core products for each organisation and then compare the offering; including service, considering the benefits to customers within different segments.  Evaluate the differences and conclude which products best meet customer needs within specific segments, justifying your conclusions. Make a recommendation to improve the products offered by your organisation. Discuss with your Talent Coach justifying your conclusion and recommendations. 

Challenge 2

Customers are attracted by benefits and value for money, however, there are additional drivers. Identify several ways that your organisation has adapted support for its customers over the last 24 months. Evaluate the strengths and weaknesses of the support provided and compare this to a similar organisation. Conclude which organisation has done more to support their customers, justifying your conclusions and reflecting on the impact on the future retention of these customers.  Discuss with your Talent Coach justifying your conclusion.

Update your Learning Journal in OneFile with your evaluation and your reflections ready to discuss with your Talent Coach at your next review.