Customer Segmentation

Customer Segmentation

200k+ customers • 1500+ employees • $600M+ Revenue

The client was transitioning to a more customer focused organization and away from its traditional product- led approach. A key enabler to reimagining the sales and service operating model was understanding the organization’s customer base – what are the key segments, which segments are growing, which segments are profitable and how do we mobilise the organization around this?

Business Impact

⊹ Customer segmentation driven workforce planning and resource allocation to channels and markets
⊹ Improved average revenue per acquisition through targeted segment-based approach
⊹ Improved business development productivity
⊹ Visibility on potential cross and upsell opportunities of existing customers
⊹ Alignment of strategic sales and marketing investment to focus on key core and growth customer segments

Sales & Service Model

200k+ customers • 1500+ employees • $600M+ Revenue

The client was focused on transitioning from their traditional advertising business model. Involving a large labour and customer claims cost base, this setup resulted in poor net promoter scores and unnecessary expenditure. The goal? Evolve to a more nimble, customer focused, digital advertising business - enabling them to compete with domestic and international players.

Business Impact

⊹ Improved customer experience & reduced customer churn
⊹ Reduced customer claims through early issue remediation
⊹ Improved Sales productivity by segmenting service related activities
⊹ Improved average revenue per acquisition through targeted approach
⊹ Customer segmentation driven workforce planning

Profitability Models

200k+ customers • 1500+ employees • $600M+ Revenue

The client had a well-established annual budget process, which drove much of the strategic decision making on product pricing, as well as the sales and service organization structure. Employing the traditional drivers of revenue (and expenses) in decision making, the client experienced profitability continue to decline, despite introducing initiatives focused on efficiencies and improving customer acquisition and retention.

Business Impact

⊹ Redesign of the Sales and Service strategy
⊹ Rebalance the profitability of the customer base, with a focus on nurturing profitable customers
⊹ Reduction in the number of loss-making customers and channels
⊹ Acquisition sales effort focused on customers with propensity to upsell ⊹ Pricing rationalisation of products
⊹ Significantly improved product profitability margins across print and digital assets