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Ten Steps for Building Foolproof Customer Segmentations
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"Ten Steps for Building Foolproof Customer Segmentations"

Successful Segmentation for Greater Organizational Adoption

The right customer segmentation can help marketers and business leaders streamline their processes, drive better responses, and higher-quality customers. But what “What does a successful segmentation look like?” A successful segmentation effort is first and foremost one that is adopted and actionable. Oftentimes, bad segmentations are built—ones that are hard to describe, unactionable in business processes, too broad or too specific—and become obsolete quickly. 

Here are 3 out of 10 steps you must take to protect against your efforts ending with a thud (literally, the 100-page PowerPoint hitting the bottom of the shredder bin).

  1. Set clear descriptive/predictive objectives upfront
    Before any work is started, before a question is written, or before a database query is made, everyone needs to be in agreement on what the segmentation will be used to predict / discriminate, and what it won’t.
  2. Set actionability requirements upfront
    Actionability is the ability for a segmentation to be used to actually contact or describe specific customers.
  3. Decide where to be on the actionability/insights spectrum
    This is kind of an addendum to the second to-do on pre-building actionability, but leaders should think about whether or not they should do any primary research at all.

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