ABSTRACT
This chapter focuses on why choosing 'who' to target is important to the Board, selecting the optimal customer segmentation approach, developing a commercially actionable segmentation, choosing where to play and bringing the segmentation to life. To build compelling brands, companies should decide which customer segments to focus on – and crucially which not to focus on. When conducting customer segmentations, marketers need to start by selecting the optimal customer segmentation approach, based on the business issues that they are trying to resolve. Once they have identified which type of customer segmentation to use, marketers need to develop a customer segmentation that is commercially actionable – namely, one that will help to resolve their business issues. Once the optimal customer segmentation solution is chosen, the next stage is to identify what it means for the business.
