How Customer Segmentation Made in Anatomy of Decisions

Any good business likes to have a proper understanding of its customer mix. The idea is to reach out to the right customer at the right time using the right product by using the right delivery channel. 

 Customer segmentation is one of the most important parameters in business. It’s no secret that some customers are more profitable than others. And it is beneficial to identify those customers so that the company can focus on them. 

In the insurance domain as well, customer segmentation is very important. Let’s hear from Ashish to know why.
 

One way to achieve that is by segmenting your customer base and creating a customer life stage mapping and then mapping every customer against such a base. This segmentation could be as basic as categorizing your customers on the basis of premium paid, or his annual income or age or a combination of several such factors.

Once such segmentation is created, we map each customer against one of the segments and identify his / her needs as per his life stage. The final piece of the puzzle is to then map your product offerings on the basis of customer life stage and his needs. 

The above framework is used in a variety of ways – for driving cross-sell, for product planning, for deciding which segment to target to increase sales (planning)