The business world is changing faster than ever, and increasingly companies are finding that timely response to shifting customer needs—their desires and expectations as well as their points of irritation and dissatisfaction—is essential for growing revenue. Bain helps companies apply customer insights across the entire business by first asking the big, strategic questions: "Who are our target customers?," "How do we best serve them?," "Where do we need to play?," and then by addressing how to optimize operating models to meet those needs. We also recognize that customers are driven by both rational and irrational mental processes; therefore, it is imperative to spend time with them, observe their behaviors and look for trends.
Bain’s analysis strategies target the data that will help our clients make the most effective decisions. When done incorrectly, segmentation can drown you with superfluous information. Although our analysis is comprehensive, we are careful to keep our clients focused on the data that directly relates to product and process improvements that will generate money.
Bain’s approach to segmentation begins with a clear understanding of our client’s desired outcomes. We define what it is we’re trying to accomplish first because real business objectives can be obscured in the segmentation process when companies try to reach all customers in all capacities.
When clear objectives have been defined, we focus on identifying the customers who are worth more than others—those who are truly tied to our client’s economics. That does not necessarily mean segmenting on economics alone, it entails discovering which segments allow your company to make more profit per customer than your competitors.
The segmentation and insights process will not yield results if customers’ economic value to your business is not the principle consideration. Our strength is tying targeted, priority segments, and the resulting customer insights, to economic understanding to drive revenue growth for our clients. In doing so successfully, we excel where specialist market research firms struggle.
By identifying segmentation objectives and focusing on economics first, we are able to work alongside companies to design and implement segmentation strategies that are tailored to their needs. We consider how clients will use the segmentation—through which avenues will they receive the data, how can the information be effectively used throughout the organization, what resulting actions are necessary and how will those initiatives be practically deployed in the field—to build enduring valuable analytic techniques.