Engaging your people with your customer segmentation to drive profit
Updated: Apr 17, 2019
Our latest breakfast briefing focused upon how to bring customer segmentation to life internally, how to engage employees and in doing so how to drive performance and profit.
It’s a simple sum: Customer segmentation + Engaged employees = Increased performance and profit
Our Managing Partner Sarah Fasey started the session with the question ‘Why Segmentation’. We all know they are often highly complex projects, and whilst successful segmentation can transform business performance, the key to realising value from the process is to recognise that it is essentially an exercise in culture and organisational change.
Sarah highlighted our shared belief that most customer segmentations are owned and managed by marketing teams and most marketing teams apply segmentation to customer acquisition as their priority. This in effect means that the immediate benefit is more leads, better leads, more new customers and a lower cost per new customer – all of which improves marketing performance.
But we believe that when segmentation is owned and implemented purely in a marketing context, the opportunity to transform the broader business performance is lost. We believe:
Successful segmentation is a process of changing the way your people think about your customers and how they behave as a result.
And if segmentation is as much about culture change as it is marketing strategy, then it shifts how an organisation creates value through segmentation:
From building marketing capability to building a customer-centric culture
From focusing on strategy and process to focusing on people and service
From advantage through complexity to advantage through simplicity
From PowerPoint documents to learning and engagement tools
Whilst the session highlighted the key enabler for delivering successful segmentation programmes as ‘engaged employees’, it also provided the key building blocks to ensure segmentation sticks internally:
Motivating all employees around a simple strategic story – the ‘why ‘we are doing this
Creating a simple and memorable way to communicate segmentation – the single thing that defeats projects like this is their complexity, having a simple construct will ensure segmentation sticks
Think of ways to get your people to understand and empathise with your customer segments
Help them to understand how they can put customer segmentation into practice in their day-to-day jobs and act upon it daily
Ensure they feel supported – it should feel like you are all in it together. Segmentation can be quite daunting; it should feel like an organisation-wide effort.
The session then introduced two client case studies as a means of highlighting the typical challenges faced and giving real examples of how segmentation has been brought to life for employees in ways that are practical and actionable.
Shelter Supporter Segmentation Journey
Andrée Gowar, a Managing Partner at dragonfish, presented the Shelter Supporter Segmentation Journey. The session started with an uplifting and motivational video aimed at corralling employees around one unified objective. ‘To develop a shared organisational view of Shelter supporters and to tailor supporter journeys as a means of increasing supporter interaction with the brand and deepening supporter relationships with the cause.’
Andrée presented in depth how the Shelter Supporter Segmentation was bought to life through a visual and verbal shorthand, the journey taken and the challenges faced along the way. She also provided insight into the embedding training sessions that are focused upon learning through play and the segmentation toolkit; a practical guide to be used by employees when planning future fundraising and campaigning activity.
There is also the recognition that training and toolkits are not enough to keep segmentation alive, we are currently working with Shelter on a variety of initiatives to ensure segmentation is ‘always on’. These include creating regular motivational moments through ‘bringing the outside in’ as a means of creating project energy. Segment Supporter Champions are also being identified internally to act as their supporter spokesperson.
"You never really understand a person, until you consider things from their point of view, until you climb into their skin and walk around in it." Harper Lee, To Kill a Mockingbird
Andrée ended with a poignant quote from ‘To Kill A Mockingbird’ by Harper Lee “You never really understand a person, until you consider things from their point of view, until you climb into their skin and walk around in it.” This is something all employees should aim to do as part of their segmentation project, we should all be better informed, more empathetic and better placed to make decisions placing our supporter or customer at the centre of everything we do.
Fitness First – Increasing Profitability through Segmentation
The second case study presented at the session focused on how Fitness First are driving profitability by leveraging their new Customer Segmentation.
Ali Powell, Global Head of Commercial and Brand Marketing at Fitness First, gave an introduction into the new segments and how segmentation is being used to drive smarter customer acquisition, improve customer retention and increase customer lifetime value. Ali highlighted how the new customer segmentation is being applied across the business to drive decisions from media selection to business partnerships; from PR & Social Media to CRM & Comms; from Digital Marketing to Customer Service.
Niall Cluley, Global HR Director at Fitness First, then focused upon the people aspects of customer segmentation and embedding segmentation through service. He shared his experiences of working with dragonfish to develop a simple construct to get club team employees thinking about different types of members and their needs. Smarter service styles have been developed which are easy to articulate and act on to begin delivering a tailored service based on a member’s gym confidence. In terms of practical delivery, Niall shared elements of the multi-channel learning and engagement programme, including infographics, online training, contact centre conversation flows, workshops, a manager’s guide and a service standards book – all part of a broader, longer-term change programme.
Ali concluded the case study with a detailed look at how Fitness First is measuring success and impact of the customer segmentation programme. She shared the new Fitness First member experience dashboard that aims to capture member satisfaction by e-surveys after each visit. This solution is a first within the sector and provides real-time customer satisfaction data to club managers which can be acted upon quickly.
The session concluded with a lively and interesting discussion with participants sharing their experiences on embedding segmentation, the challenges faced and the obstacles overcome.
The event received extremely positive feedback both in terms of content and presentation delivery.
To find out more about how we can help engage your people with your customer segmentation and drive performance and profit, contact firstname.lastname@example.org
To register for future dragonfish events visit: www.dragonfishuk.com/events