We help companies to segment their customer base and to develop strategies to attract and retain profitable customers
One of Dean & Company’s primary areas of expertise is developing strategies for targeting, attracting, and maintaining the most profitable customers. The key first step, and perhaps most challenging one, is deciding which customers to target.
Firms often devote significant resources attempting to gain new customers and measure the results of their efforts in terms of average performance, such as revenue per user. We have seen numerous examples, however, where the key to improved performance lies not in blindly amassing additional customers, but rather in finding the right customers.
While average statistics can give an executive a sense of the overall performance, they fail to reveal a wide variability in profitability masked by the averages. Our work has found that within every business, there are varying degrees of profitability for different customer, product, distribution channel, and geographic segments. In many cases, a focus on averaged profitability has hidden certain segments of the customer base which actually are profit-reducing.
Dean & Company has significant experience isolating the key dimensions for profitability segmentation. By identifying and analyzing the drivers of customer segmentation, Dean & Company can examine the profitability of its clients’ individual customer behavioral segments and then design products and strategies that meet their needs in the most profitable manner.