Question

Topic: Strategy

Product Segmentation For Technology Consumer Products

Posted by Anonymous on 125 Points
I work for a wireless cell phone company. I'm trying to figure out how best to segment our product portfolio to assist with product positioning, naming, and product launch activities. Would appreciate thoughts on how others approach this task with limited budget for expensive consumer segmentation studies.
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RESPONSES

  • Posted by ReadCopy on Accepted
    I did some work on this a few years back for a UK telco.

    We decided that customer segmentation MUST be looked at on different levels as the UK mobile market is complex. You are absolutely right about offering customer/segment specific positioning and offers.

    I do not have the answers, I dealt with the UK market 2 years ago, but here are some areas to start looking at.

    CUSTOMER SEGMENTATION:
    By value, behaviour and demographics
    By Pre-Paid/Post-Paid
    Needs and Price Sensitivity

    ECONOMICS FOR SEGMENTATION:
    Customer Value
    Retention and Acquisition Costs
    Payback per customer
    “What if” scenarios

    PROGRAM ELEMENTS:
    Different service levels per segment
    Increase retention
    Increase Average Revenue Per User (ARPU)
    Loyalty Scheme (never really took off in the UK!)
    Identify high value customers, that may churn
    Avoid retention activity aimed at low value customers

    IMPORTANT: Customer Lifetime Value is critical to forming the basis for segmentation, remember over the life of the customer you will incurr costs (acquisition, handset subsidy, network costs, customer service costs, upgrade costs etc)

    Finally … think bundles :-)

    Good Luck

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