Valued but Not Equal - A Case for Customer Segmentation

 

In this episode, Dr. Michelli addresses the nuanced reality that while customers may not always be right or contribute equally, they invariably pay the bills. He explores the diverse approaches of business leaders towards customer prioritization, echoing Peter Drucker's principle that businesses exist primarily to "create a customer," and through them, profits are generated.

Dr. Michelli discusses the strategic importance of segmenting customers based on their engagement and spending patterns—low, medium, and high frequency/spend—and tailoring services to each group to optimize resource use and enhance customer loyalty. He emphasizes the necessity of providing quality service across all segments while varying the level of customization and personalization to align with customer value to the business.

Key takeaways include identifying and categorizing customer segments, ensuring a baseline of respect and quality in service delivery, customizing services to efficiently allocate resources, and using customer data to guide service enhancements and recovery efforts. Special attention is given to high-value customers, advocating for significant investment in personalized services and proactive service recovery to foster loyalty and ensure satisfaction.

Listeners can obtain a detailed infographic based on this podcast from Joseph's website. Additionally, those wanting to speak to Joseph are encouraged to contact him directly. If you find value in this podcast, please like, rate, comment, share, or subscribe!