Customer segmentation: An essential checklist

The key questions you need to answer to develop a successful customer segmentation strategy.

1. Who do we want to talk to?

• Customers
• Lapsed customers
• Potential customers

2. What do we know about these groups?

• Name
• Address
• Phone number, email address
• Purchase history
• Profitability
• Contact history

3. Where do we hold this information?

4. How up to date is it?

5. Does it comply with data protection rules?

• Read the data protection good practice guides produced by the Information Commissioner's Office

6. Have we checked telephone and fax preference service?

You may not make unsolicited sales and marketing calls to people who have registered with the Telephone Preference Service.

7. Are email addresses opt-in?

8. What is the buying history of customers?

• Are they:
  
  • Big spenders
  • Specialist buyers
  • Occasional shoppers
  • Old customers.

9. Have we segmented customers into different types?

10. Have we developed profiles of each type of customer?

11. Is our marketing communication targeted?

12. Are there some easy wins?

13. In cold contact what is our response rate?

14. What is our conversion rate?