Sean R. Collins, Peter W. Dahlström, and Marc Singer

The central challenge of a segmentation strategy isn’t how to develop one—a variety of approaches work—but how to make it useful and integrate it into a company’s ongoing planning and performance-management efforts. The segmentation must explicitly link corporate financial objectives to the behavior of people in a segment and to customer experience goals. This linkage allows general managers and marketers to understand how the experiences of valued customers influence behavior and how behavioral shifts drive core product or service objectives. It also provides predictive (as opposed to static) measures of customer profitability.

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