Not all customers want the same things and a ’one-size-fits-all’ approach can mean over-delivering to some customers and under-delivering to others. Our client, a major energy supplier, had a relatively straightforward segmentation of its business customers based on energy consumption/volumes, number of sites, tariffs, meters, etc. However, the company was looking for a more detailed understanding of customers’ key needs, priorities, attitudes and behaviours; and how these differ between businesses of different types, in order to develop a ‘needs-based’ customer segmentation.
An initial stage of qualitative/F2F interviews with selected customers was followed by a more extensive telephone survey, using a structured questionnaire to collect quantitative data from a larger sample of business energy end-users – this provided the basis of a robust segmentation; an iterative process, examining statistical patterns and similarities within the survey data, in order to establish the most valid segment ‘solution’ and most effective harder/tangible ‘proxy’ data that can be used to identify to which specific segment customers (and prospects) belong.
The results enabled a more differentiated strategy in our client’s dealings with its existing customers and targeting of new ones.