The Hard Road to Good Customer Segmentation

Anthony Tjan’s Harvard Business Review blog post, Approximately Correct Is Better than Precisely Incorrect, perfectly illustrates the value of customer segmentation.  Your customers are different, and treating them all as if they were the same results in poorly targeted offers, lower sales, and dissatisfied customers.

The trick is that customer segmentation is hard.  Otherwise, everyone would be doing it well!  The ideal segments are cohesive (everyone in a segment has similar behavior and preferences) and actionable (you can identify which segment a customer is in and respond appropriately).  There are more or less three generic flavors of customer segmentation, and all of them have drawbacks. Continue reading The Hard Road to Good Customer Segmentation


A Twitter Customer Segmentation

Twitter has certainly seen its share of hype, but along with Facebook and followers like Google Buzz, the company really does herald the rise of a new communication paradigm, the status update.  Whether due to nature or nurture, people seem wired to respond to headlines, and the status update feeds on that desire for short, punchy communication.  Based on the explosion of text messaging from almost nothing to hundreds of billions of messages per year just in the US, the status update medium should also be transformative.

With that in mind, here’s an only slightly tongue-in-cheek segmentation of Twitter users based on my experience with the service so far. Continue reading A Twitter Customer Segmentation