Targeting customers means that after evaluating the potential of each segment the bank orders the segments that it wants to develop first, second and so on.
Then, by using techniques such as Market Management, Opportunity Management, Sales Management and Customer Management they realise the value.
Segmentation results help inform relationship managers, and forms Step 1 in this proposition development model.
From all the sources of research mentioned in Customer Management Level I and focus groups based on the segments proposition managers and their teams can identify similar themes from the customer research and internal behavioural data to create a deep understanding of customers.
This is real fieldwork, where the bank’s propositions team meet customers face-to-face in their environment, listening to them explain the day-to-day and lifecycle problems they are trying to solve, their frustrations and the dreams that they’re trying to achieve. It’s often recorded so nothing is missed or misconstrued and can be listened to by a wide range of relevant employees. The aim isn’t to solve anything nor to offer ideas or views: but to listen and understand.
The team members merge their findings from this research with the segmentation results and design several solutions as hypothetical propositions (Hypotheses) that help solve customers’ problems or help them realise a dream.
Using sample groups of customers, the proposition manager can then test the proposed solutions against each other and against the bank’s business as usual activity to understand the difference that it will make to develop the optimal proposition for the market.
Proposition managers, and their Marketing colleagues, then use the tools and techniques outlined in Customer Management Level I and this module, and the Marketing Module to define and deliver the right marketing mix to make highly cost effective personalised, relevant, and timely offers to customers and prospects.