Why Read This
A usable market segmentation analysis is one of the keys to any market-driven company's success, yet many segmentations fail. This is troubling not only because these types of failures tend to be expensive, but also because the need for organizational alignment that segmentation can drive is widely recognized. In general, a combination of too much complexity and lack of organizational buy-in drives segmentation failures. Firms can successfully hurdle these problems by using a relatively simple share-of-wallet-based segmentation approach. Firms should ensure that they survey their customers on share and size of wallet, integrate share of wallet into their segmentation approaches and customer databases, and continue to build on their segmentations with more granular analysis that looks at segment motivations.