It’s a complex and competitive market out there and any business is more likely to grow market share if it can offer products tailored to specific customer types.'
Central to this is a detailed understanding of customer needs, including the various push and pull factors that drive customer decisions and ultimately their final purchase choice.
As an example, one of the largest segments of the UK leasing market, the 50+ age group, is also perhaps the least well catered for.
At first glance this seems a segment unlikely to be profitable. However, a more data informed outlook would show that potential customers in this segment are:
The main risk associated with creating a product for this segment is the asset maintenance cost, as this generally increases exponentially with asset age. However this can be quantified and built into the product via fixed maintenance costs which, as an added consumer benefit, provides the customer with known costs and therefore peace of mind
Good data analytics is essential to understanding your customer in order to create better and more relevant products for each segment.
At Blue Label Consulting we can help develop your analytics capability and increase growth opportunities across your customer base. Contact us here if you are interested in finding out more.
Founder and Managing Consultant
Blue Label Consulting
Brendan launched Blue Label Consulting in 2011. With innovative use of Data through AI, ML and other quantitative methods, he delivers robust analytics and actionable insights to solve business problems.