Effective customer segmentation that allows companies to allocate scarce resources where they'll deliver the highest payoff is the foundation of Bain's approach. We employ rigorous quantitative analysis, but Bain's customer research also includes real customer interaction - customer interviews, direct observation of purchasing and other behaviors, and focus groups - that answers the essential question, "what do our most important customers really want?" We get to the "why" behind the "what" and "how many" that so much customer research fails to address. This is the source of true customer insight. We help clients get their customer segmentation right, implement it effectively, and keep it fresh by developing three skills.

• We identify new opportunities for clients to deepen relationships with the loyal, profitable customers they know best - the segments we call the Design Target - as a foundation for appealing to new groups.
• We work with clients to marry their customer insights to their organization's unique operational strengths.
• We help clients keep their segmentation insights fresh by enlisting their customers' help and continued feedback to spur innovation, navigate shifts in the marketplace, and anticipate changing tastes and needs.

® NET PROMOTER is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

To find out more about Bain's work in this capability area, please contact the practice.