Product and segment mines
Hello. We continue the series on customer experience management. (R) - Roman Nokhrin - Asks questions, (A) - Arsen Dallakyan, managing partner of the consulting company Russian Behavioral Unit - answers.
(R) Recently, many companies have seen a transformation in their management approach. Before, it was generally not clear what - how it turned out. Then came the segmented approach. We decided that we serve the "rich" clients this way, mass clients - like that. And they directly divided the teams, shared all the processes.
Time passed and now we have come to a grocery approach. There is some kind of product, the team stands out, does it well, everything is OK. But there are 500 products, one sales force, vanity begins. If this is a product in which developers need to be connected, then they do not reuse their code between teams, chaos begins in all directions. I want to understand: what to do and how to effectively manage it?
(A) There is such a problem. In a nutshell: before we fought with “functional mines” and did not notice how we got into “food mines”, when all life is concentrated in one product and the product is the center of the universe.
There is a classical approach in which everyone says that one should not be product- oriented , but customer-oriented , and, if we go further, then person-centric .
As a rule, the result of such a product-oriented approach is that a company has a scattering of products without a single management strategy. There is only one product plan - how to manage it. This is especially true when we all now want to become ecosystems, we want to surround the client with many of our products, partnerships and so on. This is one of the most important issues. There is no monosyllabic solution and answer. But what do we know?
First segmentation. You said well that there is classical segmentation and it does not die in any way.
(R) What should?
(A) Must.
We offer different services, depending on how much money the client has. She is the simplest, because she can easily identify the client.
But segmentation is always needed only in order to isolate from the total mass that piece of customers that, for some reason, is more likely to be bought.
And you focus on them.
It is necessary to identify this reason. We call it a factor influencing behavior. If a person has two million rubles, does he have a greater likelihood that he will issue a product for premium customers or he will go to normal. What drives them? He keeps the account balance and thinks where to throw it? No, he doesn’t think so.
I recently had a strategic session of a bank sanitized by the state, and there the manager asked: "How do we provoke a client to take and transfer money from one bank to us, although we have a story behind us that is not reliable." The manager needs 2 million clients to roar. Answer: the client does not sit and does not think where to transfer these two million. No, he thinks in completely different categories - how to solve his own problem. And 2 million or 50 thousand or 200 million is what he has. He does not identify them as a transition scale in your segmentation.
What could it be? For example, in an oil company - gasoline (diesel), at first glance an ordinary commodity. But there they revealed a segment of cargo transportation. Why is trucking a separate segment? Because in the cost of their services, the cost of diesel fuel is 40%. That is, the tariff is 100 rubles, which means 40 rubles will go to diesel fuel. It is very important.
(P) Accordingly, they have a much higher sensitivity to this.
(A) Both sensitivity, attitude, and motive as they choose fuel companies and what they look at are completely different than if you are a bank and you have 10 premium cars to carry vice presidents and you spend 2000 rubles on gasoline. These are different factors of influence.
And then divided. When you select a segment - we call it behavioral, that is, by factors that influence behavior, you begin to look: what kind of life he lives, what problems he faces.
For example, there they were faced with the fact that it is more difficult to look for customers. The price of gas has risen in price, customers are sensitive, they have gone to others. How to look for them? We need new tools, some platforms and so on.
The second problem is how to identify the routes on which to drive in order to drive through the correct gas stations. Yandex navigator did not show it at that moment, did not show prices. Now I started, but then it was not. That is, the problems that lie precisely in this behavioral segment begin to be revealed.
Identified these problems and string products on this scenario. They said that this segment consumes these products. And we manage the entire segment, and not the product separately, to increase the profitability of the entire segment, rather than a single product.
(R) Thus, it turns out that this is essentially CJM, but not limited within the company, looking at the product, but with a focus on the client, what is in his life: where, what products, services and services to insert.
(A) That is, returning to the mines. Ideally, the mine is neither grocery, nor segmented, but scenario. There is a client who, according to a certain criterion, belongs to a group. And the team does not deal with the product, but with the product and service, and so that the billboard with your advertisement is on the way for this client.
Yes, in fact, we again return to the pumped segment management. But what is the problem of social segmentation? That it, firstly, does not determine the fact that you will buy, and secondly, the segments begin to intersect with each other. I have 2 million in my account, but I do not want to use the premium segment, I do not need these your concierges.
(R) At the moment, I have different cards, but from the time when I didn’t have a salary at all and until the time when I got these cards, I almost never used anything, I still don’t use it.
(A) And this is normal behavior!
(R) It turns out that these products did not stimulate me in any way, and I changed 3 segments in the opinion of the bank. It turns out, according to the behavior, I'm generally in some other behavioral segment.
(BUT)
(R) And as I flew only once a year, I continue.
(A) And it turns out, this is also a segmented approach, only at a new level of evolution. And the groceries do not disappear. Everyone thinks "we just created them, what to destroy?" No, they do not disappear.
It's just that they are like clusters of grapes strung on a common scenario.
And it appears here - the customer experience owner , who is no longer responsible for individual products, but for the profit that this entire segment brings.
CX directors are now appearing in companies, but they are far from this function, they are for service. (Why so discuss in the first part )
And for managing behavioral segments - this is not yet.
(R) So, to summarize, we get the following. We walked evolutionarily from income segments, now we have come to the product. And the next thing it would be great to come to, albeit marked “again” is segmentation, but by behavior, and not by social security.
And the second thought - CX-manager - is not one position, but each segment has its own CX, which builds this entire chain.
(A) Everything is true, but we call it CX-Owner, and above them all - CX-Director.
If it’s more convenient for you to watch the video version of the conversation, follow the link and subscribe to the channel.
(R) Recently, many companies have seen a transformation in their management approach. Before, it was generally not clear what - how it turned out. Then came the segmented approach. We decided that we serve the "rich" clients this way, mass clients - like that. And they directly divided the teams, shared all the processes.
Time passed and now we have come to a grocery approach. There is some kind of product, the team stands out, does it well, everything is OK. But there are 500 products, one sales force, vanity begins. If this is a product in which developers need to be connected, then they do not reuse their code between teams, chaos begins in all directions. I want to understand: what to do and how to effectively manage it?
(A) There is such a problem. In a nutshell: before we fought with “functional mines” and did not notice how we got into “food mines”, when all life is concentrated in one product and the product is the center of the universe.
There is a classical approach in which everyone says that one should not be product- oriented , but customer-oriented , and, if we go further, then person-centric .
Because the client differs from the person in that the client exists only in order to buy a product from us, and the person lives his own life and somehow we accidentally fall into his field of vision.
As a rule, the result of such a product-oriented approach is that a company has a scattering of products without a single management strategy. There is only one product plan - how to manage it. This is especially true when we all now want to become ecosystems, we want to surround the client with many of our products, partnerships and so on. This is one of the most important issues. There is no monosyllabic solution and answer. But what do we know?
First segmentation. You said well that there is classical segmentation and it does not die in any way.
(R) What should?
(A) Must.
Classic social demo segmentation by the amount of money that the client has to die.
We offer different services, depending on how much money the client has. She is the simplest, because she can easily identify the client.
But segmentation is always needed only in order to isolate from the total mass that piece of customers that, for some reason, is more likely to be bought.
And you focus on them.
Why buy? This is a key question.
It is necessary to identify this reason. We call it a factor influencing behavior. If a person has two million rubles, does he have a greater likelihood that he will issue a product for premium customers or he will go to normal. What drives them? He keeps the account balance and thinks where to throw it? No, he doesn’t think so.
I recently had a strategic session of a bank sanitized by the state, and there the manager asked: "How do we provoke a client to take and transfer money from one bank to us, although we have a story behind us that is not reliable." The manager needs 2 million clients to roar. Answer: the client does not sit and does not think where to transfer these two million. No, he thinks in completely different categories - how to solve his own problem. And 2 million or 50 thousand or 200 million is what he has. He does not identify them as a transition scale in your segmentation.
Therefore, answering the first question “what to do in such situations”: first of all, you need to build a segment, united by a common factor that affects your behavior.
What could it be? For example, in an oil company - gasoline (diesel), at first glance an ordinary commodity. But there they revealed a segment of cargo transportation. Why is trucking a separate segment? Because in the cost of their services, the cost of diesel fuel is 40%. That is, the tariff is 100 rubles, which means 40 rubles will go to diesel fuel. It is very important.
(P) Accordingly, they have a much higher sensitivity to this.
(A) Both sensitivity, attitude, and motive as they choose fuel companies and what they look at are completely different than if you are a bank and you have 10 premium cars to carry vice presidents and you spend 2000 rubles on gasoline. These are different factors of influence.
And then divided. When you select a segment - we call it behavioral, that is, by factors that influence behavior, you begin to look: what kind of life he lives, what problems he faces.
For example, there they were faced with the fact that it is more difficult to look for customers. The price of gas has risen in price, customers are sensitive, they have gone to others. How to look for them? We need new tools, some platforms and so on.
The second problem is how to identify the routes on which to drive in order to drive through the correct gas stations. Yandex navigator did not show it at that moment, did not show prices. Now I started, but then it was not. That is, the problems that lie precisely in this behavioral segment begin to be revealed.
Identified these problems and string products on this scenario. They said that this segment consumes these products. And we manage the entire segment, and not the product separately, to increase the profitability of the entire segment, rather than a single product.
(R) Thus, it turns out that this is essentially CJM, but not limited within the company, looking at the product, but with a focus on the client, what is in his life: where, what products, services and services to insert.
(A) That is, returning to the mines. Ideally, the mine is neither grocery, nor segmented, but scenario. There is a client who, according to a certain criterion, belongs to a group. And the team does not deal with the product, but with the product and service, and so that the billboard with your advertisement is on the way for this client.
Yes, in fact, we again return to the pumped segment management. But what is the problem of social segmentation? That it, firstly, does not determine the fact that you will buy, and secondly, the segments begin to intersect with each other. I have 2 million in my account, but I do not want to use the premium segment, I do not need these your concierges.
(R) At the moment, I have different cards, but from the time when I didn’t have a salary at all and until the time when I got these cards, I almost never used anything, I still don’t use it.
(A) And this is normal behavior!
(R) It turns out that these products did not stimulate me in any way, and I changed 3 segments in the opinion of the bank. It turns out, according to the behavior, I'm generally in some other behavioral segment.
(BUT)
They don’t even know how you behave, what products you could consume, but they think that if you earn, conditionally, 300 thousand rubles, then you definitely need a business room in Domodedovo.
(R) And as I flew only once a year, I continue.
(A) And it turns out, this is also a segmented approach, only at a new level of evolution. And the groceries do not disappear. Everyone thinks "we just created them, what to destroy?" No, they do not disappear.
It's just that they are like clusters of grapes strung on a common scenario.
And it appears here - the customer experience owner , who is no longer responsible for individual products, but for the profit that this entire segment brings.
CX directors are now appearing in companies, but they are far from this function, they are for service. (Why so discuss in the first part )
And for managing behavioral segments - this is not yet.
(R) So, to summarize, we get the following. We walked evolutionarily from income segments, now we have come to the product. And the next thing it would be great to come to, albeit marked “again” is segmentation, but by behavior, and not by social security.
And the second thought - CX-manager - is not one position, but each segment has its own CX, which builds this entire chain.
(A) Everything is true, but we call it CX-Owner, and above them all - CX-Director.
If it’s more convenient for you to watch the video version of the conversation, follow the link and subscribe to the channel.
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