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How would you approach a real customer segmentation project for a retail bank?

projects retail bank
Recent activity on Feb 27, 2019
2 Answers
1.9 k Views
Anonymous A asked on Feb 27, 2019

Hi,

I'm working on my first customer segmentation project for a big retail bank. The bank currently do not have segments for their customers, other than age etc. but nothing defined to drive business value and targeted sales/service.

My final deliverable will be 3 possible options for segments.

As I have never done a customer segmentation piece before, I'm hoping to source some ideas on what approach to take (e.g. what would an issue tree look like, how should I be utilising data, what's the framework here - need-based, past behaviour based and demographic profiles?)

I appreciate any guidance on this.

Thank you!

I want to be notified about updates regarding this question via email

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Francesco
Expert
Content Creator
 replied on Feb 27, 2019
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi Anonymous,

I agree with Vlad that the final goal of the analysis is critical to define a proper segmentation and therefore the first level of a structure. Possible examples of segmentation for a second level of the structure include:

  • Age groups
  • Income level
  • Location
  • Profession
  • Type (individual/company)
  • Current products used
  • Target goal of the customer

Hope this helps,

Francesco

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Vlad
Expert
 replied on Feb 27, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

It's very much a mathematical / research task that depends on objectives, products you are considering, etc. I recommend leveraging the knowledge base of your consulting company (I assume you are working in consulting) to find the relevant approaches.

Best

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