Enterprise segmentation is ripe for transformation

Enterprise segmentation is ripe for transformation

Enterprise segmentation is ripe for transformation

0 comments 📅14 July 2016, 02:45

Enterprise segmentation is ripe for transformation

By Mike Sapien, Principal Analyst, Enterprise Practice

As traditional wireline revenues continue to decline and new services such as mobility flatten it is even more important to find new ways to segment enterprise customers.

Most telcos put a great deal of effort into understanding consumer trends and building sophisticated marketing plans for the consumer market, and they need to make a similar investment in the enterprise space.

New segmentation could drive transformation channel programs, prompt a redesign of direct sales engagement, and help telcos develop predictive models for both existing and new services. New factors such as buying habits, business models, and Internet dependency would play major roles in any new approach, and telcos could use BI tools and analytics to transform their enterprise customer segmentation, as well as their sales and customer support.

Segmentation must include more factors and be updated regularly

Annual revenues, line size, and number of employees have been used for segmentation for the past 30 years, with little change or updating. Most telcos’ sales forces have been organised into the general business, SMB, mid-market, and enterprise segments for just as long.

However, the many changes in business models, communications, and technology demand new segmentation and a re-evaluation of how to maintain and improve telcos’ enterprise services. Business customer segmentation must include a wider range of elements and factors, as well as a process to more regularly update the customer’s status and individual support.

Any new model of segmentation must be more dynamic

Any new segmentation model must have some process to continually update and track individual customer behaviour, as well as wider trends.

Updating segmentation annually is not sufficient to keep up to date with customers’ requirements for communications, or their need for new, more advanced services. For example, many small, Internet-based companies with a high volume of customer portal transactions and a small number of mobile employees will never show much demand, yet in the future they may be ideal candidates for new cloud or SaaS services.

If telcos do not segment and target these customers, their competitors will, which is a serious issue for telcos that have previously relied exclusively on direct sales channels.

Many competitive providers use secondary research, new funding notices, M&A announcements, and bankruptcy filings to find new customers. Telcos could even use major revenue swings to flag accounts that may need more attention.

Enterprise segmentation can promote BI and analytics

During 2013 telcos will announce advanced enterprise services in areas such as unified communications, cloud-based SaaS, mobility, social media, Big Data, BI, and analytics. They should use some of these tools to transform their own enterprise segmentation, and make related improvements to their account support and customer service.

Telcos’ enterprise customer segmentation projects could make excellent case studies, and become a way for them to demonstrate how to use BI and analytics effectively. It would help customers to see telcos using their own new services to transform their enterprise segmentation and the related enterprise sales organisation, creating a new dynamic segmentation model and improving customer service.

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