Customer Segment analysis for MyCard
There’s an old saying ‘Customer is King’, however, it should be followed by ‘But Shareholder is Emperor’. For any profit-seeking organization, the purpose of maximizing customer values and satisfactions is to deliver optimal shareholder’s value.
Therefore, the deep understanding and successful targeting of customer segments are the critical step to ensure realization of business strategies and sustainable financial growth.
Before we conduct any customer segment analysis, we should ask ourselves:
• What are the identifiable selected groups of potential customers who we want to market to?
• What is the potential profitability that they can bring to the business or product?
• Are the customer segmentations growing?
Customer services and satisfactions are rooted in meeting customers’ needs, where the customer segmentation analysis should be focused.
Who are the potential customers of MyCard, as rightly pointed out by Mr. Knudsen, they should be:
1) People who generally don't have an established credit history.
2) People who have had poor credit rating in the past.
3) People who planned to use MyCard for making money transfer.
4) Any other people who would use MyCard for miscellaneous uses.
1) People who generally don't have an established credit history.
People in this situation most often included recent immigrants and students. According to Canada's Immigration Program (October 2004) Canada had the highest per capita immigration rate in the world, Since 2001, immigration had ranged between 221,352 and 262,236 immigrants per annum. In 2004 alone, 235,824 individuals immigrated to Canada, the trend was expected to continue. Most immigrants came from South Asia and China and were attracted to fill labour market needs and contribute economically to Canada. They were financially independent and affordable the prepayment required by MyCard. As new immigrants, they...