SA-SU0050-030611-A41SEGMENTMANAGEMENTTREND-1e.g.thosethatleaveorreducerelationshipbecauseactivelydissatisfied,oftenbyaspecificevente.g.thosethatleaveorreducerelationshipbecauseactivelydissatisfied,oftenbyaspecificeventinertialmigratorsinertialmigratorsSA-SU0050-030611-A42ESSENTIALTOUNDERSTANDISSUEDRIVERSANDCOSTOFFIXINGSourcesofdissatisfaction•Understandwhatdrivesdissatisfaction•Understandcostoffixing•Usekeybreakpointsnottooverspend•Understandwhatdrivesdissatisfaction•Understandcostoffixing•UsekeybreakpointsnottooverspendStructuraldriversStructuraldriversProblemresolutionProblemresolutionDissatisfactionopportunityDissatisfactionopportunityHigh%Low%•Coverage•Servicelevel•Friendlystaff•Consistencyofservice•QuickresolutionSource:McKinseyproprietaryresearchSA-SU0050-030611-A43deliberativemigratorsdeliberativemigratorse.g.,frequentlyre-evaluatedecisions,reaffirm/switchtochosenbrandbasedonmerits;rationaldecision-makere.g.,frequentlyre-evaluatedecisions,reaffirm/switchtochosenbrandbasedonmerits;rationaldecision-makerSEGMENTMANAGEMENTTREND-2SA-SU0050-030611-A44SEGMENTISMORECOMPLEX,DUETODELIBERATIONONSEVERALDIMENSIONS•Productandperformanceattributes•Value•QualityFunctionalbenefitsFunctionalbenefitsRelationshipbenefitsRelationshipbenefits•Valuebasedonpersonalizedservice•Strongemotionalrelevance•Informationsharingthatcreatesvalueexchange•DifferentiatedloyaltyrewardsProcessbenefitsProcessbenefits•Easeofaccesstoproductinformation•Broadproductselection•Simplified/assisteddecisionmaking•Convenienttransactions•AutomaticproductreplenishmentSA-SU0050-030611-A45SEGMENTINGCUSTOMERSWITHDISTINCTBENEFITPREFERENCESSegmentcharacteristicsPercentageofpopulationProcessandrelationshipProcessandrelationshipFunctionandprocessFunctionandprocessFunctionandrelationshipFunctionandrelationshipFunctiononlyFunctiononlyConsiderbrandrelationshipimportantandhavehighexpectationsforthestandardofcustomerserviceWantproductfeaturesandefficient,effectivecustomerserviceWantgoodvalueandthe...