nmitham's Channel

THE VALUE SECTOR: The ability to identify and segment customer databases by current and future profitability is vital for companies wishing to yield maximum value from their clients. I use the Value Sector model typically for consumer and B2B clients who need to better understand the equity within their databases. As a marketing planning tool, the Value Sector model not only helps to segment customers into groups but also to provide accurate steers in terms of deciding where to focus customer marketing efforts.

The model looks at the current value (cv) and future value (fv) of each customer and assesses them on the basis of them having a low or high (relatively) score.