The Challenges of Current Segmentation Models

This chapter discusses current segmentation practices in relation to the criteria of good segmentation. Firms use a zillion different segmentation models. Before introducing CUBEical segmentation it is worth taking a look at some commonly used segmentation models and analysing how well they fit these criteria in order to fully understand the need for a new segmentation framework. One of the segmentations is demo-firmo-graphic segmentation that unfortunately opens the door for the registration trap – the uncritical use of data already registered and available inside the firm. Another one is campaign segmentation that typically sticks to demo-firmo-graphic customer data but instead of segmenting customers they are kept unsegmented in a database from which customers are picked and grouped on an ad hoc basis when running a specific marketing campaign.