Segmentation Research
Utility Company Segmentation Study: A large energy utility company, facing the prospect of a deregulated marketplace, sought to understand the loyalty that existed within its customer base. Recognizing that different customers have varying needs and expectations relative to utility companies, a segmentation analysis was performed in which customers were divided into distinct segments based on the similarity of their utility-related needs and values. Segment membership was then correlated with loyalty to see if any need-loyalty association exists. The research identified two unique segments and pointed to several specific strategies that could be developed to enhance loyalty among members of each.