Once you have a clear and objective understanding of preferences and willingness to pay, you can make better decisions about what products and services to offer and how to bundle them."
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"Geography and purchase volume may have once been a useful proxy for customers’ preferences and willingness to pay, but all too often we have seen this link broke long ago. Such a segmentation technique may help managers characterize the current state of their markets, but it provides them with no insights into what their markets could or should look like. It does not give them insights they can act on quickly to make more money. In other words, it does not help them decide which customers they shouldn’t serve as intensively and which customers will pay more for certain products and services that others don’t want as badly.
If you segment your market according to customers’ preferences and willingness to pay rather than solely on geography and volume, you will become aware of how you can adapt your offering of products and services to match each segment’s preferences and capture that profit. This new focus will allow you to deploy your sales teams and marketing dollars more effectively. In some cases, that could mean offering services at a different level of intensity or adding additional product and services variations. In other cases, it could mean restricting your focus to a select group of segments, then shrinking your product and service portfolio by eliminating what you no longer need."
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