CUSTOMER SEGMENTATION -A CASE OF INCREASE IN CUSTOMER SATISFACTION LEVELS WITH SEGMENT-SPECIFIC CUSTOMER SERVICE STRATEGIES

Segmentation plays a pivotal role in deriving customer service strategies which in turn enhances the customer satisfaction levels. While Data mining techniques help the organizations in understanding the behavioural, demographic patterns, Customer relationship management (CRM) strategies help in acquiring new customers and retaining existing profitable customer. CRM further helps in building customer loyalty thereby helping upselling and cross selling of the products -which are useful for expanding the markets and increasing the profit margins of the entities. In our current study and research paper, we have touched upon these aspects for a small retail shop as a case study and suggested a simple model of segmentation and relevant service strategies. We have also studied the effect of segment specific strategies to know if there is an enhancement of customer satisfaction levels and results shared. We conclude saying that based on the study, there is a clear enhancement of over all customer satisfaction and the relevant strategies help the retail outlet for expanding the scope of business.