Customer Segmentations and Increase in Product Penetration

JUHI
MBA- Banking Technology
Pondicherry University
Abstract
Customer segmentation helps banks get to know their customers on a more
granular level. Segmentation reveals specific intelligence that could otherwise be
obscured by the sheer volume of data. These insights, in turn, inform messaging
strategies for marketing and customer service strategies. Competitiveness in the
banking industry has made the task of raising loanable funds more difficult as
customer needs have become more complex. This project is the up gradation of
normal demographical segmentation model. Traditionally the segmentation is
done on the basis of the demography, customer value, behaviour, if with it we
add the attitude(digital , traditional) of the customer also we can able to know
more about our customer and able to develop, upgrade and reach the customer
more effectively. It will help us in better understanding of customer and help to
sale more products to them. Data were collected from the questionnaire and
analyzed. Although, there are more advanced segmentation techniques can be
used for demographic segmentation to find insight of the product and services
already offered to existing customers. It can also help banks better understand the
customer lifecycle and predict customer behaviour. The findings were further
interpreted to refine the products and service development and also improve the
marketing promotion.