A “segment of one” strategy won’t work unless it is backed by a superior customer proposition, one that’s built on deep customer understanding, superior products and services and effective communication. But, hang on. How can banks – all offering near identical
commodities – create a product that stands out?
A 4D model of product innovation says that a superior product is a combination of design, development, delivery and distribution. In short, it must have the right features, be part of an attractive bundle and be available on all channels. The “segment of
one” approach goes a step further to say that a product must also be customer-specific, to the extent that it not only takes each customer’s preferences, but also their channel interaction, prior feedback and relationship value into account.
Is it even possible – let alone viable – to have a product for every person?
Thankfully, technology offers a way out by enabling banks to quickly tweak a single product into multiple variants and to price them based on a client’s overall relationship, to match specific needs. Or create a very specific product on the fly. Let me give
you an example.
An executive at a bank located in the country hosting the FIFA World Cup overheard a customer complain about how tough it was to get a ticket to the games. That triggered the idea of a World Cup package – complete with air ticket, hotel accommodation, match
ticket, foreign exchange and travel insurance.
Could we have imagined this in the days of product centricity, when one size was supposed to fit all?