Segment Profitability and Targeting Decision
Choose which segments to pursue.
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Help me decide which customer segments to pursue. Segments and their data (size, revenue, margin, cost to acquire, cost to serve, churn, growth): [SEGMENT_DATA]. Capacity and strategic goals: [CAPACITY_AND_GOALS]. Competitors' strength in each segment: [COMPETITION]. Use this decision tree and show numbers: 1. For each segment, calculate contribution per customer: revenue minus cost of goods, cost to serve, and support, over the average customer lifetime; then divide by the cost to acquire to get a payback ratio. Show the arithmetic. 2. Is the segment large enough to matter? Estimate the number of reachable customers and potential revenue; mark estimates. 3. Is the segment reachable with channels I have? 4. Can I win? Compare my strengths against competitors for the needs of that segment. 5. Is the segment stable or changing? 6. Does serving it distract from the core? Classify each segment as invest, maintain, fix, or exit, with the reason. Output a comparison table, a 2-by-2 of attractiveness versus ability to win drawn in text, a recommended focus of one or two segments, a 90-day plan, and the assumptions that would change the decision, along with the experiments to test them (for example a small campaign aimed at one segment).
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