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Any company’s go-to-market strategy revolves around targeting the right customer segments and developing products or services that they value. On an operational level, having a deep understanding of their customer segments helps companies prioritize their resources to the products that matter. Loss of focus is a disadvantage to companies in any industry where there exists heavy competition and where customers demand a clear message on the value they are being offered. However, many companies struggle with understanding which customers they should focus their attention on in looking towards the future. While a historical analysis will show the types of customers they have served in the past, constant changes in the market mean that the segments a company services today may not be the segment that will be profitable tomorrow.
AI will not only help your company predict which segments your customers belong to but also enables you to forecast the revenue each segment will generate over a future period of time. Unlike traditional forecasting methods that are mostly based on static assumptions, AI is able to forecast revenue with greater accuracy by incorporating a wealth of information relevant to simulate the real world’s multi-dimensionality. For example, retailers are able to create more accurate forecasts with less variability by including predictors such as upcoming major holidays, school holidays, day of the week, weather, sports games, and more. By forecasting revenue for each customer segment, companies have the ability to understand which segments will see greater growth than others, and why. AI will inform your sellers about the reasons behind each forecast to give you an understanding of the variables you can control to impact revenue. As with the ability to forecast revenue by products, forecasting by customer segments enables you to put your focus today on investing in the customers that will matter tomorrow.
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AI can help organizations across the board, no matter their industry, with a variety of internal and external challenger - from driving operational efficiency and optimizing expenditures to transforming marketing activities and improving forecasting.