How can agile approaches help you solve customer segmentation problems?

In my experience, I learned the importance of adapting initial hypotheses, much like the agile approach of embracing change. Working with microentrepreneurs, we initially assumed that group loans, usually formed by women, wouldn't include men. However, our assumptions were challenged when we discovered that in certain areas of the country. This led us to adjust our approach, including men in group loans, but only in specific regions. This experience aligns with the agile value of welcoming changing requirements and emphasizes the importance of continuous learning and adaptation. It highlighted the need to consider geographical variables in pilot projects to better understand and meet our diverse clients' needs.

Agile methods aid in customer segmentation by enabling iterative refinement, integrating customer feedback, fostering cross-functional collaboration, adapting to change, prioritizing high-value segments, using data for decisions, ensuring quick time-to-market, and promoting continuous improvement through a Minimum Viable Segmentation approach.

Agile approaches enhance customer segmentation in business analysis by fostering iterative feedback and collaboration. Utilizing AI, such as powered by LinkedIn, allows for data-driven insights, enabling quicker adaptation to evolving customer needs. The iterative nature of agile allows teams to adjust segmentation strategies in real-time, ensuring a more responsive and customer-centric approach.

In my experience, I've learned that it's crucial to include the sales force in the segmentation process. They help validate whether the segmentation aligns with the business. It's essential for multiple stakeholders, from product managers to business specialists and data analysts, to be involved in this process. The outcomes need to be contrasted with field realities, avoiding proposals that only work in theory. The practical perspective of those in direct contact with customers is invaluable in predicting the success of initiatives.

As Agile Manifesto describes, "Individuals and interactions over processes and tools, Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan" Even the Agile principles focus on sustainable development by maintaining a constant pace with the business as well as the development team.

Just like the story of 3 blind mand describing an elephant.. working alone and depending on our own senses could be missleading and even lead to the wrong conclusion. Only through collaboration and rigorious discussion with our 360 stakeholder we can come up with the right picture

It makes sense to add value incrementally as follows - 1. Gives the business opportunity to familiarise with the change gradually 2. Option for reverting the change easily if not suited well 3. Can consider the budget and funding constrains easily 4. Helps in build and test and deploy very easily

In my opinion it's more of "incremental delivery = value" The main dilemma that a lot of people face is the choice to deliver the completed feature or the amount of work completed after the timebox has expired. In most cases PMs or the PO think that we should compound the work of two sprints and deliver a major release but that in turn has it's downside cause you miss out on a lot of crucial feedback which results in a lot of rework and ofcourse heartache for the team. So, the timebox is a major contributor to actually making a release valuable. By providing small batches incrementally and continuously improving that release after feedback will result in a lot more value and save the time and effort of everyone involved.

The way I think of this, particularly in an agile context, is by assessing the value of the objectives targeted relative to their probability of success versus the incremental costs, on an objective value basis. It might seem obvious, but from my experience, this kind of objective evaluation is not as common as it should be in agile project management. Teams often overlook the importance of regularly revisiting and objectively assessing each task's potential value against its likelihood of success and incremental associated costs. Incorporating this approach can lead to more efficient use of resources and better alignment with project goals.

In line with the agile value of incremental value delivery, we started by segmenting the target population for our product, gradually enhancing its value. During our digital account opening project for the microfinance sector, we initially launched a version for dependent segment clients, who primarily use the account for savings. Next, we targeted the product to clients needing to disburse their loans into the accounts. Finally, we expanded to clients interested in transactions, which differ from saving needs. This phased approach allowed us to adjust and refine the product at each stage, resulting in a fully functional product tailored to the diverse needs of our clients.

I completely agree with the spirit of agility, which lies in the ability to adapt by adding or removing elements as needed. If we find that the product already meets customer needs in its current state, we might consider keeping it as is. However, this decision can only be made by being in direct contact with the customer. Therefore, conducting constant surveys after launching the first Minimum Viable Product (MVP) is crucial. This practice of continuous inspection and adaptation allows us to ensure that the product not only meets initial expectations but also evolves with the changing needs of the customers.

Below are the ways, Agile methodologies can help in customer segmentation problems. 1. Iterative Development Refinement of customer segmentation strategies based on evolving requirements. 2. Customer Involvement Customer collaboration throughout the development process. 3. Prioritization Prioritize segments based on their strategic importance 4. Data-Driven Decision-Making Analyzing customer feedback & performance metrics to refine & optimize segmentation strategies. 5. Frequent Deliverables To implement changes to segmentation strategies incrementally. 6. Continuous Improvement Assess the effectiveness of the strategies and make adjustments as needed. 7. Quick Time-to-Market To implement changes to customer segmentation quickly.

This article is quite ambiguous. The topic suggests solving customer segmentation using agile processes, but the content appears to be a blend of agile development practices and how a solution can be iteratively developed to meet evolving customer needs. While both perspectives are undoubtedly valid, the article fails to adequately address how customer segmentation can be enhanced by employing flexible, iterative, hypothesis-driven customer-centric processes.

At the heart of agile approaches lies the concept of continuous improvement, a dynamic process that empowers businesses to effectively address customer segmentation challenges through iterative refinement. Agile methodologies embrace feedback as a driving force, fostering ongoing learning and adaptation to ensure that segmentation strategies remain relevant and effective in an ever-evolving market landscape.

I agree that we need to make the segmentation process more concrete, considering it varies from business to business. Beyond just following an agile process, which clearly facilitates changes, I believe the spirit of the article could be more about how to tailor segmentation to the specific needs of each business. Agility allows us to be flexible, but we also need to be precise in understanding and applying segmentation in a way that truly reflects the unique characteristics and needs of each customer segment. This implies a detailed and personalized approach, going beyond mere adaptability, focusing on relevance and effectiveness specific to each type of business.