In the age of payment giants, segmentation matters

Giants rule the earth. Mega-brands dominate payments(and much else) and there is a rush towards size. We use the term “scale” with abandon. What does everyone else do? There are four options- get bought, fold up, make a tech breakthrough or focus. The last option is something that deserves attention(and is related to the third option, too). Focus means finding a corner where you can hold your own. It does not matter if you are tiny-in that corner you are the king, the best your customers can get. You segment, target and position. This is what keeps autonomous innovation ticking

Segmenting should be relatively easier now than it used to be. Data footprints are available. Tools are widespread. For payment brands, it has to begin with the very rich use context data captured during transactions. Married to clusters of opt-in profiles, it is possible to build multivariate segments. This is where clarity is required- thus, not only the right maths graduate and coder in your team; but also the right person to strategically visualise and draw out the map on a piece of paper. Algorithms are about relationships and outcomes-business is about relationships and outcomes; in our tech-centric world, we should never forget this. One might, of course, nitpick on the logic of the segments or the elegance of the formulae. Nonetheless, whether it is well-designed or ramshackle, a picture emerges.

Product managers love pictures. Designers love pictures. So do sales people. The target takes shape. Motivation levels rise. This is of course relatively convenient for B2C companies. The challenge in front of B2B payment companies is to evangelize the outcomes of their product stacks applied to their chosen segments as successful potential brand personas. In other words, a story well told on top of a complex endeavour. That is something a client may be able to relate and act on. In that case, segmentation leads to success. The rest-financially, organizationally, etc- follows.