Market Segmentation Helps a Renowned IT Services Provider Target the Most Profitable Customer Segments

January 22, 2018

A recent survey estimated that the five most valuable companies in the world were all technology companies.

Today, the relative growth in tech-savvy consumers is forcing technology companies to consider unconventional and innovative ways to enhance their growth opportunities. The IT services sector, at large, comprises of applications that help the businesses to create, manage, and optimize information. The growth of the IT services sector is marked by the relentless shift in the consumers’ demands and the rising spending on IT products and services. In this technology-driven space, leading organizations are relying on innovations in their product offerings to improve customer satisfaction and increase the overall profitability. Apart from the conventional factors, the growing need to push companies to outsource their IT requirements is also anticipated to spur the growth prospects of the IT services sector. Although the IT services space is witnessing incremental growth, owing to the presence of a considerable number of service providers, several factors may influence the growth of the IT industry. They include:

Cyber threats: Organizations are inundated with data – with the rising volume of data, players in the IT space have become the victims of various security breaches. So, it becomes a mandate for the companies to streamline their efficiency and improve security in their operations. Moreover, with the growing number of attack vectors such as network, data, and end points, organizations are facing the need to stay relevant and up-to-date with the current technologies.

Rising consumer demands: In recent years, consumers have become technologically driven and are not confined to less updated technologies. Prominent IT services providers should ensure that the requirements of the customers are met through customization and other relevant product offerings.

To cater to the consumers’ demands and improve their brand affinity, organizations are utilizing advanced solutions such as market segmentation. Market segmentation is all about identifying and profiling different groups of customers and tailoring specific products to meet the end-user requirements.

The Business Challenge

  • The Client: IT services provider
  • Area of Engagement: Market segmentation

The client, a prominent IT services provider, wanted to understand the buying habits and preferences of the customers and implement a segmentation strategy to tailor products and services for the respective segments. The client also wanted to streamline their marketing effort to differentiate their products and services from their competitors. With the help of Infiniti’s market segmentation strategy, the client further wanted to explore and analyze different characteristics and develop products, services, and marketing strategies to address customers’ specific needs.

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Our Approach

The market segmentation experts at Infiniti carried out extensive research and interviews and discussions with prominent stakeholders in the IT services space. To uncover the characteristics of the market, the segmentation experts at Infiniti also compiled information across various proprietary sources such as paid industry databases, trade shows, and company presentations.

The Solution Benefits and the Business Impact

At a more tactical level, the market segmentation solution offered by Infiniti helped the IT services provider to entirely focus on the needs of the most desirable customers. The client was able to understand the relative strengths and weaknesses of key competitors in the market and develop robust marketing strategies. The solution also sought ways for the client to predict the most profitable customer segments and profile customers based on demographics, behavior, and geography. The client was further able to streamline their product positioning strategy based on the potential opportunities and align products with the target segments.

The Future

The rise in innovations and the recent technological uprising will influence the future of the IT services sector. Moreover, the digital revolution will help the IT services providers to go on par with new expectations and possibilities.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the IT services space.


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