The transportation services sector is regarded as the backbone of the economy, as it provides a cost-effective flow of goods on which the other commercial industries depend. It is an interplay of technology, infrastructure, and new types of services providers who define the ability of this sector in helping its customers by offering efficient services and reducing costs. The transportation services industry like any other industry is under pressure to improve its cost efficiency. Hence, leading players are looking at implementing various measures that would help them reduce the costs incurred. Moreover, since the transportation sector has not been able to keep pace with rising customer demands and preferences, it is proving to be a drag on the economy. Significant improvements in the industry are therefore required to support the continued economic growth and cut down on major losses.
Some of the factors that may curtail the growth of the transportation services industry include:
- Tightened Budgets: Companies operating in various sectors tend to look at transportation as one of the major functional areas that would help them save on costs. Such decisions benefit firms by cutting down costs to improve profitability.
- Shrinking capacity: The economy, the driver shortage, government regulations, and other factors are shrinking the capacity of the companies operating in the transportation services industry.
- Economy: Changing economic trends affect the manufacturing and distribution processes which in turn affect the demand for transportation services from various end-user industrial segments.
- Developments in technology: Rapid technological advancements have helped companies in streamlining and improving the productivity of their operations.
Leading players in the transportation services industry are looking at leveraging Infiniti’s market segmentation solutions to gain actionable insights on the current needs and priorities of the end-users. This helps them in efficiently allocating resources to meet their business requirements. Market segmentation solutions also assist clients in dividing the market into various segments based on customer needs and preferences. Moreover, it helps them devise targeted marketing strategies to pitch their products and services.
The Business Challenge:
- The client- A well-known transportation services provider
The client, a prominent transportation services provider, wanted to leverage market segmentation solutions to create subsets of the market based on various factors which included priorities, demographics, and other psychographic criteria used to better understand the target audience. The client wanted to make use of market segmentation solutions to offer personalized services to different customer segments. The transportation services provider also wanted to maximize profitability by focusing their efforts and resources on developing strategies to suit the target market segments.
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To identify the potential targets and implement a robust segmentation strategy, the market segmentation experts at Infiniti also carried out extensive research comprising interviews and discussions with prominent stakeholders in the transportation services industry. The experts also compiled information from a wide array of reliable sources such as paid industry databases, industry forums, and company presentations.
The Solution Benefits and the Business Impact:
Infiniti’s market segmentation solutions helped the transportation services provider gain actionable insights to efficiently track and segment its customers. The solutions offered also assisted the client in identifying and marketing their products and services to better serve its customers. Moreover, the solution also helped the client re-define their advertising and media campaigns to enhance the return on investment. The market segmentation solution also offered insights on the ways to devise potential branding strategies to keep themselves updated on the current market trends.
The growth of the transportation services industry will be characterized by the increase in digitization and the advent of smart technologies. This is because digitizing transportation services will help transportation service providers in improving their efficiency, create better experiences for its customers, and ultimately increase the profitability of the well-integrated transport infrastructure.
Looking to gain an in-depth understanding of the transportation industry? Request more info from our experts.