Case study
How Tommy Hilﬁger capitalizes
on its most proﬁtable customers
Authors
Tommy Hilﬁger case
Angelo Gelsumino is a partner in the Advisory Practice,
Ernst & Young LLP, Netherlands and is the EMEIA
customer lead
Bob van der Beek is a senior manager in the Advisory
Practice, Ernst & Young LLP, Netherlands
Kasia Blicharz is a manager in the Advisory Practice,
Ernst & Young LLP, Netherlands
Executive summary
I
n today’s competitive global fashion
market in which Tommy Hilﬁger
operates, companies struggle
with building sustainable and
proﬁtable customer relationships.
In this environment, segmentation
becomes the key to effective customer
proﬁtability management. It helps
to optimize investments in product
development, channel management and
marketing communications. A fact-based
segmentation establishes a method to
select the most proﬁtable customers and
with their underlying proﬁles helps to build
targeted marketing strategies around
them. This segmentation method enabled
Tommy Hilﬁger to stimulate the change
of its mindset from traditional productcentric thinking to a more customer-centric
thinking. As a result, Tommy Hilﬁger
will optimize the allocation of the total
marketing spend, launch tailored CRM
activities and effectively increase its sales
margins and revenue.
57
Today’s global fashion market: redeﬁning
the balance between efﬁciency and
effectiveness - building brand loyalty as
the next competitive battleground
The high-quality global fashion market
in which Tommy Hilﬁger operates is
characterized by strong competition and a
number of industry trends such as:
• Retailer consolidation and growth of
retailers’ private label brands
• Apparel price deﬂation and ﬂat growth
• Capricious customers and reduced timeto-market cycles
Although customers shop more frequently
and buy more clothes than before, they
spend overall less of their income on
clothing than in the past. Factory outlet
sales and online sales are increasing
rapidly, with shoppers looking for
maximum value for money, chasing good
deals on high-end brands. Consumers are
also buying closer to the time they will
wear the clothing, requiring a reduction in
time-to-market cycles (from design board
to store racks).
The ability to quickly respond to
customers’ ever changing demands
with effective, low-cost sourcing and
supply chain management is key to both
gaining and maintaining a competitive
advantage. Traditionally companies need
to eliminate inefﬁciencies to reduce cycle
times and cut costs. At the same time,
as proﬁtability becomes more difﬁcult
to achieve, optimizing the effectiveness
of their operation becomes critical. This
pressure of becoming more effective
requires a rigorous focus on building
and retaining a strong and differentiated
brand1 and managing the relationship
with the customer. Failure to identify
consumer trends, meet customers’ needs
and build a closer relationship with them
has an increasing impact on business
performance. Therefore, building brand
loyalty2 is becoming the next competitive
battleground.
1
The “soul of the brand” (image, associated
lifestyle and types of styles and products offered)
is one of the company’s main assets and should
be managed carefully to build brand loyalty and
successfully differentiate the brand from its
competitors.
2
Loyalty in this context is deﬁned as a
Building sustainable
and proﬁtable customer
relationships
Tommy Hilﬁger is a recognized premium
fashion brand, offering customers a range
of high-quality product lines including
men’s, women’s and children’s casual
apparel, denim, accessories and a range of
licensed products such as fragrances.
Tommy Hilﬁger uses a variety of direct and
indirect distribution channels. Its business
model is based on indirect selling through
combination of both attitudinal and behavioral
loyalty. Attitudinal loyalty is measured by two
components. The ﬁrst is the extent to which
customers feel a personal bond with the brand and
a connection to what the brand stands for: “brand
proximity.” The second component is “customer
preference,” the extent to which customers
indicate a particular brand as being one of their
favorites. Behavioral loyalty is also measured by
two components: the level of actual customer
recommendation (positive word-of-mouth over
the last 12 months) and repeat purchase over
the years.
Tommy Hilﬁger case
wholesale3 and direct selling through retail4
and e-commerce.5
management (CRM) strategy, including a
loyalty program.
In order to achieve sustainable and
proﬁtable growth, Tommy Hilﬁger is aiming
to achieve:
The project team was initially requested to
help validate this hypothesis and provide
the guiding principles for launching
a CRM strategy. When we started to
develop a solution for Tommy Hilﬁger, we
took a broader view and embedded the
requirements of the CRM strategy in a
wider context, in which the fundamental
question was, “How does a company
build sustainable and proﬁtable customer
relationships?”
• An improved sales margin
• Strengthened brand positioning to
increase sales revenue
Furthermore, Tommy Hilﬁger’s marketing
division’s hypothesis is that by focusing
on brand loyalty and building a direct
relationship with customers, Tommy
Hilﬁger can make a structural improvement
Managing customer
proﬁtability through strategic
market segmentation
The segmentation of consumers in Tommy
Hilﬁger’s target market6 is the cornerstone
of customer proﬁtability management.
Effective segmentation establishes a
common ground for a fact-based selection
of customer groups (segments) and
helps to optimize investments in product
development, channel management and
marketing communication.
to its margins and increase revenues.
This hypothesis has led Tommy Hilﬁger
to outline a customer relationship
3
Indirect selling; clients include business-toconsumer clients such as leading department
stores and chain stores, as well as business-tobusiness clients who act as resellers, e.g., selling
to multibrand stores or online stores.
4
Direct selling to customers through single brand
stores, both owned and operated as well as
franchisees.
5
Direct selling to customers through online single
brand stores, owned and operated.
Segmentation is a strategic process of subdividing the market (including customers)
into relevant groups that share similar
characteristics and are also signiﬁcantly
different from other groups.
Strategic market segmentation
demonstrates how one can capitalize
on deep customer insight to re-align the
organization around its most proﬁtable
customers. Identifying customers with the
highest present and potential value and
6
The project team has helped Tommy Hilﬁger to
deﬁne its target market, based on speciﬁc criteria
taking into account customers’ “fashion literacy”
and premium brand-buying behaviour.
building operating models around them is
the key to driving growth and proﬁtable
revenues.
Most organizations only have a limited
and somewhat fragmented view of their
customers using basic demographics and
buying behavior. However, in order to
build sustainable and proﬁtable customer
relationships, an in-depth understanding
of the underlying motives and values
that drive customer behavior is needed.
Capturing these driving forces of customer
proﬁtability requires a multidimensional
approach to the market and segments.
We developed a four-dimensional market
segmentation framework for Tommy
Hilﬁger that combines the following
dimensions:
• Buying behavior and customer
economics
• Customer needs and attitudes
• Customer experience and brand
relationship
• Social demographics and lifestyle
We built our market segmentation
framework conducting quantitative
primary market research across Tommy
Hilﬁger’s key markets in Europe.7
Statistical analysis of this research resulted
in the identiﬁcation of seven European
market segments, each of them with a
distinct proﬁle in terms of the four main
dimensions listed above. The emerged
segments differed in size, both in number
of consumers and their respective share
of the market in terms of overall revenue.
Tommy Hilﬁger is present in each of these
7
The market research comprises nearly 6,000
consumers in Belgium, Germany, Italy, Spain and
the United Kingdom.
59
market segments, its presence varying
in terms of the number of consumers
who buy the brand and the share of each
segment in total Tommy Hilﬁger sales
revenue.
Although the model was constructed
on a European scale, it accommodated
potential differences between countries.
These differences appeared to be minimal,
making the model both actionable on
country level and scalable to additional
countries and regions in a later phase.
For each segment, we provided Tommy
Hilﬁger with an in-depth proﬁle booklet,
containing a quantitative description
of the segments. Both through these
booklets and workshops involving
representatives from several departments
and key decision-makers, the segments
were brought to life. We highlighted their
key drivers and personality traits, and
analyzed in detail their buying behavior and
customer economics, customer needs and
attitudes, customer experience and brand
relationship, and socio-demographics and
lifestyle.
The key beneﬁts of this strategic market
segmentation program delivered are
twofold:
1. A common basis in facts for the
selection of the most proﬁtable
customer segments
2. The ability to optimize product
management, channel management
and communication
A common factual basis
for the selection of most
proﬁtable market segments
for the brand, ideally having the brand as
the most frequently bought fashion brand
on which they spend most of their clothing
budget.
By identifying the unique characteristics of
each segment, we helped Tommy Hilﬁger
to understand the segment differences and
potential ways to address the segments’
respective needs. Building on this, we
helped to quantify the business rationale
for focusing on a few key segments and
we helped to develop a targeted marketing
strategy around these “primary segments.”
In order to quantify the brand position,
we constructed a Tommy Hilﬁger brand
pyramid. This brand pyramid (see Figure
1) represents the ﬁve main stages
customers go through:
The primary segments were based on three
main criteria:
A. Conversion ratio — from knowing the
brand to recurring buying
B. Average annual customer spending in
relation to relative share in total sales
revenue
C. Brand ﬁt
A. Conversion ratio — from knowing the
brand to recurring buying
For a fashion brand like Tommy Hilﬁger,
the key challenge is to continually strive to
improve the conversion rates in its target
market from simply knowing the brand to
actually buying the brand on a recurring
basis. The aim is to create a loyal base of
customers who have a strong preference
• Knowing the brand (brand awareness)
• Feeling a personal bond with the brand
and a connection to what the brand
stands for (brand proximity)
• Deliberately visiting a store to buy the
brand (brand purchase intention)
• Buying the brand for the ﬁrst time
(buyers)
• Buying the brand year after year
(recurring buyers)
By building a brand pyramid for each
market segment, we found signiﬁcant
differences in the conversion ratios. Our
analysis also revealed segment differences
with respect to the leakage8 that occurs
when moving up in the brand pyramid from
one stage to another. We looked at those
segments with the highest conversion
ratios to see which of them qualiﬁed as a
primary segment.
8
Leakage refers to the loss of customers in each
stage of the brand pyramid.
Tommy Hilﬁger case
Figure 1. Brand pyramid for Tommy Hilﬁger — conversion from
brand awareness to recurring buyers
Recurring
buyers
The segmentation
of consumers in
Tommy Hilﬁger’s
target market is
the cornerstone
of customer
proﬁtability
management
Buyers
Brand purchase
intention
Brand proximity
Brand awareness
Conversion ratio =
Recurring buyers %
__________________
Brand awareness %
Source: Authors’ research
61
B. Average annual customer spend in
relation to relative share of total sales
revenue
The average annual sales revenue per
customer differed signiﬁcantly between
segments. Differences were also found in
the segments’ share in Tommy Hilﬁger’s
total sales revenue. The combination of
these two elements and the differences
in conversion ratios provided further
direction for segment selection (see Figure
2). In order to indentify primary segment
we looked at those with the highest scores
for all three elements.
C. Brand ﬁt
By conducting both a quantitative and
qualitative assessment of “brand ﬁt,” we
evaluated the extent to which the Tommy
Figure 2. Focusing on key segments is critical to achieving long-term growth
Index of conversion ratio (brand pyramid) and average annual customer spend
Size of bubble represents share
of segment in total sales revenue
of Tommy Hilﬁger
150
Segment 3, 25%
Highest scoring segments 3, 4
and 7 account for 53% of sales
revenue (while representing
42% of total consumer base of
Tommy Hilﬁger)
Index of conversion ratio
(from awareness to recurring buyers)
Segment 4, 12%
Segment 7, 16%
Segment 1, 17%
100
Segment 5, 13%
Segment 6, 8%
Segment 2, 9%
Index 100 based on total of
all Tommy Hilﬁger customers
50
50
100
Index of average annual customer spending on Tommy Hilﬁger
Source: Authors’ research
150
Tommy Hilﬁger case
Hilﬁger brand personality and its relative
position toward direct competitors’
brands9 ﬁt with the unique characteristics
and growth potential of a particular
segment.
Taking into considerations the ﬁndings
from our four-dimensional segmentation
framework, we carefully mapped the
Tommy Hilﬁger brand personality with
the characteristics of each of the seven
segments. In order to ﬁnd the segments
that qualiﬁed as primary segments, we
looked at the segments that had the
strongest ﬁt with the Tommy Hilﬁger
brand.
Our evaluation of the seven segments on
these three main criteria has led Tommy
Hilﬁger’s global marketing management
to select three primary segments (3, 4
and 7).
The ability to optimize
product management,
channel management and
communication
By focusing on these three primary
segments, Tommy Hilﬁger was able to
use the insights gained on each segment’s
distinct proﬁle to optimize the following:
• Product management — which
product ranges to offer to the primary
segments?
9
Index of conversion ratios of Tommy Hilﬁger
versus competitor brands shows a relative strong
position towards both Direct Competitors and
High-end Competitors; conversion ratios of both
sets of brands are far below those of Tommy
Hilﬁger for six out of seven segments.
• Channel management — which sales
channels to use for targeting and
servicing these segments
• Marketing communication — which
media and messages to use to reach
these segments
A. Product management: transforming
from product-centric to consumercentric thinking
The ﬁndings from the segmentation
program have stimulated a change of
mindset from traditional product-centric
thinking to more customer-centric
thinking. Tommy Hilﬁger is now capable of
supplementing market segmentation as the
guiding principle for future product design.
This involves differentiating product
categories and designing collections
attuned to speciﬁc segments. It also relates
to optimizing the allocation of product
categories and product lines across
channels to optimize the reach of primary
segments (offering access to the right mix
of products through the right channels).
One of the areas we started to explore
together with Tommy Hilﬁger was the
business case for a more segmented
diversiﬁcation and expansion of the
existing product range. In this respect we
have carefully evaluated each “primary
segment” in terms of its attitude towards
fashion, its product categories bought, its
reasons for buying and its sales channels
usage.
By working with Tommy Hilﬁger’s global
marketing team, we helped to identify
opportunities for attracting more
customers from the primary segments
in the target market; thereby aiming to
increase the share of these segments in
the customer base and the overall Tommy
Hilﬁger sales revenue.
B. Channel strategy: steering toward
higher margin sales channels
Sales margin and revenue improvements
can be achieved by steering the primary
segments to the direct channel.
The differences between the segments
with respect to direct channel purchasing
habits (Tommy Hilﬁger owned and
operated stores, both ofﬂine and online)
are most signiﬁcant when it comes to
online shopping in Tommy Hilﬁger’s web
shop (see Figure 3). A closer examination
of segment 3, for example, shows the
future growth potential that would arise
if customers in this segment were to
migrate (part of) their spend on Tommy
Hilﬁger from indirect to direct (Tommy
Hilﬁger owned and operated) channels,
in particular, the web shop. The potential
margin optimization from moving these
customers from relatively low margin
indirect channels to higher margin direct
channels is very large, since this segment
accounts for 25% of total sales revenue,
making it Tommy Hilﬁger’s largest
segment.
In order to achieve this identiﬁed channel
migration potential, Tommy Hilﬁger
needs to use its in-depth insights into the
distinctive drivers and characteristics of
the segment. The segmentation provides
63
Figure 3. Improving margin through channel optimization for ‘primary segment’ 3
Index of buying at branded Tommy Hilﬁger shops – online and ofﬂine
Size of bubble represents share
of segment in total sales revenue
of Tommy Hilﬁger
200%
Segment 7, 16%
Index of buying online via branded
Tommy Hilﬁger webshop
150%
Segment 4, 12%
Segment 1, 17%
Potential of margin
optimization of moving
these customers from
relatively lower margin
indirect channels to higher
margin direct channels
100%
Segment 3, 25%
Segment 5, 13%
50%
Segment 6, 8%
Segment 2, 9%
Index 100 based on total of
all Tommy Hilﬁger customers
0%
50%
100%
Index of buying ofﬂine via branded Tommy Hilﬁger high street shop
Source: Authors’ research
Tommy Hilﬁger with the necessary
information on which to base a CRM
strategy that effectively addresses the
needs of the primary segments. For
example, the recently rolled-out Tommy
Hilﬁger loyalty program is designed to send
customers to the direct channel by means
of targeted initiatives such as personal
sales and service propositions.
C. Communication: increasing customer
life-time value by shifting focus to
segmention-based communication
On average, 35% of Tommy Hilﬁger’s
customers have been buying the brand
already for more than ﬁve years and this
is consistent across segments (variation
The shift from a generic marketing approach
between 28% and 41%).10 As Figure 4
to highly segmented and more personalized
illustrates, there is a strong link between
communication is expected to help optimize
behavioral/attitudinal loyalty components
marketing spend via increased conversion
(actual consumer recommendation/brand
ratios and sales revenue.
proximity) and consumer spending.
Over the years, Tommy Hilﬁger has built
a strong brand and a loyal customer base.
10 These ﬁgures are not presented graphically in this
article.
Tommy Hilﬁger case
Figure 4. Establishing a strong brand relationship is reﬂected in higher customer spend
Index of customer recommendation, brand proximity and average annual customer spend
Size of bubble represents index
of average annual customer
spending on Tommy Hilﬁger
150
Index of actual customer recommendation
Segment 7, 136
Segment 4, 141
Segment 3, 114
100
Segment 1, 98
Segment 5, 91
Segment 6, 61
Segment 2, 71
Index 100 based on total of
all Tommy Hilﬁger customers
50
80
100
120
Index of brand proximity
Source: Authors’ research
The deployment of segmentation across its
commercial operation enables Tommy Hilﬁger to
optimize its allocation of total marketing spend
and increase average revenue per customer
65
From a segmentation perspective, one
can argue that the primary segments in
the target market may not be effectively
reached by a “one size ﬁts all” above-theline (ATL)11 marketing communication
approach. In general, across industries,
the communication approach to customers
has shifted, with the emphasis being more
toward below-the-line (BTL) initiatives
to optimize the return on marketing
budget spent. Companies are increasingly
focusing their energy on winning smaller
but more strategically signiﬁcant BTL
battles than ATL wars with well-funded
competition.12 The same is true for Tommy
Hilﬁger, for which segmention-based BTL
communication could potentially be more
efﬁcient and effective to boost the
11 ATL is a type of advertising through media such as
television, cinema, radio, print, web banners and
web search engines to promote brands. This type
of communication is conventional in nature and
is considered impersonal to customers. It differs
from BTL advertising, which uses unconventional
brand-building strategies, such as direct mail,
email and printed media. It is much more effective
when the target group is very large and difﬁcult
to deﬁne and it is efﬁcient and cost-effective for
targeting a speciﬁc group. While ATL promotions
are designed for a mass audience, BTL promotions
are targeted at individuals according to their
needs or preferences. ATL promotions are usually
targeted more at establishing brand identity,
whereas BTL is usually aimed at generating sales.
12 Winterberry Group Report Quantiﬁes Fundamental
Marketing Shift as Spending Moves Below-theLine//PR Newswire, 23 January, 2006.
customer lifetime value. The fact that
Tommy Hilﬁger already has a stable and
loyal customer base provides a strong basis
for a CRM program with segmention-based
BTL communication.
Figure 5 shows that, for Tommy Hilﬁger,
investing in building customer relationships
is proﬁtable. The average annual
sales revenue per customer increases
signiﬁcantly as the relationship with the
brand evolves over time, with customers
demonstrating behavioral loyalty
(repeat purchase) toward the brand.13
Furthermore, the ﬁndings in Figure 6
indicate that the performance differences
between segments increase even more
signiﬁcantly over time, indicating the
added value of targeting the “primary
segments.”
13 The percentage of customers who indicate that
Tommy Hilﬁger is the brand they have purchased
most often differs by segment and varies from
9% to 25%. Among the primary focus segments
3, 4 and 7, these ﬁgures are 25%, 9% and 14%
respectively.
For example, an analysis of the results
for repeat purchases shows that segment
4 has the strongest uplift in consumer
spending of all segments. However,
currently, only 9% of this segment said
that Tommy Hilﬁger is the brand they
purchase most often (compared with 25%
for segment 3). This suggests that there is
a signiﬁcant revenue potential to increase
this percentage from 9% to 25%.
Tommy Hilﬁger case
Figure 5. Building a long-term relationship helps to create revenue growth
Index of average annual sales revenue per customer over time across segments
400
Total (all 7 segments)
Index of average annual sales
revenue per customer
359
320
300
278
213
200
100
100
(Index 100 based on ﬁrst-time
buyers of Tommy Hilﬁger)
0
First time buyers
...1-2 years
...3-4 years
... more than 5 years
Customers who have
bought Tommy Hilifger for...
Source: Authors’ research
… as the brand they have
purchased most often
Customers indicating
Tommy Hilﬁger…
Figure 6. Building loyalty among primary focus segments generates added value
Index of average annual sales revenue per customer over time across segments
800
Highest scoring segment
Lowest scoring segment
Total (all 7 segments)
Index of average annual sales
revenue per customer
700
Highest scoring segment: 4
713
600
500
416
400
359
300
268
201
200
309
278
320
213
177
188
156
126
100
100
65 (Index 100 based on ﬁrst-time
buyers of Tommy Hilﬁger)
0
First time buyers
Source: Authors’ research
...1-2 years
...3-4 years
Customers who have
bought Tommy Hilifger for...
... more than 5 years
… as the brand they have
purchased most often
Customers indicating
Tommy Hilﬁger…
67
Furthermore, when looking at other
indicators, the potential of increasing
customer life-time value via targeted
communication becomes clear. Although
segment 4 buys the widest variety of goods
from Tommy Hilﬁger (see Figure 7), the
customer preference for Tommy Hilﬁger
among this segment is weaker than in
segment 3.
If Tommy Hilﬁger were to introduce a
CRM program with segmentation-based
communication, this could strengthen
its relationship with primary segments 4
and 7 while at the same time stimulating
the cross-sell in segment 3. As part of the
market segmentation, we conducted an indepth proposition test. The aim was to ﬁnd
out segments’ preferences for the range of
potential customer offerings that Tommy
Hilﬁger could introduce. The preferences
that emerged differed by segment. This
information provided Tommy Hilﬁger with
a direction for the development of its CRM
program.
Recently, Tommy Hilﬁger launched its ﬁrst
loyalty program aimed at customers buying
Figure 7. Capitalizing on brand preference will help to boost cross-sell
Index of customer preference and variety of product categories purchased
Size of bubble represents share
of segment in total sales revenue
of Tommy Hilﬁger
160
Index of consumer prefeence –
Tommy Hilﬁger as one of the most favorite brands
Segment 3, 25%
Potential of cross-selling
among segment 3
130
Segment 4, 12%
Potential of increasing
customer preference
among segment 4 and 7
Segment 1, 17%
100
Segment 6, 8%
Segment 5, 13%
Segment 7, 16%
Segment 2, 9%
Index 100 based on total of
all Tommy Hilﬁger customers
70
70
100
130
Index of variety of Tommy Hilﬁger product categories bought
Source: Authors’ research
160
Tommy Hilﬁger case
in the direct sales channel. They are now
building up their customer database across
Europe, with both ofﬂine and online direct
sales data. As the number of customers
that have signed up for membership of the
loyalty program grows, Tommy Hilﬁger
will be able to implement large-scale
segmented marketing campaigns. Using
the segments’ proﬁle and the analysis of
individual customer’s buying patterns,
Tommy Hilﬁger plans to approach
individual customers using personalized
communication such as tailored sales and
service offerings.
In order to do so, Tommy Hilﬁger’s
marketing division needed to tag each
customer in the database with a segment
label. We provided Tommy Hilﬁger with
an allocation model to determine which
segment a customer is likely to belong
to. This algorithm has been built for each
segment and country separately.14 The
model is based on a subset of questions
(segment identiﬁer questions or SIQs)
from the original market segmentation
study. These SIQs can be used in
interactions with customers, e.g., when
customers purchase products online or
sign up for a loyalty program. Moreover,
the SIQs can be used in future market
studies, e.g., in brand and communication
tracking in order to closely monitor ATL
brand and advertising performance at the
segment level across countries.
Tommy Hilﬁger is now in
pole position for building
sustainable and proﬁtable
customer relationships
The deployment of segmentation across
its commercial operation enables Tommy
Hilﬁger to optimize its allocation of total
marketing spend (ATL and BTL) and
increase average revenue per customer
(in particular, for members of the Tommy
Hilﬁger loyalty program). Launching
tailored CRM activities aimed at segments
with the highest current and potential
value will help to:
to focus on have now been validated and
are used to (re-)direct investment in
products, channels and communication.
Today, consumer proﬁtability is
understood and managed holistically from
a segmentation point of view, surpassing
the traditional functional areas. The
segmentation perspective is becoming
a key element in the creative brieﬁng
process for the design of new collections.
A segmentation-driven CRM strategy is
now being implemented, with members
of the Tommy Hilﬁger loyalty program
soon to be approached with offerings and
communication tailored to their segmentspeciﬁc needs, value and potential.
• Improve margin by steering customers
to the direct channel
• Increase revenue by stimulating crossand up-sell through optimized product
portfolio
• Increase customer proﬁtability by
strengthening brand loyalty and by
increasing customer lifetime value
Strategic market segmentation has gained
ground as a philosophy throughout the
organization. Whilst the program initially
started from a European CRM perspective,
over time we engaged Tommy Hilﬁger’s
wider commercial operation and helped
the global marketing team to embed
segmentation in its commercial decisionmaking processes. The “primary segments”
14 The likelihood of allocating customers correctly
to the right segment (accuracy level) differs for
each segment/country.
69