EMM Group

Case Study: A Proprietary Segmentation Technique Produced a 42% Increase in Margin During an Economic Downturn

Background

A construction finance business was struggling to manage the downturn in the industry. They asked EMM Group to develop a strategy that would focus scant resources on the highest potential opportunities in the market and develop a differentiated offering that would command a premium. Achieving both goals would shore up margins and improve return on equity.

Action Plan

EMM Group applied its proprietary segmentation technique and identified an attractive new needs-based segment: “the progressive buyer.” Insights about the targets were developed and a new value proposition crafted. A new customer experience was designed to meet the needs of the segment.

Results

The client’s sales team piloted the segmentation approach in two regions. Despite stagnant results throughout the construction finance industry, the margins in the pilot regions increased by 42%.

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