MODERNIZING CUSTOMER SEGMENTATION STRATEGY
Microsoft has evolved its core go-to-market strategy and customer segmentation approach to be cloud-centric. To modernize Azure’s segmentation, the Tauber team developed a data-driven framework that segments Azure customers based on metrics including customer life time value (CLV), growth potential, and loyalty.
The Tauber team collaborated with marketing and engineering stakeholders to gather and analyze customer consumption data and developed a segmentation framework by leveraging data science machine learning models to calculate the identified segmentation metrics. The segmentation framework provides a more holistic understanding of customers’ characteristics and needs, enabling better targeting and positioning of Azure services. It will allow Microsoft to align go-to-market strategies and sales motions with specific customer segments to drive up profitability, nurture customer growth, and enrich the overall transaction experience.
Read the 2017 Microsoft - Licensing Team Project Executive Summary in the 2017 SPOTLIGHT! book.
Eric Huang–EGL (BSE Computer Engineering & MSE Industrial and Operations Engineering)
Adam Zhang–MBA & MSE Industrial and Operations Engineering
Tom Bartlett –Senior Director, C+E Marketing Business Planning
Richard Chin–General Manager, C+E Marketing Business Planning
Alex Herz –Group Manager, C+E Marketing Business Planning
Hyun-soo Ahn–Ross School of Business
Quentin Stout –College of Engineering
About Tauber Team Projects:
The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.