EESTI ENERGIA’S SEGMENTATION MODEL AND VALUE PROPOSITIONS
“Ranno Pajuri’s systemized approach to brand management ensures clarity about the focus and support to the company’s brand equity building efforts on all levels of the management team.”
Eesti Energia is an international energy company owned by Estonian state. Target One was hired to help setting up the optimal customer segmentation model prior to retail electricity market’s opening for competition in Estonia as well as composing the segment based value proposition system. The company had some 700 000 customers in its database with several hundreds of different legacy characteristics attached to the customer data.
Target One arranged a series of workshops and interviews with the company’s retail arm’s managers in order to screen out the most important segmentation criteria, which required different approach either in marketing or customer service. In addition, data from several customer satisfaction researches was analyzed in order to attach the most important drivers to the potential customer segments. The workshops were followed by brainstorming sessions to combine the clients’ expectations with Eesti Energia’s existing and potential benefits as well as most dominant market trends.
A logical segmentation model with key customer segments was described. The segmentation model would be used as bases for setting up the client relationship management and service system and marketing strategy.
Segment based value propositions were described, which formed the foundation for the company’s house brand positioning as well as the retail strategy of energy product.