CIMA E2 Syllabus A. Business models and value creation - Delivering value - Notes ^{8 / 9}

When delivering value to customers, it is necessary to consider their varying demands, as customers expect their buying journey to be relevant and personalised. Technology has made this easier for organisations as customers can now access services through touch points like phones, tablets, retail outlets and social media.

To meet these varying demands, organisations create customer segments and establish channels to reach each segment.

These segments are based on:

1. Geography

2. Demography (age, gender, etc)

3. Lifestyle and behaviour

4. Purchase journey

5. Psychographic (how people see themselves and their subjective feelings and attitudes towards a particular product or service)

Segments should be:

1. simple to understand

2. measurable

3. meaningful

4. substantial

5. stable

After creating segments, an organisation should be selective as to which segments it caters for. It should target them according to their profit potential and the organisation's ability to serve them. Having done this it does make sense to assess each segment’s performance separately.

An organisation delivers value through:

1. Communication channel

2. Sales channel

3. Distribution channel

These channels must be integrated to satisfy customer needs.