Assessment of RACV’s approach to customer segmentation and targeting 1. Segmentation analysis:
RACV has established since 1903 and provides a variety of services to public, including insurance services and investments. The corporation divides its market segment into 2 main parts, members and non-members with different benefits applied to each segment and services. The 2 main market segments require RACV having different approaches to customers. It highly appreciate the loyalty so members always get more special rewards or advantage than other non-members. Applying variety of benefits encourage a non-member or potential customer becoming its member. In terms of insurance, RACV partly focus on members’ benefit, while other competitors do not focus on customers’ loyalty. This company has been run since 1903 as a mutual organization focused on servicing members’ needs. As a result, the number of members has been increasing, 2.12 million with 80,000 new members. Other competitors concentrate only one type of general customers, not members. Relating to finance, RACV also compete with other financial institutions in providing funds. The company has increasing members involving insurance services, the board of directors also offer much benefit to them. While other banks or financial institutions provide funds to customers when their lends are ensured.
2. Targeting analysis:
RACV’s target market has been growing in some ways. Firstly, RACV has more than 2 million members, and the corporation offer more attractive rewards to members so it means that its market size has been extended. Furthermore, it may continue growing because they offer many rewards to members with slogan “the longer you are with RACV, the more you will save”.
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