Podcast ¦ Punk CX: SRM and why it matters to growth and customer experience – Interview with Ryan Hamilton

Key Takeaways

1. Managing multiple customer segments requires understanding their relationships and potential conflicts, not just targeting their individual needs.

2. A new discipline, Segment Relationship Management (SRM), complements traditional CRM by focusing on relationships between segments rather than individual customers.

3. The growth dilemma emphasises that obsession with growth can be counterproductive if it undermines customer experience or leads to short-term gains at the expense of sustainability.

4. Growth should be pursued strategically, prioritising customer-centric metrics rather than just revenue or market share expansion.

5. Organisations need to carefully evaluate segment compatibility, especially when expanding into new markets or customer types, to prevent conflicts and erosion of existing relationships.

6. The Segment Compatibility Framework categorises segments into four types: separate communities, incompatible segments, leader-follower, and mutually supportive segments.

7. Successful brands often manage to serve incompatible segments by employing strategies such as separating experiences or creating barriers to prevent conflict.

8. Examples include Nike and Starbucks — where brand structures adapt to preserve community or manage conflicting interests across segments.

9. Companies should scrutinise their existing data for signals of emerging or divergent customer segments, which may indicate opportunities or threats.

10. Effective growth depends on understanding what matters to each segment, including their values, needs, and motivations at a behavioural level.

11. Managing brand interactions with segments involves balance — recognising that customers shape brand meaning as much as the brand influences them.

12. Authenticity and consistency in brand purpose underpin success in managing diverse segments and maintaining long-term loyalty.

Key Statistics

• The book The Growth Dilemma, published by Harvard Business Press, discusses managing growth through customer segment relationships.

• Nike historically maintained distinct community-based segments tailored to different sports, but a strategic shift by new leadership temporarily undermined these efforts.

• Starbucks serves two incompatible segments: “third placers” seeking a relaxed environment and on-the-go customers needing quick service; managed through physical store formats.

• The failure of Bud Light’s campaign targeting a progressive segment resulted in a 20% market share decline.

Key Discussion Points

• Managing relationships between multiple customer segments is essential for sustainable growth.

• Obsession with growth as a sole metric can lead organisations into risky, short-term decision making.

• Segment relationships can be categorised into four types: separate communities, incompatible segments, leader-follower dynamics, and mutually supportive segments.

• Brands that manage segment conflict well can enjoy increased loyalty and efficiency, as exemplified by Nike and Starbucks.

• The concept of SRM offers a strategic framework for managing inter-segment interactions, effectively a meta-layer above traditional CRM.

• Leaders in segment management often employ strategies such as building walls or fences between incompatible groups to prevent conflict.

• The importance of data analysis is emphasised in anticipating conflicts or identifying emerging segments.

• Customer-led evolution of segments – creating loyalty and community – is a fundamental part of managing segment relationships.

• Authenticity in brand purpose and values is critical, as seen in the example of Disney’s consistent pursuit of a clear customer experience philosophy.

• Growth should be aligned with delivering value that matters to the customer, rather than chasing size or market share alone.

• Conflicts between segments are inevitable but manageable with proper strategic planning and experience design.

• Organisations should focus on understanding what drives customer needs and preferences, especially before expanding or introducing new segments.

Podcast Description

This podcast explores advanced strategies for managing diverse customer segments with a focus on sustainable growth and customer experience excellence. Featuring expert insights from Ryan Hamilton, an academic specialising in consumer psychology and marketing strategy, it delves into approaches such as Segment Relationship Management (SRM) and evaluates commercial behaviours through a behavioural science lens. The discussion includes practical frameworks, real-world examples, and a focus on balancing growth ambitions with customer satisfaction—aimed at senior managers seeking to refine their strategic approach to customer segmentation and long-term brand loyalty.