CASE SITUATION: A study has been done regarding the motivation for participants in the sporting event Alpe d'HuZes where thousands of people form teams and climb up and down a famous mountain, following a route which is a well-known stage in the Tour de France cycle race. While the sporting event is designed to raise money for cancer research, there are groups of people who have varying motivation and behaviours for partaking in the event. Some participate for the cause itself, others as a social event, and still others treat it as a competitive event. In addition, for some it is an annual event they circle on their calender, while others view it as a bucket list experience. That said, please help the organizing and planning committee at Alpe d'HuZes with the following questions considering customer segmentation and also the challenges we have discussed to date from a CRM standpoint. Moreover, consider the necessary recommendations with regards to better serving the event's participants and to ultimately achieve the three most important initiatives for Customer Relationship Management.

1.You are approached as a consultant (by the organizers of Alpe d'HuZes) to provide an overview to new employees to why segmenting a customer base is critical in managing Customer Relationships. Please explain how segmentation can help address the 3 main achievement goals for CRM - with as many other industry / company examples as you see fit - to fully explain the value of segmentation, and how it can relate to the situation for Alpe d'HuZes. List and explain what segmentation strategy (what criteria) you would use. (10 points)

2.Now that Alpe d'HuZes has conducted some key primary research it seems like people have varying different types of motivations for which to participate in the annual event. However, now Alpe d'Huzes needs to strategize how specifically the organization should strategically allocate its resources (financial, staff, marketing, sales, supply chain, etc). With that all to be said:

Considering the above 3 main achievement goals for CRM (from question #1), how should Alpe d'HuZes allocate their resources to achieve each goal? In other words, for example, assuming a $100,000 budget for the next year (what % of that would be allocated to each customer segment you have identified), and why?In addition, how should the organization allocate staffing, customer service and sales to each group and why? (6 points)

One the resource plan and breakdown have been allocated, what different marketing tactics would you recommend (as examples), therefore Alpe d'HuZes implement before, during or after the event to the customer segments and why to have the most effective event to date? (4 points)

3.More importantly, after applying the financial and organization resources to the above each 4 customer groups, the organization needs to also know whether the strategic CRM allocation is working. Therefore, what would you recommend to be the specific metrics for Alpe d'Huzes' 12 months after the resources have been implemented (10 points)?

4.You have also been approached to help design the "next" customer segmentation study/primary research to better, more effectively identify four or five customer segments. In addition to the motivation for participating in the event, what other key pieces of information do you recommend Alpe d'HuZes need to obtain so to more effectively create the segments, and why? Please provide examples so to strengthen the survey created for the next wave of primary research (10 points).

Is 4 customer segments can be Behavioral, Geographic, Demographic. Psychographic?