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This chapter is from the book

Experiment with Segmentation

Rackspace started with a typical revenue-based segmentation. Today, the smaller SMB type accounts exist in the online world and the larger accounts with a direct sales model. However, they look at solution segmentation in the future. As Kleber discusses, “With the new solutions we’re providing to our customers, it’s harder to segment the account base by solution, especially the prospect base, but I think at the end of the day, customers are coming to us to do a job and solve a problem, and we need to speak to them in that language.”

Service Matters!

Services are going to become even more of a differentiator for businesses in the future. At Rackspace, service is so much of the culture. As Kleber comments, “I think we’re not just fanatical with customers, we’re fanatical with each other. We’re fanatical everywhere. My wife remarks that ‘you’ve really changed.’ So, it’s a pervasive sort of cultural here, but I think even beyond that, you just notice that companies that do the best in the market in any given industry are the ones that have figured out how to surprise and make customers say, ‘Wow, you know, that’s really great.’” The fanatical approach begins when you first log onto the site rackspace.com and with the first chat! See Figure o1.4 for some of the fanatical responses I got when I logged on to ask some questions!

Figure 4

Figure. o1.4 Live chat at Rackspace.

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