sive in nature. Building of WAR Segments The WAR segments need to be built at the beginning of each year. They should be constructed and managed by the CRM organization, stored in the customer management system, and reevaluated and refreshed monthly, or at most quarterly. Application of WAR Segments As discussed earlier, WAR segments have only one purpose: the measurement and evaluation of the effectiveness of the customer relationship job done by each of the customer touchpoint business units. TARGETING SEGMENTATION Students of the science of segmentation may think that the segmentation approaches we have discussed thus far seem strange and nonsensical. That is because, for the majority of people, segmentation is about what we call targeting segmentation. Purpose of Targeting Segmentation Targeting segmentation is the development of a customer segment profile, which can be used to identify those people most likely to respond positively to an offer or action. In other words, targeting Chapter 12 Figure 12-4: Targeting Segmentation segmentation is the primary tool of the person trying to determine how to best launch a specific customer-related campaign. Targeting segmentation is what advertising agencies use to determine whom an ad campaign should be directed towards. It is also the tool used by direct marketers when they create and score a direct mail prospect list. Clearly, the CRM and churn management organizations will still have to make use of these fundamental tools. Structure of Targeting Segments Targeting segments can be extremely complex and detailed. Many will involve dozens of criteria (whereas our base-, structural-, and WAR segments have only a few). Targeting segmentation is typically based predominantly on demographic and psychographic criteria and will then include behavioral (especially revenue) and geographic criteria in its definition. Geography will only be a factor for campaigns such as billboard, radio, or print media. Building of Targeting Segmentation The base-, structural-, and WAR scheme