Customer Segmentation

If a customer strategy is to be successful, takeaways must be highly relevant across different customer segments. To ensure a successful customer strategy, a value based customer segmentation is important to understand your current customer base.

The most common mistake we encounter is companies trying to prioritize too many customers at the same time – while underinvesting in others. The result is a sub-optimal resource allocation and neglect of high potential customers.

Customer segmentation map

Segmentation: Profit and growth potential drives decisions

Our most common segmentation model covers the full customer value – revenue, gross profit and cost-to-serve – to drive prioritizations of customers and offerings. By doing so we allow for a targeted Customer Strategy, relevant to the single customer segment.

Having a clear segmentation of your current customer base allows for an effective allocation of resources, thereby answering some of the following questions,

  • How many sales visits should each customer have?
  • How and where should we dedicate category and product specialist?
  • Which customers should have which discount structure?
  • What do we aspire to deliver for each segment?
  • Which service agreements do we allocate to which segment?

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