Sales customer segmentation

Once the customer segments are identified, each segment should be evriluated in terms of its importance to the success of the focal company. Factors such as sales, profit, contribution margin, and competitive threat can be used to select the priority that each customer or customer segment has in the supply chain. 

How can the retailer characterize customer segments based on their propensity to stockpile An empirical study by Iyer and Ye ([50]) takes data regarding retail sales of soup and provides results of a fitted model. Details of this model are provided in Section 4.9, but the key idea is that the characterization of customer segments, their size and propensity to stockpile, can come from a statistically fitted model to data. 

Customer segmentation is not performed or is only defined based on company s sales volume (internal view). 

Table 16.1 shows that Baker has three customer segments and four product lines. The number of represents the profit, not necessarily the sales, earned in each product/segment combination. For example. Baker s... 

The Dell Computer Corporation is famous of its direct business model (see Dell and Fredman, 1999) that assembles customized computer systems based on customer orders, and ships directly from the factory to the customers. Based on Kraemer, et. al. (2000), Dell basically segments its customers into Transaction, Relationship, and Public/Intemational customer segments, in which more refined sales channels, including Home Home Office, Small Business, Medium Large Business, State Local Government, Federal Government, Education, Healthcare, are offered at Dell. By doing so, Dell is able to satisfy special needs in each customer channel. 

Companies can define themselves by the type of customer they seek to service. For this purpose, the customer profitability matrix provides four categories. It requires detailed cost analysis and allocation of indirect costs for all customer segments. This encompasses pre-sale costs (location, need for customisation, etc), production costs, distribution costs, and after-sale service costs. The actual prices charged to different customer segments are subsequently assessed, together with the volume consumed over time and its value. The matrix (Figure 2.4) has net price on the vertical axis, and cost on the horizontal, and is divided into four quadrants ... 

Customer segment C stands for the remaining 5 % of the sales volume. 

Integrate customer-focused marketing plans with the management of the supply chain Comprehensive S OP (sales and operations planning) 1-Customer segmentation and supply chain strategy 0 X X X... 

A very successful plant and equipment manufacturer is the global market leader in technology in their particular supply segment despite a "modest 25m in annual sales. Customers are even willing to wait for these extremely sophisticated systems until they are completed. 

Increased revenues in the targeted categories of the customer segmentation from 3 to 10% per sales representative... 

Sales locations cluster one or multiple customers or marketplaces based on geographical or market segmentation criteria. 

Sales location Markct/rcaion. segment / sub-region, customer cluster/country, customer... 

Table 9.12 lists the main customers of the three major segments of the CPI. The biggest customers of Industrial Chemicals are other Industrial Chemicals companies, which buy more than 20% of all the products, and the next biggest industrial customer is Plastics, which buy more than 15%. Export is a major source of sales at more than 16%. The various sectors of the CPI, such as Rubber, Soap, and Paper, are among the best customers of Industrial Chemicals. The federal and state governments buy 4.5%, but direct consumption by individuals is minimal at 1.0%. 

BASF is a chemical manufacturing company that operates production facilities in 38 countries, owns 159 subsidiaries and serves customers in more than 170 countries. Around 22% of BASF sales are made to North American industries. The firm operates in five business segments chemicals plastics performance products agricultural products and nutrition and oil and gas. The chemicals segment manufactures over 1,500 inorganic, petrochemical and intermediate chemicals for the pharmaceutical, construction, textile and automotive industries. The plastics segment primarily manufactures polystyrene, styrenics and... 

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