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You are here: Home / Research / Global Supply Chain Laboratory / Industry Projects / Customer Stratification

Customer Stratification

Overview

Customers are the lifeblood of any business, so it is vital for companies to understand their customers and their effects on inventory, pricing, and the bottom line. Customers are often dismissed as exogenous — unable to be retained effectively or categorized and managed in any useful way. But proper stratification methods allow for improved customer relations and subsequent retaining of customers, optimization of sales forces, and more accurate pricing that results in improved margins.

Customer Stratification

Read the Findings Here ›

We have found the information from the customer stratification model to be very useful, pragmatic, and quickly applicable into our business. We have realized some early wins and anticipate a greater positive impact in our business.”

– Art Kostaras, President (Past), Womack Machine Supply Company

‘Customer Stratification’ has the power to enable us to transform our company from being product-driven to customer-driven. It has helped us understand our customers in greater
detail, enabling us to optimize our selling resources, which will result in an improved ROI.”

-Don Schalk, President and COO, C.H. Briggs Company

Challenges

  • Misaligned Sales Force Deployment
  • High Cost-to-Serve (CTS)
  • High Customer Attrition
  • Underpricing or cost-plus pricing

Solutions

  • Multi Criteria Stratification
    • Buying Power
    • Profitability
    • Loyalty
    • Cost-to-Serve
  • Combination Customer Stratification

Benefits

  • Optimal Sales Force Deployment
  • Improved Net Margins
  • High Customer Retention
  • Competitive Value Proposition
Diagram showing how Cost to Serve (CTS) Factors related to Finance, Operations, and Sales are quantified and measured, if applicable.
Customer Stratification

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