The Value
Through customer segmentation, companies rank the value and profitability of
multiple segments in order to harvest cost savings. This is accomplished when
service levels are tailored to the value of each segment. Through segment-specific
inventory management, working capital can be improved. Even SG&A can
experience reduction by better focusing sales and support activities. Typically,
companies that practice segmentation are able to better manage delivery to
customers while defining reliable service levels to each segment.