The Process
Segmenting customers based on volume, profitability, strategic importance or
even the cost of maintaining them allows an organization to develop and better
manage service levels and costs. Once segments are defined, an appropriate
strategy for managing customers in each segment should be developed. Contrary
to popular belief, high-volume customers, although business critical, don’t
always justify high service levels when the profitability is low. Assuming that
service should be volume based can often lead to higher costs without a
significant return.
UPS