E-JURNAL Customer Stratification for an Industrial Distributor With a Service and Repair Business

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E-JURNAL Customer Stratification for an Industrial Distributor With a Service and Repair Business

Andy Fowler - Nama Orang;

Customer purchasing behavior is not unique. Com- plex costs to serve make it difficult to manage customers, espe-
cially today, when businesses are offering more value-added services. This research study develops a methodology to allow companies with a service or repair component to segment cus- tomers, as well as manage relationships and growth. This meth- odology differs from existing ones by allowing companies to include the full profit contribution derived from billed labor into the customer profitability calculation. By accurately identi- fying profitability of individual customers, this methodology yields results that are more pragmatic for managers.