E-BOOK – Customer Stratification: Best Practices for Boosting Profitability

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Customer stratification is a critical business process.
Best-in-class distributors categorize customers based on various factors, but customer stratification has long been an unexplored area for most distribution companies. Not anymore. At last, that gap is filled by this first-of-its-kind research study, Customer Stratification: Best Practices for Boosting Profitability.

Specifically for wholesaler-distributors, this pioneering study offers you 20 practical action steps that your company can implement today and over time as a result of the best practice research conducted with 68 real wholesaler-distributors across multiple lines of trade.

This cutting-edge study focuses on the four key dimensions:

Buying Power
Customer Loyalty
Rather than focus on sales force communication, this research focuses on customer relationships and the value customers provide to their wholesaler-distributors. That value is achieved through:

increased revenue—the value to the customer must be addressed
decreased expenses—complex service offerings and how the customer accesses them are key factors
optimal allocation of assets—driven by customer and supplier expectations.
Most customer stratification applications focus on a single dimension, such as sales volume or gross margin. But this doesn’t guarantee a profitable or practical result. This study presents the customer stratification framework, a distributor-specific cost-to-serve model, a step-by-step implementation approach, and a series of real-world case studies. The customer stratification framework not only distinguishes customers from each other, but also provides a blueprint for conducting future business. The book concludes with a plan-of-action roadmap, which provides an action plan and suggestions for implementing a customer stratification framework at your company.

This book is a collaboration of the NAW Institute and Texas A&M, two leaders in wholesale distribution education and training.