In previous articles on customer analytics and what to do with accounts that cost you money, we discussed how Distributors can benefit from segmenting their customers based on net profits and ease of working with them. For the best customers, Distributors can devote resources to maximizing the business relationship, while for less profitable and less efficient customers, Distributors can find ways to lower cost-to-serve and increase dollars per transaction. For most Distributors, the overwhelming majority of customers – so-called “Regular Customers” — are relatively small in terms of number of orders per customer and size of orders. As a group, the total sales revenue from regular customers may equal or even exceed the total revenue from the best customers, but the bottom-line net profit may nominal or negative. While these smaller customers may require more thought and more work, they nonetheless can be managed to generate significant net profits for the Distributor, depending on the tactics used.


