Customer Stratification for distributor businesses
How valuable is each customers?
Using data to answer this question systematically, distributor businesses can focus resources on the right customers - the one's that drive our Net Profit.
The effect can be dramatic.
How it works
In NAW's paradigm shifting book "Customer Stratification", the authors outline best practices for building a data model to assess customer value.
The model assigns one of four customer types to every customer:
Uses for the model an be found in almost every department, driving expenses down and revenue up across the board.
Customer service can prioritize .
Sales can work to streamline the needs of Service Drain customers.
Operations can shift resources from Marginal to Core customers.
And CEOs can watch expenses fall and revenue rise as the organization focuses on the right customers.
We think of it like giving every employee a window into the mind of the CEO - making nuanced judgement calls that were previously impossible.
But designing, building, and implementing Customer Stratification is serious heavy lifting.
We can help.
We lead you through the planning, building and implementation phases, then support you over the long run as you transform your business with your data.
For even more detail of what that looks like, check out this video of our president explaining our process or keep scrolling for how our three phase process works with Customer Stratification implementations.
Step 1: Plan
Planning your Customer Stratification Model is arguably the most important, and difficult part.
We will walk your executive team through a series of questions, thought exercises, and debates that will all answer three questions:
What factors makes a customer valuable (or not valuable)?
What metrics do we (or can we) measure that represent those factors?
How much does each metric matter, relative to one another.
This process drives an unusual level of alignment among leadership teams as each department vies for the factors most important to them, debate the merits of each, and come out with a unified vision of customer value.
Step 2: Build
Next, we work with a key internal project leader to actually build the model. We do all the heavy lifting - extracting the data, assessing it for gaps, and constructing the actual model.
Step 3: Transform
Finally, it's time to use the model to transform your results.
As you get dive in, we help you design new processes and procedures around the model. We walk your people through detailed training seminars. And we
We host the model, maintain it over time, and support your staff as they work to get the most from it.