How to Use Customer Segmentation to Drive Higher Profits
Like it or not, customers are not all created equal. Are they all equally profitable? No. Can your business afford to service every customer? No. Shouldn’t you treat them all the same? No. No. No.
If you think all your customers are the same, wake up and smell the customer segmentation.
In almost every business, just 20% of customers account for 80% of profits. And many businesses would be better off if they simply did not have to serve the bottom 80% at all! (That’s known as the “Pareto principle” or the “80/20” rule.)
