MANAGEMENT


Segmenting Customers for Profits HENRY CANADAY


A distribution business was experiencing poor sales and profits because it had been trying to treat all its customers equally. The company de- cided to segment its market, prioritize its services, and reassign reps based on the segmentation. What was the result?


18 | OCTOBER 2016 SELLING POWER © 2016 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION. THE PROBLEM


A family-owned business distrib- uted $20 million a year of electrical products by focusing equally on all segments in its local market. Sell- ing through 10 inside salespeople at five branch locations – and 12 outside salespeople reporting to the owner-sales manager – the company attempted to provide good service to all 5,000 customers.


Now that sounds like a noble


JIRSAK / SHUTTERSTOCK.COM


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