case in point Title: Channelizing resources through customer Preferability analysis Industry: Consumer Goods and Services Country: China
Challenge • The firm was facing resource constraints and wanted to put some of its customers on the back burner • Channelize it’s resources towards servicing the preferred customers better • Holistic approach to measuring customer preferability
Approach • Identify the variables , including derived variables to be used for analysis • Applied three alternate approaches for coming up with the less preferred customers list: • Approach 1: Dimensional segmentation • Approach 2: Decision tree approach – CHAID • Approach 3: Clustering
Result • Segment of less preferable customers is formed based on the recursive partitioning of data • Out of 3000 customers we identified a list of 450 customers with • low sales, low profit margins and • low sales/profit per order • potential for growth blueoceanmi.com | 1
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