Analysis and development of customer segmentation criteria and tools for SMEs

Sebastian Schubert

in EconStor Theses from ZBW - Leibniz Information Centre for Economics

Abstract: In order to use the limited resources of sales and marketing optimally, and to provide customers with the best services, effective customer segmentation is of prime importance. This thesis deals with methods for analysing and comparing the individual values of customers for SMEs (Small Medium Enterprises), because not all customers bring the same value to the company and not every customer can be treated in the same way. The different segmentation models are judged by different criteria. Which segmentation method allows a company to treat customers in the best possible way based on their value for the company? To answer this question first requires the SME company to determine whether they know the monetary or non-monetary value of their customers. The researcher examined if the size of the company influences the choice of segmentation criteria and method. To determine this, it is necessary to address which companies are SMEs. The main methods are reviewed extensively likewise available software models were evaluated and included in the research, and the advantages and disadvantages are compared. For this research topic, a mixed-method design was chosen. The researcher carried out one-to-one semi-structured expert interviews and, parallel to the qualitative research, quantitative data from a technical retailing company’s database was analysed. The company has data from more than 10,000 customers in the business warehouse and CRM system. The results of this research provide new thoughts to reflect on whether the segmentation methods of the existing literature are useful for SMEs in the B2B business and provide the basis for further research and development in this field. The new segmentation method, identified and confirmed through follow-up interviews in this research, will be of immense value to practitioners. Especially for sales and marketing managers working in this field.

Keywords: SME; ABC analysis; customer value; customer segmentation; customer lifetime value; scoring method (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esthes:300253

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