B2B Profiling and Market Segmentation

A fasteners and tools wholesale distributor was interested in profiling their customer base to understand how to better market to it. MKT Analytics provided a comprehensive report on sales concentration, customer retention and acquisition, geography, crossover between major product categories and more. 

We also appended SIC codes to develop on opportunity matrix. Using average sales per customer and industry penetration rates, we built a matrix creating four opportunity segments tied to a general strategy for customer management. Those industries that were above average in both sales per customer and penetration rate fell into the Retention quadrant. Those high in sales but low in penetration were Acquisition targets. The strategy for those industries with lower sales and high 

penetration was Cross-Sell/Up-sell. And for the low/low combination, it was Divest.