Customer Stratification for an Industrial Distributor With a Service and Repair Business

abstract

• Customer purchasing behavior is not unique. Complex costs to serve make it difficult to manage customers, especially today, when businesses are offering more value-added services. This research study develops a methodology to allow companies with a service or repair component to segment customers, as well as manage relationships and growth. This methodology differs from existing ones by allowing companies to include the full profit contribution derived from billed labor into the customer profitability calculation. By accurately identifying profitability of individual customers, this methodology yields results that are more pragmatic for managers.

authors

• Natarajarathinam, Malini

published proceedings

• ENGINEERING MANAGEMENT JOURNAL

author list (cited authors)

• Fowler, A., Natarajarathinam, M., & Patwari, K.

citation count

• 3

complete list of authors

• Fowler, Andy||Natarajarathinam, Malini||Patwari, Krishna

publication date

• January 2016

publisher

• Taylor & Francis  Publisher

published in

• Engineering Management Journal  Journal

keywords

• Contract Negotiation
• Customer Stratification
• Labor Costing
• Parts And Service
• Profit Management
• Profitability
• Service

Digital Object Identifier (DOI)

• 10.1080/10429247.2015.1135032

start page

• 14

end page

• 24

volume

• 28

issue

• 1

URL

• http%3A%2F%2Fdx.doi.org%2F10.1080%2F10429247.2015.1135032