Agile Network India - Pune Title: Customer Stratification for Business Growth by Manish Jain Date: March 2024 Hosted by: Skelia Technologies

1. Customer Stratification for business
growth
Mar-24

2. Today’s Agenda
01
02
03
Outputs of it
Why is it needed?
What is Customer Stratification?
04 What's in it for customer
05 What's in it for organization

3. Disclaimer
▪ Views, thoughts, and opinions expressed in the session and presentation, collectively referred
as “the content”, belong solely to me in my personal capacity, and not necessarily to my
employer / organization / client.
▪ “The content” is based on my learning, experience as well as knowledge gathered through
material available publicly on the internet.
▪ I do not endorse or promote any organization, committee, product or person through this
session.
▪ I have agreed to the Code of Conduct, Privacy Policy, Speaker Engagement Policy as referred
in the Speaker Application Form submitted by me on Agile Network India website.
Manish Jain (16-Mar-24)
Speaker name and date

4. Customer Stratification
▪ Customer stratification involves analyzing customer data and behavior to segment them
appropriately – and therefore working with them differently.
▪ Categorizing customers and applying resources accordingly helps service provider or
distributors operate more efficiently and identify high-value customers versus customers that
drain value.
▪ This session is to understand how Customer Stratification helps strategizing and grow the
business.

5. Outputs of Customer Stratification?
CORE CUSTOMERS
1
OPPOURTINISTIC
CUSTOMERS
2
MARGINAL
CUSTOMERS
4
SERVICE DRAINERS
3
CUSTOMER
PROFITABILITY
COST
TO
SERVE
CUSOMER LOYALTY
CUSOMER BUYING POWER
ACTIONS
Stretch
Protect
Examine
Eliminate
Develop

6. Business decision-making

7. Why Customer Stratification?
▪ It produces some actionable outcomes that allows companies to grow more sustainable and
profitable business.
Sales team
prioritization
Enhance
Customer
relationship
Increase
Revenue
Price
Optimization
Boost Profit

8. Sample Dashboards Courtesy: GraybaR

9. Sample Dashboards Courtesy: GraybaR

10. What's in it for customer
▪ Customer Incentive Alignment
− Once you’ve segmented your customers, it’s easier to recast customer policies and incentives to
reward high-value customers (dedicated sales coverage, free shipping, discounts, special orders,
etc.), much the way airlines do with preferred customers.
▪ Objective decision Making:
− Formalized policies based on customer performance will also help you avoid the appearance of
subjective decision making, which could otherwise come across as favoritism.
▪ Improved Customer Satisfaction
− Performance-based policies help ensure higher customer satisfaction and loyalty among your most
valued customers.
▪ Perks for Non-Core:
− With concrete metrics and benchmarks (targets), conversations can shift toward bringing non-core
customers more in line with core customers by offering incentives in exchange for meeting future
targets.

11. What's in it for organization
▪ Prioritization-Driven Execution
− Customer stratification helps you narrow your focus so you can quickly identify and act on your most
burning priorities. This conserves your most precious asset — your time.
▪ Strategic Cross-Department Coordination
− Once you understand which customers drive performance, insights from those customers can inform
the actions and decisions in nearly every functional department that interfaces with their buying
patterns.
▪ Performance Benchmarking Across the Board
− Once you understand which customers drive performance, insights from those customers can inform
the actions and decisions in nearly every functional department that interfaces with their buying
patterns.
▪ Proactive Risk Analysis and Mitigation
− it can help pinpoint risks before they become crippling. Core customers can be your canary in a coal
mine, particularly as you delve into key segments of your business

12. Thank You

13. References
▪ http://readcenter.tamu.edu/wp-
content/uploads/2020/11/CustomerStratificationOct29-3.pdf
▪ https://www.youtube.com/watch?v=wZirSMjuGig
▪ https://www.naw.org/5-benefits-that-prove-customer-stratification-is-more-than-a-
sales-tool-driving-performance-with-analytics-8/
▪ https://www.youtube.com/watch?v=6w42dUAhujA
▪ https://whitecupsolutions.com/blog/customer-stratification-101-understanding-how-
to-drive-profit/