Practical Applications of B2B Customer Categories

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Value-Based Segmentation: This dimension considers the potential or actual economic value a customer brings to the vendor.

Lifetime Value (LTV): Estimating the total revenue a customer is expected to generate over their relationship with the company helps in prioritizing sales and retention efforts.

Profitability: Not all customers are equally profitable. Some may shop require extensive support or customization that erodes margins. Categorizing by profitability helps in allocating resources wisely.
Strategic Importance: Some customers, while not immediately high-value, might be strategically important for market entry, brand reputation, or serving as a reference account.

Once B2B customers are effectively categorized, the insights gained can be leveraged across various business functions to drive efficiency and effectiveness.