In the foodservice industry, adopting a pricing and spending approach grounded in customer segmentation is a best practice. Instead of renewing historical spending rates year after year, segment your customers based on qualitative and quantitative measures. Then, define appropriate pricing and spending levels to optimize the return on investment.
Using customer segmentation, companies drive profitable decision making, build better trade offers, and efficiently prioritize customers relative to one another. Each segment should present value to your organization and determine your reaction to pricing, promotion and other opportunities.
To learn more, download our tactical white paper, Best Practices in Foodservice Customer Segmentation, complete with a 6-step process to identify customer segments.
Why is customer segmentation meaningful?
Your distributor and operator customers are not the same and don’t have the same requirements, expectations and/or priorities. They have broad needs, preferences, resources and behaviors. Segmentation should help your organization focus the right level of effort on the right set of customers.