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Best Practices: Foodservice Customer Segmentation


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 💰
  • better trade offers 📊
  • efficient prioritization of customers relative to one another 🏆

Each of your customer segments should present value to your organization. The segments should determine your reaction to pricing, promotion and other opportunities.

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.



As Paul Wietecha, CEO of Blacksmith Applications notes, “All customers are not created equal; potential profit varies. Segmentation helps companies allocate scarce resources – money and people – where they’ll deliver the highest payoff.”

To learn more, download our tactical white paper: Best Practices in Foodservice Customer Segmentation.