CROSS FIRE
CROSS FIRE
YOU SHOULD KNOW ‘ PEOPLE ’: The Commercial Sense Of Customer Categorization
By Herman Githinji
I was queuing in the Standard Chartered Bank hall along Kenyatta Avenue one day . I really hate standing in the queues for hours just for a minor banking transaction . So , I was damn bored and agitated . I tried watching the TV programs from the screens but they were not interesting .
My gaze started wandering aimlessly when I observed a customer enter and walk straight to a door written “ Priority Banking .” He was ushered in and entertained with drinks and eats while being served . I was wondering why all of us should not be treated like that customer .
Later at the counter , I was advised that priority bankers are the customers with fat bank accounts . They are the bank ’ s ‘ people ’. They have no time to come to the bank hall and when they come , they come for serious transactions . I was told that the bank wants to make their banking experience consistent with their lifestyles out there otherwise they will take their monies elsewhere .
I realized that not all customers are equal . When customers are lumped together and treated the same , conflict happens and complaints abound . Customer classification
‘‘ I realized that not all customers are equal . When customers are lumped together and treated the same , conflict happens and complaints abound . Customer classification is the beginning of a good sales and customer services strategy . Businesses stand to gain if they categorize customers and tailor sales strategies and actions appropriately .’’ is the beginning of a good sales and customer services strategy . Businesses stand to gain if they categorize customers and tailor sales strategies and actions appropriately .
There are various ways of categorizing customers . In a beer company I consulted for , they were carrying out standard sales and promotional activities in all bars without any classification . The impact of these activities was little .
When we analyzed the bars ’ purchasing behaviors , we realized that some were buying big volumes and frequently , some were buying less volumes and frequently , others big volumes and less frequently , and others were not buying at all .
For effective sales impact , each class needed different sales and promotional activities . The high volume purchase-high frequency category required rewards for volumes and incentives to increase stocks . That would reduce stock outs in the bar and reduce frequency of deliveries .
The low purchase-high frequency
04 MAL 11 / 16 ISSUE