Every company tries to know who the best and idealistic customers are and how to idenfity them by use of the special methods. To solve this problem the diamond model of customer stratification, which is the conceptual model, is introduced in this rese...
Every company tries to know who the best and idealistic customers are and how to idenfity them by use of the special methods. To solve this problem the diamond model of customer stratification, which is the conceptual model, is introduced in this research. We modified the customer stratification model developed by Narayanan etal.(2007). By use of this model we can find out them ost profitable customers and then we can plan to improve the profitability of the rest customer groups.
In this paper the diamond model to stratify the customers is introduced. It is a heuristic approach to stratify the customers. Diamond model provides the strategic implications for each customer groups to improve the company's overall performance, especially for unprofitable service-drain, marginal, mass-spot, and relation-oriented customers.
This paper is organized as follows. Section 2 describes the customer stratification model. In section 3, the benefits of customer stratification are explained. In section 4 provides the strategic use of customer stratification model.