How to increase sales?
Part 1 – Segmentation of Customers.


We all understand the categorization of customers like A, B,C. But, do you know how important it is to define the segment of your customers. In distribution channel business, we deal with different type of customers. Let’s take a few examples Retailer, Showroom, Trader, Reseller, Corporate, Government, End User etc. So, now the question is what is the advantage of defining the segment.

Recently, I met Mr. Patel, who was one of the top distributor of Gujarat in IT & Electornics Industry. During our discussion, I suggested them to define all customers based on segment. He immediately realized that this is going to be immensely beneficial for his organization. He called the internal meeting the very next day and explained the concept to his team and within week they did the needful.

After, a week they got an opportunity of a distribution of a premium brand earphone. As they have defined the segment they were able to do the data analysis with it. They find out what quantity could sell to each segment based on past performance of other premium products in each segment. The advantage was that the whole team was able to sell the products exactly to those customers who were prospective buyer instead of pushing it to everyone.

It saved not only the time but also helped them to make more sales. Focus working was possible not only in new products but in existing product lines. While reviewing the outstanding and Average Payment Collection Days (APCD), segmentation helped them to recover money faster from the market. Also, they were able to see the profitability of each segment, which otherwise would not have been possible.


So Segmentation helps in

1) Selling fast and more.

2) Saving time.

3) Increase & review profitability in detail.

4) Faster payment collection.

Magenta BI, a Business Intelligence Platform can help immensely in defining and reviewing the segment-wise reports.

Magenta BI provides Actionable Analytics from your business data including Tally, Busy, SAP B1, etc. We help you define the segment and take Action & Growth.

Visit MagentaBi for a free demo today.

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