Abstract
Market segmentation is traditionally based on non-economic customer characteristics. Financial approaches can, however, offer additional insight. Based on customer profitability analyses, this paper offers some financial-based approaches, classified as one-dimensional and two-dimensional or matrix-approaches. By combining these financial-based segmentation techniques with traditional methods, a business unit should have the necessary insight to make decisions in accordance with the marketing concept. According to this way of thinking (market orientation), businesses have two main goals: (1) to satisfy customers' needs by offering products which meet their desires, requests and demands, and (2) to satisfy the business unit's needs by carrying out exchanges that result in long-term profitability.
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Helgesen, Ø. Customer segments based on customer account profitability. J Target Meas Anal Mark 14, 225–237 (2006). https://doi.org/10.1057/palgrave.jt.5740183
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DOI: https://doi.org/10.1057/palgrave.jt.5740183