Customer Service: Differentiating By Market Segment

Most companies establish customer service policies which are then uniformly applied to all customers with the possible exception of providing superior service to the few largest customers. In this article the service provided by the major suppliers in the scientific instrument and supplies industry in Australia is examined. This is contrasted to the service requirements of their customers in toto and by segment. Considerable differences were found between the service provided and the service required. Also service requirements differed significantly between customer segments. Competitive advantage can be obtained by the supplier providing differential service levels by customer segment.