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Agata Broz
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Jan 8, 2024 - 7:55 AM
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ABC analysis is a powerful tool for dividing the customer base according to their contribution to the company’s profits. This method is based on the Pareto principle, also known as the ’80/20 rule’: 20 per cent of customers contribute 80 per cent of profits. ABC analysis provided by Oise Trade https://oisetrade.pl/ helps companies determine which customers are key to the business, which customers bring in the most profit, and which customer groups to focus on.
By dividing customers into groups, Oise Trade Dropshipping company https://oisetrade.pl/en/services analyse preferences, buying habits, demographics and look for commonalities. We classify them according to their value and relevance to our business.
A-customers
A-customers are the company’s most valuable customers, the top 20%. They usually generate the most revenue and ensure stable sales growth.
B-clients
The 30% of customers who generate around 15% of revenue are B-customers. They require quality service and a personalised approach.
C customers
The lowest-value, lowest-volume customers: 50% of customers who generate around 5% of revenue. C-customers are the group with the lowest value and relevance to the seller’s business.
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