How does Intuilize's customer segmentation work?

Intuilize's customer segmentation is a cornerstone of our pricing strategy, helping you understand your customer base and apply appropriate pricing approaches to each segment.

Our AI-driven segmentation automatically categorizes your customers based on multiple factors:

Core Customers

• Definition: Your most valuable, strategic accounts that are essential to your business
• Characteristics: High volume, consistent purchasing, relatively good margins, strategic importance
• Pricing approach: Carefully managed pricing with focus on retention and strategic growth
• Impact: These customers represent significant value and would cause serious business disruption if lost

VIP Customers

• Definition: Growing customers with high potential value
• Characteristics: Increasing purchase volume, expanding product categories, good margin potential
• Pricing approach: Opportunity for strategic pricing to encourage growth while protecting margins
• Impact: These represent your future "Core" customers and warrant special attention

Standard Customers

• Definition: Regular customers with consistent purchasing patterns
• Characteristics: Moderate volume, predictable ordering, average margins
• Pricing approach: Good opportunity for margin improvement through consistent pricing
• Impact: Typically represent the bulk of your customer base and a significant profit opportunity

Drain Customers

• Definition: High-maintenance customers with poor profitability
• Characteristics: Small, infrequent orders; high service demands; excessive price negotiation
• Pricing approach: Opportunity to improve margins or potentially let go if unprofitable
• Impact: Often consume disproportionate resources for minimal return

Dormant Customers

• Definition: Inactive customers who haven't purchased recently
• Characteristics: No recent purchases despite previous activity
• Pricing approach: Opportunity for reactivation strategies or clean-up of customer database
• Impact: Potential source of additional business if properly re-engaged

Exception Customers

• Definition: Customers with inconsistent purchasing patterns
• Characteristics: Irregular ordering, varied product mix
• Pricing approach: Requires special handling and individual assessment
• Impact: May represent opportunity if patterns can be established

New Customers

• Definition: Recently acquired customers without established history
• Characteristics: Limited transaction data, unknown patterns
• Pricing approach: Strategic initial pricing to establish value and relationship
• Impact: Represents future growth potential if properly managed

Our segmentation uses a decision tree based on multiple attributes, including:

• Purchase volume and frequency
• Gross margin performance
• Sales activity patterns
• Product mix and dispersion
• Ordering consistency
• Growth trends

This segmentation drives our pricing strategy, allowing for tailored pricing approaches for each customer group. The system continuously updates these segments as customer behavior changes, ensuring your pricing strategy remains aligned with your business reality.