Segmentation in the Chemical Industry – Understanding your Customer

Clearly, chemical companies can benefit from a more sophisticated segmentation process. That process should begin with a richer understanding of the customer that is based on three complementary perspectives: customer needs, customer behavior and customer attractiveness.

Chemical companies, said Ansgar Wille, Senior Director of M&S Excellence Program at Royal DSM, for Chemicals S&M Toolbox attendees last year, nowadays understand the need to segment customers and provide differentiated offerings to different customers, and many have launched segmentation initiatives. I have identified five key beliefs in defining customer service levels across customer segments, continued Ansgar:

  • Prioritization of service levels is critical: only 5-10 customer service levels deliver most of impact across the process chain from selling to delivering and receiving payment
  • Create service level privileges linked to each customer segment (e.g., Diamond+ for A customer segment) to manage “cost of service” optimally
  • Determine “no-go” areas and up charges that take into account both back end complexity costs and customer willingness to pay
  • Exceptions to be managed according to clear guidelines and rules
  • Embedding of service levels to be ensured through controlling mechanisms and hardwiring of rules where possible

Ansgar was one of our top-rated speakers last year and we are glad to have him back for the 3rd Annual. This time, he will deliver a presentation entitled Key to a Successful Commercial Transformation.  “I am excited to be back at the Chemicals S&M Toolbox Forum. I will talk about a topic that is close to my heart, introducing new ways of working to progress on the journey to Excellence in M&S!”, says Ansgar for EBCG. Don’t miss his Keynote and join us in Berlin on 10-11 June.

About Ansgar Wille

Ansgar is Senior Director of M&S Excellence Program Capture Value and People & Performance at Royal DSM and keynote speaker on the Chemicals Sales & Marketing Toolbox in Berlin.