For small retail and service businesses, how can customer segmentation be both practical and effective? This paper introduces the Customer Value Matrix, a segmentation approach tailored for these businesses. Discussion offers insights into the reasons for the development of this practical approach, a concrete methodology for its implementation, and strategic and tactical applications of the concept. Material is supported with strong evidence from “real‐world” examples featuring a variety of small retail and service businesses. The Customer Value Matrix, a customer segmentation approach that is especially well‐suited for small retail and service businesses. Chains of small retail or service businesses can take advantage of local relationship marketing. The awards publicly recognize the achievements of the organizations which have successfully adopted the concepts of total quality management. The winners serve as useful role models for other organizations intent on adopting total quality management practices.
This paper is published in the Journal of Consumer Marketing, emphasizing customer-centric approaches and value. The paper's focus on segmentation tools for small businesses fits this topic well.