Chemical Industry, Strategy & Business Development
Redesigning Customer Segmentation to Optimize Service
Problem Statement
ChemicalCo aimed to strengthen its customer-centric approach in the Pulp & Paper EMEA market by shifting from margin-based segmentation to a need-based model. However, it lacked a consistent framework to evaluate customer needs across functions and regions.
Legacy classifications varied widely. Sales, SCM, R&D, and Product teams each managed customer demands differently, with no unified structure to prioritize services or allocate resources. This led to inefficiencies, high cost-to-serve, and limited visibility into growth opportunities.
Without a standardized need-based segmentation, ChemicalCo risked overserving low-value customers, underserving high-potential ones, and missing chances to align services with customer willingness to pay.
Key Objectives
Assess and capture customer needs across paper grades and geographies through structured stakeholder engagement.
Design and develop a service prioritization tool to classify and score services by value vs. effort.
Build and validate six need-based customer segments to guide tailored offerings, optimize cost-to-serve, and unlock new growth opportunities.
Delivered Values
€15m
Cost-to-serve optimization potential. Identified efficiency gains by aligning service levels with customer willingness to pay.
30%
Service inefficiency reduction. Reduced wasted effort by streamlining service delivery and prioritizing high-value activities.
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