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What is Customer Portfolio Matrix
Customer Portfolio Matrix is an analytical technique that is part of the concept of Total Loyalty Marketing (TLM). The purpose of this analytical technique is to map the business customer portfolio within the marketing research and use of marketing information system and to visualize the results using the matrix.

Customer Portfolio Matrix is an analytical technique that is part of the concept of Total Loyalty Marketing (TLM). The authors are German specialists Anne M. Schüller and Gerhard Fuchs.

The purpose of this analytical technique is to map the business customer portfolio within the marketing research and use of marketing information system and to visualize the results using the matrix.

The matrix consists of nine fields (segments), which are arranged in 3×3. On the horizontal axis is evaluated the ascending degree of customer loyalty and on the vertical their ascending profitability for the organization (enterprise). Least interesting customers are in the bottom left segment, the most interesting are in the top right.

Use of the customer portfolio matrix in practice: The matrix is used to evaluate customer portfolio. The enterprise should focus primarily on customers from the as much on the right side and on the top segments. On the other hand, customers from unfavorable segments should be “reoriented” into the favorable segments. Failing that, the enterprise should not unnecessarily invest in relationships with customers who “remain” in unfavorable segments.

Customer Portfolio Matrix chart ManagementMania logo

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Last update: 23.07.2015

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