The use of segmentation allows organisations to reward valued customers and discourage less profitable customers.

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By segmenting customers based on their value and profitability, organisations can identify their most valuable customers and provide them with rewards and incentives to maintain their loyalty. However, they can also use this information to identify less profitable or unprofitable customers and discourage them, for example by reducing or eliminating discounts or promotional offers. This helps the organisation to focus its resources on the most profitable customers and improve overall profitability.

The Use of Segmentation Allows Organisations to Reward Valued Customers