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"Strategic Customer Portfolio Management in B2B Markets: Balancing Cost-to-Serve and Customer Value"

Huseynov, Orkhan (2025) "Strategic Customer Portfolio Management in B2B Markets: Balancing Cost-to-Serve and Customer Value".

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Abstract:In the evolving B2B landscape, managing customer relationships strategically is key to sustaining profitability. This study explores how B2B firms apply Customer Portfolio Management (CPM) models to segment and manage customer relationships while balancing cost-to-serve with customer value. Using qualitative research based on 31 semi-structured interviews across various industries, the findings reveal that CPM thinking is widely applied—though not always formally adopted—through resource allocation, account tiering, and strategic segmentation. While firms increasingly combine financial metrics with softer criteria like loyalty, feedback, and strategic alignment, challenges persist in integrating cost-to-serve data, CRM systems, and internal governance. The thesis contributes to the literature by bridging theory and practice, analyzing portfolio models such as Fiocca and Bensaou, and proposing an ideal CPM model for B2B firms. These findings highlight the importance of cross-functional collaboration, data infrastructure, and cultural alignment to fully operationalize CPM frameworks. Future research is encouraged to quantitatively evaluate CPM's performance impact and deepen understanding across sectors.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/106862
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