Segmentation

What is segmentation in logistics?

Different consumer needs lead to variations in consumer behavior and a wide range of products and services. Based on this knowledge, every market can be segmented, including the logistics market.

Segmentation enables producers and service providers to address customer wishes in a more targeted manner.

What challenges does segmentation pose for logistics?

There is a particular challenge in segmenting the logistics sector. As primary service providers, logistics companies are not only in competition with each other, but also with providers of secondary services. This means that many companies carry out their own logistics and do not use external services.

These additional challenges make it more difficult to provide services in logistics:

  • The immateriality of the service itself
  • Integrating customers into the logistics process
  • Immense competition

However, direct contact between logistics companies and their customers also provides the opportunity to reliably obtain relevant market information. These can then be used to adapt the range of services.

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Segmentation

Image: pluie_r / Shutterstock

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