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Purpose: The effect of customer prioritization on financial performance is an issue of considerable debate. Nonetheless, previous studies do not demonstrate satisfactorily whether and how such a prioritization pays off. The present study aims to present clear evidence of the effect of customer prioritization on financial performance. Research design, data, and methodology: Using proprietary data provided by a business-to-business firm, the current study conducts a data mining analysis in order to estimate firms’ cost efficiency and profit efficiency of a promotional campaign. An analytical model is proposed to better assess whether customer prioritization is economically reasonable and how it should be structured. Results: Results show that business customers, who bought the product in the first year, have the high potential to order again. Furthermore, the possibility of repeat orders is proportional to the size of business customers. Moreover, some types of industry have higher possibility of repeat business from customers. Therefore, the findings of the present study imply that by intensifying marketing efforts suiting these categories, firms may be able to capture prospective customers. Conclusion: Customer prioritization ultimately leads to higher profitability because this may affect relationships with prioritized customers positively and reduce both marketing cost and resource consumption significantly. Thus, firms should be able to monitor and maintain customer data properly in order to find suitable customer segments and to prioritize customers. In addition, firms should determine a new suitable prediction model that would help the firms recognize a new trend at the right time and apply the right strategy to compete successfully in the market.
