Customer departmentation
Customer departmentation groups organisational activities around distinct customer groups or segments. It can help teams understand specialised needs and provide coordinated service to each group. Potential disadvantages include duplicated resources and inconsistent policies across divisions. Shared functions may therefore remain central while customer-facing activities are grouped separately.
Worked example
An equipment supplier has healthcare, education and industrial-customer divisions. Each division combines sales and support expertise relevant to its customers, while a central finance team processes invoices.
Common mistake
Separating products on shelves does not by itself establish customer departmentation. Identify which customers the organisational units serve and the responsibility assigned to each unit.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |