$($a$)$ Which customers are your $$A$,$B$,$ and $$C$$ customers? $(8$ points$)$

Show detailed analysis for the classification. It is recommended that you conduct the ABC classification in Excel. Submit your spreadsheet as an attachment.

For my four A$$s that I put they were all contributing over a million dollars in sales making well over $80$ percent of all sales, so these were my top clients for sure. I will try and reward these clients by giving them some type of loyalty program of some sort that will make them feel important

For all my B$$s they were making over $100$k and making roughly around $10$ percent of all sales, so these were my big go getters, but they were definitely spending money. For these clients my main focus would be building a relationship with them and encouraging them to buy even more in the long run.

For all my Cs they were making under $100$k and clocking in around $10$ percent of sales as well there are a client that are close to the $100$k mark but there is also a lot of them that are in the lower thousands as well. For my C clients I think my focus should be the higher thousand clients to encourage their spending more and build a good relationship. The lower thousands will be looked at but not a priority.

$($b$)$ Why did you decide to draw the dividing lines where you did? Describe the classification result AND explain the logic. $(6$ points$)$

The reason I drew the lines where I did because I felt since roughly $80\%$ of sales were coming from my top $4$ sharks that they were justified to have that role. As far as my Bs and Cs this is where things can get a bit tricky because they both only accumulate for only $10$ percent of sales each. The reason I had the cutoff there those was because of how few Bs I had in the C category there were far more Cs than Bs and they were still producing the same amount of sales.

$($c$)$ Under what circumstances would you consider promoting a $$C$$ customer to a higher classification? $(3$ points$)$

$($d$)$ Why might you demote an $$A$$ customer to a lower classification? $(3$ points$)$