Developing a sound and profitable customer retention strategy must be a top priority for managers to compete successfully in today’s marketplace/space. Segmentation and customer value are major strategic weapons that can be used to assist in this endeavour. From a segmentation perspective, a differentiated approach to target marketing based on usage segments and key account management are two important initiatives to implement.Marketers must realise that all customers are not the same. Clearly some users are much more important than others — these are the A customers or heavy users. This target market requires special attention via resource investment, dedicated sales/support personnel, time commitments, etc. The B customers or medium users often provide the core base for corporate accounts. Strategies for keeping and growing these customers must be designed.