customer profitability analysis
- customer profitability analysis
The analysis of profits by customer. In the past, management accounting reports focused exclusively on product profitability, but in recent years it has become clear that managers need to understand both product and customer profitability. Typically, organizations that introduced CPA in the 1990s discovered that a small number of customers accounted for most of the profit; identifying profitable customers can therefore be very important. See also lifetime value
Big dictionary of business and management.
2014.
Look at other dictionaries:
customer profitability analysis — CPA The analysis of profits by customer. In the past, management accounting reports focused exclusively on product profitability, but in recent years it has become clear that managers need to understand both product and customer profitability.… … Accounting dictionary
Customer profitability — (CP) is the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler, a profitable customer is a person, household or a company that overtime, yields a… … Wikipedia
customer profitability — UK US noun [U] ► the difference between the profit made from a customer and the costs involved in getting and dealing with the customer over a particular period: »Customer profitability analysis gives an organization the essential information for … Financial and business terms
Customer lifetime value — Contents 1 Definition of Customer Lifetime Value 2 Calculation in customer retention cases 3 Uses and Advantages of CLV 4 References … Wikipedia
Customer satisfaction — Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as the number of customers, or percentage of total… … Wikipedia
Customer Service Assurance — (CSA) in telecom and Internet services means the collection of Communication Service Provider (CSP) customer usage information from all practical sources including network traffic, network devices, content servers, management databases and user… … Wikipedia
profitable customer — A person, household, or company providing long term revenues that exceed, by an acceptable amount, the company s costs of attracting, selling, and servicing that customer. See customer profitability analysis … Big dictionary of business and management
Market analysis — A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and this in turn of the global environmental analysis. Through all these analyses the chances,… … Wikipedia
Porter five forces analysis — A graphical representation of Porter s Five Forces Porter s five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial… … Wikipedia
Dynamic financial analysis — Key Uses Business mix Reinsurance Asset Allocation Profitability Solvency Sensitivity Dependency Elements … Wikipedia
