1 / 6

Managing Customer Profitability

Managing Customer Profitability. Chapter 6. Customer profitability. Applying ABC to customers or customer groups Customer is the “cost object” What activities are performed to service customers? Can the activities be managed? What costs are related to serving individual customers or groups?.

liesel
Télécharger la présentation

Managing Customer Profitability

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managing Customer Profitability Chapter 6

  2. Customer profitability • Applying ABC to customers or customer groups • Customer is the “cost object” • What activities are performed to service customers? • Can the activities be managed? • What costs are related to serving individual customers or groups?

  3. Customer profitability

  4. Customer profitability • Financial considerations • Profit • Pareto principle (80/20 rule) • Which customers fall into which group? • A large market share is not always best • Return on sales • Profit (or loss) / sales

  5. Customer profitability

  6. Customer profitability • When to keep unprofitable customers • New customer • Possibility of converting them to a profitable one • Improve efficiency • Reduce activities • Menu-based pricing • Nonfinancial considerations • Opportunity to learn • Prestige • Entry into new market

More Related