Calculating and Reporting Customer Profitablility

2008-07-24 13:28:03 -

www.researchandmarkets.com - Research and Markets (www.researchandmarkets.com/research/2989cf/calculating_and_re) has announced the addition of the "Calculating and Reporting Customer Profitablility" report to their offering.

Not all customers are created equal. More and more, leaders are viewing business as an investment portfolio of customers, some more valuable than others, with the level of investment delivered commensurate to the level of customer value. The profitability of the customer mix is becoming more important than profits of the individual products. This approach is a significant shift from traditional product, service, geography, territory, and function-based organizations. Executives are discovering the benefits of enhancing their customer investment portfolio by creating and executing competitive customer value propositions.

We're not everything to everybody as a community credit union.

We expect the relationship to be mutually beneficial.

--CIO, North Shore Credit Union

While many organizations see the potential value of calculating and reporting customer profitability, not all areas are equally problematic to the organization. Once an organization can identify their customer segments, then what? Typically, the organization will want to know which customers in the segment are profitable and which ones are not. Without understanding how different customers consume costs and resources, organizations cannot successfully calculate customer profitability.

The purpose of this report is to identify and share best practices for customer profitability models, cost allocation methodologies, communication of customer profitability information, and usage of customer profitability to make more effective business decisions. Analyzing the profitability of the customer portfolio and understanding each customer and customer segment is fundamental for the management of the business and is a critical part of being customer-centric.

This final report is organized to correspond with these study scope areas. Chapter 1 summarizes background information and describes the approaches for customer profitability calculation and reporting at best-practice organizations. Chapters 2, 3, and 4 correspond to the study scope. Finally, Chapter 5 describes how customer profitability information is made actionable at best-practice organizations. Greater detail on the practices at any individual best-practice partner can be found in their corresponding site visit summary.

Key Topics Covered:

-Sponsor and Partner Organizations

-Executive Summary

-Study Findings

--Chapter 1 Background and Overview of Customer Profitability Initiatives at Participant Organizations

--Chapter 2 Customer Segmentation

--Chapter 3 Calculating Customer Profitability

--Chapter 4 Reporting Customer Profitability

--Chapter 5 Putting Customer Profitability into Action

-Partner Organization Case Studies

-Index

Companies Mentioned:

- FedEx Services

- Marriot International

- North Shore Credit Union

- Wachovia

- Zippo Manufacturing

For more information visit www.researchandmarkets.com/research/2989cf/calculating_and_re.

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Laura Wood, Senior Manager
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