Chapter 2
Customer profitability score
- Why: To better understand customer profitability
- What: To measure the levels of profits that different customers are generating
- When: When profitability of customers is vital and when different customer groups are generating different levels of profits
- The question this indicator helps you to answer: to what extent are we generating profits from our customers?
Why does this KPI matter?
Satisfying or, more likely, ‘delighting’ customers has, in recent times, become nothing less than a corporate mantra, the belief being that it is by satisfying the needs of customers that organisations can make a profit and therefore grow and prosper.
Although the basic argument is fundamentally sound (organisations can ...
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