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25 Need-To-Know Key Performance Indicators by Bernard Marr

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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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