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Beyond Performance Management: Why, When, and How to Use 40 Tools and Best Practices for Superior Business Performance by Steve Player, Jeremy Hope

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16

STRATEGIC AND PROFITABLE CUSTOMERS

What is this practice and how effective is it?

Strategic and profitable customers are the ones that every organization wants, but accounting systems are hopeless at telling managers which they are–and there aren’t usually many of them. Managers need to systematically evaluate their customers and decide which ones deserve the “satisfaction” dollars and which don’t. But few organizations do this well. We will suggest some simple techniques that can add huge amounts of value.

Alternative names and related topics: customer profitability analysis; customer segmentation analysis; strategic customers

Despite the huge sums they spend on CRM systems and other tools, few companies have a clue about which customers ...

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