Customer profitability score
Key performance question this indicator helps to answer
To what extent are we generating profits from our customers?
Why is this indicator important?
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 only make money if their customers buy the supplying organisation’s products or services), there is a caveat: not all customers are equal. Some customers contribute substantially to an organisation’s ...