Customer Profitability

Customer profitability, simply defined, is the difference between the revenues earned from, and the total costs associated with, a customer over a specified period of time. Typically a very small percentage of your firm’s best customers account for a large portion of your net profits. Conversely, a small percentage of your customers usually cost more to serve than the revenue they deliver. These unprofitable customers detract from overall firm profitability. Profit winners and profit losers are a natural consequence of variability in revenues and the true cost-to-serve your customers. With customer profitability insight, you benefit from knowing exactly which customers create value, which destroy value and why.

Find out how Acorn's solution solves the common challenges found in implementing customer profitability initiatives [ read more ]		Get a snap shot of what Acorn's Solution provides [ view samples ]

Additional Resources

Schwab Directs Profitability Analysis Toward the Small Picture

Customer Profitability Analysis

Imported vs Domestic Sourcing

Customer Profitability Analysis

A Balanced Scorecard Approach to Measure Customer Profitability

Applying Customer Value Analytics to Boost Your Stock Price

Drive Growth With Customer Profitability Management