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Customer Profitability Analysis -practisability
Posted By: manicka* on 2/9/2005 8:12 AM (CST)	125 Points
In this world of competitve environment, how a company can practice the customer profitability analysis. as the customer are showing less loyalty and are concerned about their own resources, how a marketer can implement this concept?

Posted by: Shelley, MProfs	Moderator Response
2/9/2005 9:22 AM (CST)
Is this a university assignment?

Posted by: ASVP/ChrisB	Member Response
2/16/2005 12:15 AM (CST)
Please rephrase the question. It doesn't make much sense as is. Do you mean... - How does a marketer analyse profitability by customer? - How should a marketer respond once they know how profitable a customer is? - How should marketers treat unprofitable customers? -... or very profitable customers? See how many issues there are to consider? What is your specific area of interest? Can you give examples? What industry is this in? Which country? Come back with more detailed info please. ChrisB

Posted by: Stokefire*	Member Response
3/7/2005 9:25 PM (CST)
Why not look to customer loyalty programs? These allow you to track whether or not your patrons come back. Assign IDs, add time, compute. Even without a lot of customer loyalty you'll still get good information. You'll see what your one-time buyers are spending their money on. Tate

Posted by: thinkmor	Accepted Answer
3/9/2005 12:32 PM (CST)
Hi Mk As primers why not read: Jill Griffin's Book - Customer Loyalty - How to Earn, How to Keep it http://www.amazon.co.uk/exec/obidos/ASIN/0787963887/qid=1110389066/sr=1-1/r... The Loyalty Effect - Frederick Reichheld http://www.amazon.co.uk/exec/obidos/ASIN/1578516870/ref=pd_sim_b_dp_2/026-0... Hope this helps you. Zahid Adil

Posted by: manicka*	Author Response
3/12/2005 8:06 AM (CST)
Mr. ASVP, customer profitability analysis is identifying which customer of yours is more profitable from the existing. And providing more benefits to them. Wal mart is having automated connection to its suppliers and the suppliers can access the bills of wal mart to find who has bought how much.

Posted by: manicka*	Author Response
3/24/2005 7:31 AM (CST)
Well, I am sorry that I am not a regular participant in this forum. I got some more information through different sources that i would like to share with you all. This Customer Profitability Analysis is done to identify any type of products like FMCG durables industrial products etc. The important point here is that the marketer should have the complete database of all his customer and the transactions should be recorded. If the customers are too big in numbers it can initially be done to the channle members and can be further extended. thank you, mani

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