Get our FREE Digital Transformation Templates. This is an exclusive promotion being run on LinkedIn.
  This is a partial preview. Full document is 69 slides. View large preview.
If you are logged in, your referral link [?] is automatically included below.
EMBED CODE (Copy and Paste)


BENEFITS OF DOCUMENT
  1. Learn why customers are the source of shareholder wealth creation.
  2. Understand how to shift the mindset from growing sales to growing profitable sales and to view customers as investments like in a stock portfolio to seek higher ROIs ? return on customers (ROC).
  3. Learn why the marketing and sales functions need accounting data to better formulate customer account strategies including compensation incentives.

DOCUMENT DESCRIPTION

The only value a company will ever create for its shareholders and owners is the value that comes from its customers ? current ones and new ones acquired in the future. To remain competitive, companies must determine how to retain customers longer, grow them into bigger customers, make them more profitable, serve them more efficiently, and target acquiring more profitable customers.

Customers increasingly view suppliers' products and standard service lines as commodities. This means that suppliers must shift their actions toward differentiating their services, offers, discounts, and deals to different types of existing customers to retain and grow them. Further, they should concentrate their marketing and sales efforts on acquiring new customers who have traits comparable to those of their relatively more profitable customers.

As a result of this shift from being product-centric to customer centric there needs to be an increased emphasis on measuring current and future potential profitability of products, standard service-lines, channels, and customers. (For business to consumer (B2C) industries, there is need to also consider applying of "customer lifetime value (CLV)" metrics.)

A mind-shift is needed from pursuing increased sales volume at any cost ? to profitable sales volume. Cost accounting leveraging business analytics is essential to achieve this result. Organizations realize it is substantially more expensive to acquire new customers than to retain existing ones. This focus on customer retention combined with the recognition that spray-and-pray mass marketing of products and service-lines is being eclipsed by direct one-to-one to marketing with customers and prospects is causing the need for the marketing function to require financial data on customer profits and future value. Why? Because given any company's scarce resources, it should attract its relatively more profitable customers rather than high maintenance ones whose substantial cost-to-serve erodes profit margins.

Which types of customers are worth more to retain, grow, acquire, or win-back? And types are not worth pursuing? And how much should you optimally spend on each type of customer micro-segment?

The Internet is irreversibly shifting power from sellers to buyers. Suppliers must react. Earning, not just buying, customer loyalty is now mandatory. A popular term in CRM circles is customer lifetime value (CLV) ? measuring each customer as if they are an investment with an ROI. Is this another fad or a real need?

Got a question about the product? Email us at [email protected] or ask the author directly by using the form to the right. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Measuring and Managing Customer Profitability PowerPoint document

This document can be purchased as part of a discount bundle:

Analytics-Based Enterprise and Corporate Performance Management Bundle View Details
 

Measuring and Managing Customer Profitability

Sold by Gary Cokins (this author has 7 documents)

$49.00

ALL FEES INCLUDED
Add to Cart
  

This business document is categorized under the function(s): Corporate Finance   Strategy, Marketing, & Sales  

It applies to All Industries.

File Type: PowerPoint (ppt)

File Size: 4 MB

Number of Slides: 69

Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.

This product contains a supplemental PDF document.

Initial upload date (first version): Apr 29, 2018
Most recent version published: Apr 30, 2018

Ask the Author a Question

Must be logged in Click here to log in

Report

SELECT CUSTOMERS

Flevy has provided quality business documents to businesses and organizations of all sizes across the world—in over 60 countries. Below is just a very small sample of our customer base.

VIEW BY


Are you a business professional?
Join Flevy and sell your business documents.

Just as the mobile apps market has helped software developers earn sustainable, passive income, we hope Flevy will do the same for business professionals, like yourself. There's no reason to let your IP collect dust when it can be making you perpetual income.


CUSTOMERS ALSO BOUGHT THESE DOCUMENTS

Digital Transformation Strategy
Listed under:  Information Technology  Strategy, Marketing, & Sales
View more from: LearnPPT   Top Flevy Author [?]
118-slide PowerPoint deck. Digital Transformation is being embraced by companies across most industries, as the role of technology shifts from being a business enabler to a business driver. Transformation is driven by 6 Technology Trends: - Social Media - [read more]
$89.00

Add to Cart View Details

1000+ Consulting Diagrams, Templates & Graphics
Listed under:  PowerPoint Templates  Strategy, Marketing, & Sales
View more from: Operational Excellence Consulting   Top Flevy Author [?]
1108-slide PowerPoint deck. This presentation is a mega-collection of 1000+ fully editable consulting diagrams, templates and graphics to enhance your PowerPoint presentations, increase productivity and create visual impact. The above preview only displays less [read more]
$49.00

Add to Cart View Details

Business Consulting PPT Templates
136-slide PowerPoint deck. This set of 135 professionally designed slides will make your presentation look as if it came straight out of McKinsey or BCG! These templates can be used for any type of presentation such as a sales pitch, investor pitch, board meeting [read more]
$20.00

Add to Cart View Details

Business Case Development Framework
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: LearnPPT   Top Flevy Author [?]
32-slide PowerPoint deck and supporting Excel workbook. The Business Case is an instrumental tool in both justifying a project (requiring a capital budgeting decision), as well as measuring the project's success. The Business Case model typically takes the form of an Excel spreadsheet [read more]
$49.00

Add to Cart View Details

875+ High Impact Presentation Templates
878-slide PowerPoint deck. This presentation contains pretty everything you are ever going to need to make your big presentation rock! You will find tons of templates on - 1. Coverpages 2. Section Dividers 3. Graphs and Charts 4. Text Layouts 5. Image [read more]
$49.00

Add to Cart View Details

Complete Business Frameworks Reference Guide
Listed under:  Organization, Change, & HR  Strategy, Marketing, & Sales
View more from: LearnPPT   Top Flevy Author [?]
388-slide PowerPoint deck. This is a very comprehensive document with over 350+ slides--covering 56 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. [read more]
$199.00

Add to Cart View Details

Strategic Plan Document Template
Listed under:  Organization, Change, & HR  Strategy, Marketing, & Sales
View more from: Haines Centre   Top Flevy Author [?]
38-page Word document and supporting Word. This template is a comprehensive template for a Corporate Strategic Plan, and consists of 2 documents: 1. The Strategic Plan Document Template, 38 pages, which is for the main body of the Strategic Plan Document. 2. The Strategic Plan [read more]
$99.90

Add to Cart View Details

Value Proposition Canvas
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: Operational Excellence Consulting   Top Flevy Author [?]
90-slide PowerPoint deck. The Value Proposition Canvas is a tool developed by Alex Osterwalder at Strategyzer which can be applied to understand your customers' needs, and design products and services they want. Understanding your value proposition for each [read more]
$59.00

Add to Cart View Details

Strategy Planning and Deployment Process
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: Operational Excellence Consulting LLC   Top Flevy Author [?]
100-slide PowerPoint deck and supporting Excel workbook. Our Strategy Planning and Deployment Process, using Strategy Maps and Hoshin Kanri, provides an organization with simple and effective methods and tools to develop, communicate and align its business objectives, strategic initiatives, [read more]
$44.50

Add to Cart View Details

Business Case Template Excel
Listed under:  Organization, Change, & HR  Strategy, Marketing, & Sales
View more from: Documents & Files   Top Flevy Author [?]
Excel workbook. For individuals who are fairly new at developing business cases, the Business Case Template Excel file provides a step-by-step methodology for developing a high level business case. This Template Excel is also a companion document of the [read more]
$59.99

Add to Cart View Details

What project are you working on?
Channel Distribution Strategy Example?   Supply Chain Analysis?   Lean?   Or something else.
Have a look at our holistic Business Toolkits. We have over 250+ toolkits covering a wide range of business topics.