CUSTOMER PROFITABILITY ANALYSIS
Customer profitability analysis (CPA) can be defined as a method used to compare the costs of all the activities used to support a customer or a customer group with the revenue generated by that customer or customer group. It is the analysis of the revenue and costs that relates to the customers which can be determined by considering the similarities and differences in customers’ buying behaviours and customer preferences.
From the definition, it shows three features of customer profitability analysis. First, customer profitability analysis assigns the costs to individual customers rather than products, services or departments. It allows management to determine which of the customer is profitable or if
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For example, taking an order from the customer, processing an invoice, packaging the product and lastly deliver the product to the customer.
For the second level is customer level activity. It relates on how company managing the customer in terms of acquiring the new customer and maintaining the existing customer or customer group. In this stage, company should know are the element that emphasize by the customer. Customer usually wants higher quality of product at a lower price. Then, they also demand a good service from the company not only during buying the product, but also after sales. To attract the new customer, company can attract by making an initial call and advertise about the new products and what is the special feature. Furthermore, company can make certain promotion to attract the new customer because majority of the customer love to buy the product at lower price. To maintain the customer, company can give samples to the customer so that they can update themselves with the new product. By giving technical support to the product that have been bought by the customer as well as handling the complaint also can retain the customer from moving to the competitors or switching to the other products.
For the third level is market level activities, it relates with the particular markets or class of the customers. This stage is very important as company need to know what their customer wants the most so that they can satisfy their
Goals in the company are to find the right product for the customer’s particular needs and build a relationship with the customers
The aim of work is to provide service guarantees when multiple synchronous requests are present with high disk throughput. To address this problem we consider BFQ and modified versions of BFQ. It is found that MBFQV1 gives a better performance when compared with the BFQ. MBFQV2 is the suggested new disk scheduler which preserve both guarantees and a high throughput. In MBFQV2 we observed that the throughput, speed of transfer were better compared to the other schedulers for the normal size applications.
This stage entails a business’s product to begin to drop in sales, reduce in publicity and popularity, it begins to lose its appeal and competition becomes stiffer and bigger, therefore fewer units are sold.
Conversely, insufficient capacity or inefficient computing resources can stunt growth. The company that waits until it can afford to purchase the right hardware and software may find itself unable to remain competitive. Moreover, although businesses would rather keep their credit lines open for unforeseen events, they must sometimes act quickly to adopt economically attractive new technology. Before we examine the attributes which make leasing attractive to so many companies we need to review two most common types of leasing arrangements.
Your company’s solution should follow and be judged by the following criteria. Accurate Profitability, by allocating costs more precisely you will be able to trace and record each customer’s profits and losses. Future Potential of Customers, with a more accurate method of allocating costs and profitability your company will have a greater understanding when making decisions on the future potential of each
In the third stage the norms in group are formed, team is adapting to the leader. Positions and roles are clarified and the team move forward, they participate
Next we find the amount contributed from each Customer to the overall general and selling expenses based on the number of cartons ordered by each. The end result leads us to each customers overall profitability.
The third stage is the Norming stage, this is where the team members resolve tension and work together as a unified team in order to achieve the teams common goal/goals.
After profitability and lifetime values are determined, these measures are included for determining customer decisions for -
The customer analysis is the depth analysis of the end-users; this entails all of the characteristics of the customer. These characteristics include the following:
First, in aspects of personal selling this cost will be deducted out of the salesperson’s salary whereas all sales personal receive the same amount of salary. Next, the order processing is role of businesses to deliver consumer products accurately when and where the consumer wants the product is beneficial to retail grocery stores, supermarkets and Foodservice wholesalers. Making deliveries order processing top priority will provide the Cooper Company the fortitude to create competitive prices as well as, make deliveries in a cost-effective manner (Sabri, E. H., Gupta, A. P., & Beitler, M. A. 2007).
To analyze customer profitability, we firstly summarize how Pilgrim Bank generates revenues, we found that there are three main ways: (1) Through investment income from deposit
5. How can we deliver the value of the new product to meet our customer expectation
Therefore, many companies start adopting new customer product strategy that can seduce and engage more the customer.
Approach A detailed analysis was carried out to consider how the organisation has adopted a customer-oriented approach as their key strategy for improved business. This includes factors like increased loyalty of the customers,