Approaches to customer profitability analysis – An analytical theoretical study

Abstract:

The process of analyzing customer profitability has become one of the most 
important methods used in collecting the required information about customers. 
The main goal of conducting customer profitability analysis is to collect
 data on the costs incurred by organizations related to serving their customers,
 as well as to calculate the returns resulting from dealing with them. Therefore,
 there is a need to accurately determine the cost of each customer and the return 
associated with dealing with him. The aim of the current research is to address 
theoretical concepts related to customer profitability analysis, as well as to 
clarify the methods used by companies for the purpose of distinguishing between 
profitable and unprofitable customers. The research also aimed to clarify the need 
for the company to achieve a balance between the returns resulting from dealing with
 the customer and making him satisfied with the services provided to him.

Keywords: Customer profitability, Cost of Customer, profit of Customer.
 
https://www.iasj.net/iasj/download/96a05df5b206a950

Nazar Habeeb Abbas

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