This How to Build a Profitable Customer Base online training course explores the analysis of what makes a customer profitable and how is that analysis conducted.
Traditional profitability analyses focused on goods and services. However, once the focus shifted from products to customers, profitability analysis also pivoted accordingly. Companies across the globe realized that there was an ideal segment of customers who were less price sensitive, pressurized the organization less, and contributed to higher profits.
The idea behind customer profitability analysis is to use data analytics to identify these different groups and accordingly make adjustments that will allow less profitable customers to become more profitable, instead of dropping them.
In the first module you will explore the concepts of customer profitability analysis. You will learn about the relationship between cost and customer service. Specifically, how different types of customers impact the profitability of your organization, based on how much demand they place on the system.
The second module demonstrates the applicability of customer profitability analysis through examples. You will review a case study of a bank that implemented activity-based costing to realize customer profitability. You will learn about the challenges and benefits and reflect on how your organization will receive a similar program.
Course Learning Objectives:
On completion of this How to Build a Profitable Customer Base course, the user will learn:
- State the primary objective of customer profitability analysis
- Assess variations in profitability among your organization's customers
- Examine the relationship between sales and the cost of customer related services
- Identify the elements of customer profitability
- Explain how Customer Relationship Management systems support customer profitability analysis
- Explain how activity-based costing (ABC) is used in customer profitability analysis
- Discuss the benefits of customer profitability analysis for banks
- Identify the barriers to adopting customer profitability analysis and how they might be overcome
- What is Customer Profitability Analysis?
- Customer Profitability Analysis in Action
This How to Build a Profitable Customer Base online training course was designed for C-suite and business analysis employees.
If you have any concerns as to whether this course is appropriate for you or your industry, please browse our full selection of online courses.