Customer profitability analysis:

1995 ◽  
Vol 10 (7) ◽  
pp. 3-7 ◽  
Author(s):  
Malcolm Smith ◽  
Shane Dikolli
Keyword(s):  
Customer Profitability ◽  
Profitability Analysis

The role of organizational culture in the adoption of customer profitability analysis: a field study

2017 ◽  
Vol 14 (1) ◽  
pp. 38-59 ◽  
Author(s):  
Matthew Fish ◽  
William Miller ◽  
D’Arcy Becker ◽  
Aimee Pernsteiner
Keyword(s):  
Organizational Culture ◽  
Financial Reporting ◽  
Performance Measurement System ◽  
Growth Spurt ◽  
Stage Model ◽  
Customer Profitability ◽  
Content Type ◽  
Implementation Team ◽  
Profitability Analysis

Purpose The purpose of this paper is to examine the role of organizational culture as a company migrates through a four-stage model for designing a performance measurement system (PMS) focused on customer profitability. Design/methodology/approach This is a single-site phenomenological case study, at Growth Spurt Marine Accessories (Growth Spurt), a manufacturing organization headquartered in the USA. Data were collected over a two-year period through interviews with accounting staff, internal company documents and recording observational notes. Findings The paper identifies three major factors that prevented Growth Spurt from transitioning its customer profitability analysis (CPA) reporting package through Kaplan and Cooper’s four-stage model of PMS design: executives exerting their power and spending political capital to prevent implementation without providing rationale, executives believing that the allocation methods were too subjective and executives relying on their own intuition in analyzing customer profitability rather than relying on data. These factors suggest that organizational culture plays an important role in migrating a customer-focused profitability PMS through Kaplan and Cooper’s four-stage model of PMS system design. Research limitations/implications The findings suggest that a PMS focused on customer profitability that does not advance beyond Stage II (financial reporting-driven) may still suit the needs of an organization. Additionally, managers should advocate for a multidisciplinary PMS design and implementation team to minimize potentially adverse effects of organizational culture. Originality/value This paper is unique because it applies Kaplan and Cooper’s four-stage model for PMS design to CPA and it uses a phenomenological case approach to explore impediments to a comprehensive CPA implementation.

Ethical Yielding

2015 ◽  
pp. 229-237
Keyword(s):  
Product Development ◽  
Capacity Management ◽  
Yield Management ◽  
Customer Profitability ◽  
Market Segments ◽  
Profitability Analysis ◽  
Regular Customer ◽  
Value Relations

Customer Profitability Analysis (CPA) is a procedure that provides management with information related to customers that will allow them to manage revenue from a profit perspective. The data attained from CPA will assist with decisions regarding marketing, product development, and capacity management to create a customer mix, which will provide the best profit results. BAR means the best available rate, in which a regular customer is charged in case he has approved to reserve. The various stages of yield management include: 1) grow a profit culture, 2) study the overall demand, 3) create price value relations, 4) form suitable market segments, 5) evaluate the pattern of demand, 6) find the failures and denials, and 7) assess and review the system.

scholarly journals A marketing view of the customer value: Customer lifetime value and customer equity

2013 ◽  
Vol 44 (4) ◽  
pp. 47-64 ◽  
Author(s):  
A. M. Estrella-Ramón ◽  
M. Sánchez-Pérez ◽  
G. Swinnen ◽  
K. VanHoof
Keyword(s):  
Customer Value ◽  
Customer Lifetime Value ◽  
Customer Equity ◽  
Future Research ◽  
Customer Profitability ◽  
Profitability Analysis ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Equity Measures

Throughout this research the customer valuation trend in marketing is going to be reviewed, emphasizing Customer Lifetime Value and Customer Equity measures. The main theoretical contributions in the development and evolution of the Customer Lifetime Value concept are analysed. Customer Lifetime Value is also differentiated from Customer Equity and Customer Profitability analysis to estimate customer value in terms of firm profitability. Customer Lifetime Value and Customer Equity concepts are formally defined. Additionally, a classification of a set of published researches into Customer Lifetime Value and/or Customer Equity is developed. This classification has been posited according to several criteria that serves as a guide to key requirements for developing these types of models. Finally,several conclusions, suggestions and future research streams are highlighted.

scholarly journals De lange en moeizame weg naar Customer Profitability Analysis (CPA)

2005 ◽  
Vol 79 (10) ◽  
pp. 495-501
Author(s):  
Michael Corbey ◽  
R. Slagmulder
Keyword(s):  
Activity Based Costing ◽  
Customer Profitability ◽  
Profitability Analysis

Customer Profi tability Analysis (CPA) is een methode om de winstgevendheid van klanten te analyseren. Als basisaanpak dient hierbij Activity Based Costing (ABC) waarna opbrengsten en kosten worden gealloceerd aan klanten. Dit maakt het mogelijk om diagrammen als de customer piramid en de whale curve op te stellen. CPA gaat echter verder: voordat assortimentsbeslissingen worden genomen, dient ook rekening te worden gehouden met de resterende constante kosten, effecten met betrekking tot crossselling, de levensfase van het product en de levensfase van klant. Bij vaststelling van deze effecten stuit men op aanzienlijke (meet)problemen. Dit maakt CPA tot een moeizame exercitie en men dient zich serieus af te vragen of de inspanning de moeite waard is. Het artikel besluit met de bespreking van enige contingentiefactoren die pleiten voor toepassing van CPA (wanneer wel?)

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