Customer-Profitability-Analysis

The basic purpose of any business entity is to make profit for its owners and maximize these profits with all possible means. The profit maximization includes the efforts to increase the number of customers that buy the product and services of the organization. For business entities and management every single customer is important. They cannot afford to lose even a single customer because of his high net worth. For the purpose of calculating the profitability and potential value of each customer the businesses use various tools and formulas. One such very popular measure of customer value is the customer profitability analysis template.