customer profitability

customer profitability UK US noun [U]
the difference between the profit made from a customer and the costs involved in getting and dealing with the customer over a particular period: »

Customer profitability analysis gives an organization the essential information for choosing what to do, with whom, and how.


Financial and business terms. 2012.

Look at other dictionaries:

  • Customer profitability — (CP) is the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler, a profitable customer is a person, household or a company that overtime, yields a… …   Wikipedia

  • customer profitability — Mktg the degree to which a customer or segment of customers contributes toward organization profits. Customer profitability has been shown to be produced primarily by a small proportion of customers, perhaps 10% to 20%, who generate up to 80% of… …   The ultimate business dictionary

  • customer profitability — /ˌkʌstəmə ˌprɒfɪtə bɪlɪti/ noun the amount of profit generated by each individual customer. Usually a small percentage of customers generate the most profit …   Marketing dictionary in english

  • customer profitability analysis — CPA The analysis of profits by customer. In the past, management accounting reports focused exclusively on product profitability, but in recent years it has become clear that managers need to understand both product and customer profitability.… …   Accounting dictionary

  • customer profitability analysis — CPA The analysis of profits by customer. In the past, management accounting reports focused exclusively on product profitability, but in recent years it has become clear that managers need to understand both product and customer profitability.… …   Big dictionary of business and management

  • customer profitability analysis — Fin analysis of the revenue streams and service costs associated with specific customers or customer groups. Abbr. CPA …   The ultimate business dictionary

  • Customer Lifetime Ansatz — Customer Lifetime Value (CLV) ist allgemein der Deckungsbeitrag, den ein Kunde während seines gesamten „Kundenlebens“ realisiert, diskontiert auf den heutigen Tag. Es ist eine Kennzahl aus der Betriebswirtschaft. Neben historischen Umsätzen wird… …   Deutsch Wikipedia

  • Customer Lifetime Value — (CLV) ist allgemein der Deckungsbeitrag, den ein Kunde während seines gesamten „Kundenlebens“ realisiert, diskontiert auf den heutigen Tag. Es ist eine Kennzahl aus der Betriebswirtschaft. Neben historischen Umsätzen wird auch der zukünftig… …   Deutsch Wikipedia

  • Customer lifetime value — Contents 1 Definition of Customer Lifetime Value 2 Calculation in customer retention cases 3 Uses and Advantages of CLV 4 References …   Wikipedia

  • Customer Information File —   Systems consisting of data bases of customer and customer account information. The emphasis is on customer information and not on accounts. The objective of most CIF systems is to focus on information for marketing efforts and customer… …   International financial encyclopaedia

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