How to Build a Profitable Customer Base

Vubiz Verified independent store

→

This online course teaches business owners and executives what makes a customer profitable and how to analyze this effectively. Traditionally, profitability analysis focused on pro ducts and services. But as companies shifted focus to customers, so did their analysis. Businesses worldwide discovered that some customer segments are less sensitive to price, require less effort, and contribute more to profits. Customer profitability analysis utilizes data to identify these groups and helps businesses adjust their strategies to improve profitability among less profitable customers, rather than simply dropping them. The first part introduces the concept of customer profitability analysis, explaining the link between customer service costs and profitability based on customer demand. The second part presents real-world examples, including a bank case study that utilized activity-based costing to analyze customer profitability, highlighting both the challenges and benefits, and prompting reflection on how your organization could benefit. Show more