Customer Profitability

Customer Profitability is an indicator of how much profit a business is generating from individual customers. Customer profitability is basically a measure of the net dollar contribution made by individual customers to an organisation.

 

This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.

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