Ms. Jorgenson, the Marketing Vice President of Gardner, Inc. noticed in a recent meeting that while the company was doing very well, its marketing expenses had been increasing over the last couple of years. She started asking questions of her salespeople and others in the department to see if they had any clues as to what was happening. Mr. Haynes, one of her top salespeople, came to her a couple of days after she started asking questions with some information about two of his customers. "Look at these figures. These are some of our best customers in terms of sales but they have been demanding more and more from us in the way of customer services. There should be a way of analyzing the use of customer services by customers or customer classes to see where the problems are and what we can do about them. "
Required: Prepare a report for Ms. Jorgenson, explaining to her about customer profitability analysis in very general terms.

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The Answer of Ms. Jorgenson, the Marketing Vice President of Gardner, Inc. noticed in a recent meeting that while the company was doing very well, its marketing expenses had been increasing over the last couple of years. She started asking questions of her salespeople and others in the department to see if they had any clues as to what was happening. Mr. Haynes, one of her top salespeople, came to her a couple of days after she started asking questions with some information about two of his customers. "Look at these figures. These are some of our best customers in terms of sales but they have been demanding more and more from us in the way of customer services. There should be a way of analyzing the use of customer services by customers or customer classes to see where the problems are and what we can do about them. "
Required: Prepare a report for Ms. Jorgenson, explaining to her about customer profitability analysis in very general terms.

Ms Jorgenson, the Marketing Vice President of Gardner, Inc