Customer profitability analysis:
A)Always shows that the company with the highest total sales generates the highest net customer profit.
B)Always shows that the company with the lowest total sales generates the lowest net customer profit.
C)Produces the same results as a Pareto analysis.
D)Helps identify actions to improve customer profitability.

Question

Quizplus · Accepted Answer

Customer profitability analysis helps identify actions to improve customer profitability by identifying which customers generate the most net profit and where there may be opportunities to increase revenue or decrease costs. It does not necessarily correlate with total sales or follow the principles of a Pareto analysis.

Customer Profitability Analysis