Customer profitability analysis refers to the allocation of revenues and costs to customer segments,or individual customers to calculate the profitability of the segments or customers.

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Customer profitability analysis is the process of assigning revenue and cost data to individual customers or segments, in order to assess their profitability. This allows companies to identify which customers are generating the most profit, and to adjust their marketing and sales strategies accordingly.

Customer Profitability Analysis Refers to the Allocation of Revenues and Costs