Profitability
built on Loyalty

Type of Organization


    Profitability
  For organizations to drive increased (incremental) revenue from their existing customers, it is imperative they understand “who” they are and what do they contribute to the organization in terms of Profitability. If an organization identifies where each customer sits in a profitability analysis (comparing profit to volume) they will gain a better understanding of which customers are most important to them in both the short and long term.  
     
  Once an organization understands the profitability of each customer, they can then proceed to understanding which customers are Loyal (L), Satisfied (S) or Dissatisfied (D). This additional analysis is the key to being able to develop a strategy for the organization, based on priorities of profitability.  
     
  If the organization understands which customers are the most profitable AND which ones are Loyal, Satisfied and Dissatisfied, they can then formulate key strategies and initiatives around these key customers. This overlay of profitability with customer loyalty helps give the organization the prioritization it needs to develop specific strategies and goals around how they will serve their “best customers.” Without this combination, the organization can make decisions that are inaccurate and very costly to sales, operations and marketing. When profitability and customer loyalty are combined in the above fashion, you get a high degree of focus and execution on what is important to the organization. Organizations that create and deliver consistent and predictable customer experiences have a much stronger ability to predict customer behavior and the outcomes of the purchasing decision. This lowers customer risk.  
     
   

  

 

 

 

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