Topic Gateway Series Customer profitability analysis Customer profitability analysis Topic Gateway Series No. 55 1 Prepared by Jasmin Harvey and Technical Information Service January 2009 Topic Gateway Series Customer profitability analysis About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition‚ a brief overview and a fuller explanation of practical application. Finally they
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in determining the cost of serving customers and as a basis for evaluating the profitabilty of a specific customer or group of customers. Why is this important? Most managers agree that 80% of their profits come from the top 20% of their customers and most important‚ the bottom 20% of their customers are unprofitable. For example‚ to compete with Walmart‚Best Buy works hard to attract profitable customers and equally hard to discourage the unprofitable customers which those that are price shopping
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CUSTOMER PROFITABILITY ANALYSIS Customer profitability analysis (CPA) can be defined as a method used to compare the costs of all the activities used to support a customer or a customer group with the revenue generated by that customer or customer group. It is the analysis of the revenue and costs that relates to the customers which can be determined by considering the similarities and differences in customers’ buying behaviours and customer preferences. From the definition‚ it shows three features
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A customer profitability analysis is an evaluation process that focuses on assigning costs and revenues to segments of the customer base‚ instead of assigning revenues and costs to the actual products‚ or the units or departments that compose the corporate structure of the producer. Approaching profitability from this angle can sometimes provide valuable insights into how each step of the process of designing‚ manufacturing‚ and ultimately selling a good or service incurs cost and generates revenue
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CELL2CELL: THE CHURN GAME It was a cold and cloudy morning at Cell2Cell Headquarters as Sarah A. Stanford headed to her cubicle holding a cup of cappuccino in one hand and a bulky database manual in the other. Although a veteran in the database marketing field with a doctorate in Statistics‚ her new assignment was more challenging than she had imagined. Churn Management in the wireless industry was really complicated‚ but Sarah was excited to be working on perhaps the most important marketing
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Analysis – Current Marketing Situation The domestic telecommunication industry offers a broad range of services through four primary product segments: radio‚ television‚ voice communications‚ and broadband services‚ the two largest being voice communications and broadband services (Industry). These services are offered to businesses and personal consumers‚ and are the industry’s primary user segments. Companies in the telecommunication industry are the primary means by which communication is provided
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A STUDY ON THE TELECOMMUNICATION INDUSTRY OF INDIA GROUP 6ANUBHAV BANSAL ANKIT JAIN SAMREEN SABA SHWETA CHANRA VINAY BAHETI CONTENTS Executive summary Introduction Factors Facilitating Growth of the Sector Features of Telecom Industry Current Market Scenario Industry structure PEST analysis Conduct and practices Porters five force model Conclusion & Future of the Telecom Industry in India EXECUTIVE SUMMARY Indian telecom industry is a 165 years old
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AN ASSIGNMENT ON The Telecommunications Industry in India -- Michael Porter’s Five Forces Analysis Submitted To: - Prof. AVIJAN DUTTA Date Of Submission:- 4th feb‚2009 NAME ROLL NO. Submitted By:- Ashish Vatshayayan 03 Rajesh chaudhary 28 Anurag Yadav
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those times‚ only the privileged have phones. Many would apply for a phone line‚ and application process can take up to 5 years‚ only to find out they have been rejected. In the 80s‚ the market became more accommodating and new telephone companies made their industry debut. New lines began operating and franchises were allowed nationwide. In the early 90s‚ about 2 of every 10 Filipino families have landline phones‚ with most of the lines located in Metro Manila. Less than 1 out of 10 owns a mobile phone
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Contents 1. Introduction………………………………………………………………….. 1 2. Researches on churn management……………………………….…...............1 3. Customer value and churn analysis……………………………….…..............2 4. Churn analysis in china telecom industry..........................................................3 5. Recommendations..............................................................................................4 6. Conclusion............................................................................
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