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Whenever we want to learn about any topic, the first and foremost thing is to know what the topic means. So here we need to know what customer profitability actually is. The profit that any company derives by providing products or services to their customer or group of customers through a specific time period is termed as customer profitability. A clear idea of the topic is necessary that can be done with fully allocated customer profitability homework help.
Purpose of accounting customer profitability
It is very important for any organization to know their customer profitability. The knowledge helps in taking various decisions about the business.
- The firm can decide who their probable customers are and can find ways to obtain them.
- The loyal customers are also identified and required measures to retain them can be taken.
- Certain behavioral activities from customers can make or break the value of a brand, this can also be identified and if there is any difficulty that can be cleared with fully allocated customer profitability assignment help.
- Making a choice of customers to whom up-selling can be done is possible.
- Deciding on which channels to follow so that distribution becomes easier.
- To choose those customers whom the firm does not want to cater to.
- Deciding the discounts that can be given on selective products.
- Making budgets to carry out advertisement programs.
- In setting standards of services that can be provided to customers.
Thus customer profitability can form the basis of decision making in various prospects, clarity of the topic can be derived with fully allocated customer profitability homework help.
When should a firm measure its customer profitability?
Customer profitability is such an aspect of business that there is no specific time to measure it. All firms function as their products or services get sold, and the people to whom they are sold are the customers. Thus the best time to start measuring customer profitability is as soon as possible rather immediately.
There are firms who measure this when their business is not at its peak but this could b a wrong decision because if the calculation is done before the fall, then it could be easier to prevent the same. So it is always advisable that companies account their customer profitability at least twice in a financial year to keep their business on the go.
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