Saturday, November 3, 2007

Firms should weigh customer segments based on profitability model

Firms should weigh customer segments based on profitability model.
Marketing News , 7/15/2007, Vol. 41 Issue 12, p16-17
This article examines market segmentation and the need to identify which customers yield the highest profitability. Service costs are difficult to quantify and to tie to specific services delivered. Service companies traditionally don't understand which customers cost more to serve than others. Developing a customer profitability analysis is a complex process and some advice is offered including key components of a customer profitability model.


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