Among those organizations that have established a foundation of customer value and/or customer profitability, Ventana Research asserts that such metrics should be dynamically maintained and used more often as the basis for cross-functional business initiatives. Those that have not built customer value metrics should do so. Regular assessment of enterprise and business unit P&L will drive new business initiatives, and, in a similar vein, changes in product profitability are often the basis for shifting organizational objectives. Clearly, customer profitability dynamics should drive strategies across the demand chain. We further recommend that value-based strategies best bring about performance improvement when account management processes are linked to sales management. Customer acquisition efforts and those aimed at retention are best treated as a single process continuum, defined to encompass all components of the customer-facing demand chain.
Customer Profitability is Not a Financial Metric
Demand chain perspective often accelerates resolution.
Sales Effectiveness And Customer Profitability
Using planning and analysis to optimize account coverage.
Customer Profitability Revisited
A strategic initiative for finance executives
The Customer Drives the Demand Chain
Customer intelligence is becoming a priority.
Jack Hafeli is VP & Research Director - Customer Intelligence & Demand Chain Performance at Ventana Research