Success in sharing customers, retaining customers, obtaining new customers and satisfying customers does not guarantee that enterprises will gain profits from customers. Therefore, it is of great significance to carry out customer profitability analysis, invest limited resources in profitable customers, and determine which customers should be retained by the enterprise, for effectively maintaining customers and enhancing the profitability of the enterprise. Customer profitability The evaluation can be described by single customer profitability and overall customer profitability index. Interest rate of a single customer=net profit of a single customer/total cost of a single customer
Overall customer profit index=(net profit of all customers/cost of all customers) ÷ maximum profit rate of a single customer
Among them, the overall customer profitability index describes the average level of the enterprise's existing customer profitability and the ratio of the largest single customer profitability. If the overall customer vitality index is not different from the maximum single customer profitability, it indicates that the enterprise's marketing efforts are concentrated on those customers who can make the most profits. On the contrary, it indicates that the enterprise's marketing efforts are too scattered. [1]
