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Calculating and Reporting Customer Profitability - …

APQC. Calculating and Reporting Customer Profitability Final Report A Consortium Benchmarking Study Jointly Conducted By: And Subject Matter Expertise Provided By: John A. Miller Director APQC. TABLE OF CONTENTS. PAGE. EXECUTIVE SUMMARY I. CHAPTER 1: BACKGROUND AND OVERVIEW OF Customer Profitability 16. INITIATIVES AT PARTICIPANT ORGANIZATIONS. CHAPTER 2: Customer SEGMENTATION 26. CHAPTER 3: Calculating Customer Profitability 38. CHAPTER 4: Reporting Customer Profitability 55. CHAPTER 5: PUTTING Customer Profitability INTO ACTION 64. APQC. FIGURES. PAGE. : ORGANIZATION OF FINAL REPORT 3. : APQC'S FOUR-PHASED BENCHMARKING METHODOLOGY 4. : INDUSTRIES REPRESENTED 7. : UNIT OF PARTICIPATION 8. : PRIMARY CUSTOMERS 9. : ESTIMATED ANNUAL GROSS REVENUES FOR MOST RECENT FY 10. : ESTIMATED TOTAL NUMBER OF EMPLOYEES FOR MOST RECENT FY 11.

Analyzing the profitability of the customer portfolio and understanding each customer and customer segment is fundamental for the management of the business and is a critical part of being customer

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