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Customer Profitability Analysis Topic Gateway

Topic Gateway Series Customer Profitability Analysis 1 Prepared by Jasmin Harvey and Technical Information Service January 2009 Customer Profitability Analysis Topic Gateway Series No. 55 2 Customer Profitability Analysis Topic Gateway Series About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application.

profitability) generate more than 120% of an organisation’s profits. Meanwhile, the bottom 20% generate losses equalling more than 100% of profits. CPA can be used to work out which customers comprise the top 20% (and the bottom 2%). …

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