Managing Customer Profitability
Electrical distributors are aware that they lose money on a large number of their customers. The real problem is that by having identified this, distributors do not have the affordable tools for measuring their customers' profitability or directed action plans for improving it.
In an effort to move away from talking about the problem toward taking action, Dr. Al Bates of Profit Planning Group, created a measurement system with procedures for managing and improving customer profitability.
- Easy-to-use Excel-based tool to measure customer profitability.
- Step-by-step measurement tool user's manual.
- Report on the nature of customer profitability relationships, key profit drivers, suggestions and scenarios for managing and improving profitability on target accounts.
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Research projects are generously funded by the NAED Education and Research Foundation's Channel Advantage Partnership.
Published in 2006.