Track Revenue and Profitability by Customer Group


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Customer metrics propel the organization into understanding the customer end-game. They supply leaders with a platform to stand behind and reinforce.

Getting to the classification of revenue and profitability by customer group is not a trivial project. The key is to come up with labels and categories for these groups that are simple yet meaningful.

You need to understand the movement of customers from one profitability group to another so you can strategically lead the customer agenda. Your goal should be driving efforts that cause your costliest customer groups to decline and those most profitable to grow.

If you are not demanding that the business be tracked this way and if you do not ask for accountability around these metrics in the regular language of meetings, it won’t happen. Getting this data aligned to achieve a regular pattern of accountability around customer profitability patterns will take some time, but stay the course. It will optimize your ability to manage customers as an asset of your business.

Employees need to understand the impact their actions have in moving the customer profitability numbers up or down. Customer metrics need to be talked about, and they need to become part of how you define the success or challenges with your brand.

Read More: Guerilla Metrics: Managing Customers as Assets 

Republished with author's permission from original post.


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