We use the customer profitability analysis (CPA) solution to help our clients to increase profit of their business operation.
A customer profitability analysis (CPA) is an evaluation process that focuses on assigning costs and revenues to segments of a company's customers. Instead of assigning revenues and costs to the actual products, units or departments of the business, customer profitability focus on the revenues and costs produced by clients.
Given that the operational performance of a business is the maximum, customer profitability analysis helps to the identification of factors which have a negative impact on the company's return. For example, allow for determining what percentage a given customer or group of customers actually make up of the overall client base, usually in terms of revenue generated. In actual practice, a customer profitability analysis looks at each segment of the process of creating and selling products/services to customers. This type of analysis produces interesting outputs for a business. Such as customer lifetime value, churn rate, retention of rate, discount rate/interest rate, retention cost.