Customer Profitability Analysis (original) (raw)
Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g. grouped by number of transactions, revenues, average transaction size, time since starting business with the customer, distribution channels, etc.).
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dbo:abstract | Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g. grouped by number of transactions, revenues, average transaction size, time since starting business with the customer, distribution channels, etc.). CPA is a "retrospective" method, which means it analyses past events of different customers, in order to calculate customer profitability for each customer. Equally, research suggests that that credit score does not necessarily impact the lenders' profitability. (en) |
dbo:thumbnail | wiki-commons:Special:FilePath/Whale_curve_-_cumulative_customer_profitability.png?width=300 |
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dbo:wikiPageWikiLink | dbr:Robert_S._Kaplan dbr:Customer_lifetime_value dbr:Indirect_costs dbr:Overhead_(business) dbr:Activity-based_costing dbr:Pareto_principle dbr:Direct_costs dbr:Revenue dbr:Cost_accounting dbc:Accounting dbr:Operating_income dbr:File:4_boxes_-_Strategy_alignment_and_Customer_Profitability.png dbr:File:Customer_Classification_Matrix.png dbr:File:Whale_curve_-_cumulative_customer_profitability.png |
dbp:wikiPageUsesTemplate | dbt:Cn dbt:Orphan |
dct:subject | dbc:Accounting |
rdfs:comment | Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g. grouped by number of transactions, revenues, average transaction size, time since starting business with the customer, distribution channels, etc.). (en) |
rdfs:label | Customer Profitability Analysis (en) |
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foaf:depiction | wiki-commons:Special:FilePath/4_boxes_-_Strategy_alignment_and_Customer_Profitability.png wiki-commons:Special:FilePath/Customer_Classification_Matrix.png wiki-commons:Special:FilePath/Whale_curve_-_cumulative_customer_profitability.png |
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is foaf:primaryTopic of | wikipedia-en:Customer_Profitability_Analysis |