Customer Profitability

Customer profitability (CP) is the difference between the revenues earned from and the costs associated with the customer relationship in a specified period.

According to Philip Kotler,"a profitable customer is a person, household or a company that overtime, yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling and servicing the customer"

Read more about Customer Profitability:  Uses, Challenges, Cautions, Other Sources

Famous quotes containing the word customer:

    The elements of success in this business do not differ from the elements of success in any other. Competition is keen and bitter. Advertising is as large an element as in any other business, and since the usual avenues of successful exploitation are closed to the profession, the adage that the best advertisement is a pleased customer is doubly true for this business.
    Madeleine [Blair], U.S. prostitute and “madam.” Madeleine, ch. 5 (1919)