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What is a customer profitability analysis?

Asked 3 years ago

So I understand that one would need to determine how profitable each customer is, but what does the analysis even look like?

Moses Travis

Wednesday, February 16, 2022

A Customer Profitability Analysis (CPA) is a method that helps businesses know the overall profit a customer generates. A customer is profitable if the cost of customer retention is lower than the revenue he generates. The customers' costs include acquisition costs, selling, serving, fulfillment, and other operational costs,





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