What is a customer profitability analysis?
Asked 4 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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