Mungo Dunnett Associates: Management and Marketing Consultancy

Customer Profitability

Key Benefits

The scale of the organisational benefits is such that this analytical process is usually the single most cost-effective exercise a company can undertake

Identifying those key customers who are responsible for the bulk of the company’s profit, or who have the potential to do so, allows companies to allocate their resource into those areas where it will create the largest return on investment.

Companies typically see that cost cutting has a direct relationship with the bottom line, but are suspicious of the link between revenue generation and the bottom line. Identifying profit enables companies to focus on revenue generation in those areas where this is the most likely to transfer straight to the bottom line also. Where resources and budgets are tight, this is of enormous value.