Customer Profitability — Information just isn’t enough

Abstract

Customer relationship management demands that you understand which customers create profits and those that destroy it. However this is just not enough if you want stay in business in the long term. This paper explores how customer management solutions based on a scaleable data warehouse and a strategy to couple profitability measurements with predictive modeling can create sustained competitive advantage. Historic profitability measures just don’t measure profitability — financial accounting systems fail the test. You need something to replace them that can actually support the business and the business decisions that must be made.