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These profitability measures can provide signals such as satisfaction, retention, and growth in customer relationships that are valued when these relationships contribute to higher profits (Kaplan, 2005, August 8). Customer profitability metrics are very effective too. What if you have an important customer that is unprofitable? One thing that can be done is by first looking internally which would help in improving internal processes at a lower-cost-to-serve.
We have talked about a balanced scorecard measuring success and customer profitability. The balanced scorecard can also aid in measuring performance...
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