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Essay text:
Managers should analyze their customers to determine those that are the most profitable, and most important to keep satisfied, as well as those customers that may not be contributing to the profit of the business. Once these customers are determined, a manager can develop strategies to increase the profitability of the less profitable customers while keeping those highly profitable customers happy. This is accomplished through customer profitability analysis.
What is Customer Profitability Analysis?
Determining which customers generate the largest profits and are consequently better for the company’s bottom line is critical...
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