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Customer profitability
Author(s) -
Miller John A.
Publication year - 2008
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20404
Subject(s) - customer profitability , profitability index , customer equity , customer lifetime value , business , customer value , customer retention , valuation (finance) , customer advocacy , customer to customer , marketing , industrial organization , economics , finance , service quality , microeconomics , profit (economics) , service (business)
Customer profitability quantifies the “in‐the‐bank” profits of the customer/supplier relationship and reports what's already been earned. More important to many industries is customer valuation, the future value of the customer. This article explains how the two differ—and why it matters. © 2008 Wiley Periodicals, Inc.