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"There is nobody standing there with the answer to customer profitability," said Andrew Layton, a principal with Diamond Cluster International, a consulting firm specializing in the telecommunications industry.
And unlike many Internet analysts, who fell into the habit in 1998 and 1999 of valuing Internet companies by page views, projected lifetime customer profitability, and other dubious metrics, Ms. Becker stuck to the tried and true method of valuing Yahoo based on its price-earnings ratio and earnings growth rate.
A focus on customer profitability has several advantages.
The customer approach focuses on customer value or customer profitability in contrast to share, satisfaction or product profitability.
EPM evaluates customer profitability and lets a company test scenarios for acquiring new customers and retaining existing customers.
That is why all conversations about "burn" quickly become conversations about customer profitability.
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But without the computer and server businesses to feed it customers, profitability at HP's printing and service arms would suffer.
The data she collected showed that the most effective teams — the criteria were customer satisfaction, profitability and internal review — were the ones who had more positive meetings.
Creating new revenue streams and providing substantial cost containment for customers, the OilPaq automatically increases the customer's profitability.
As we focus on serving customers better, profitability is also improving and rebalancing towards a more sustainable mix of business contributions.
As Garrod and Chadwick (1996) claimed that although firms have been adopting a number of green management tools, customers and profitability were identified as the most decisive factors affecting business strategies.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com