Measuring and Managing Customer Profitability

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You may have interest in this article I authored titled “Measuring and Managing Customer Profitability” for the Strategic Finance magazine published by the Institute of Management Accountants. Its message is that customers are the source of financial value to increase shareholder and owners’ value. But today customers view suppliers’ products and service-lines as commodities. Therefore suppliers must provide differentiated services to different customer segments. The sales volume of high demanding customers is not proportional to their profit level because they cause extra expenses from their suppliers. (I wrote the article related to my part time role as the IMA Executive in Residence now in my 4th year term. The has 85,000 members in 140 countries.) Here is the link to directly download the article as a pdf file:

“Measuring and Managing Customer Profitability”; IMA Strategic Finance; February 2015.


I have also recorded two courses on this topic with Michael Management Corporation:

My first course is MMC – IC0541: Analytics Based Enterprise Performance Management

Second course MMC – IC0593: Measuring and Managing Customer Profitability

Third course MMC – IC0599: Driver-based Planning, Budgeting and Forecasting,-balanced-scorecard,-driver-based-budgeting-rolling-financial-forecasts

Author: Gary Cokins

Gary Cokins (Cornell University BS IE/OR, 1971; Northwestern University Kellogg MBA 1974) is an internationally recognized expert, speaker, and author in enterprise and corporate performance management (EPM/CPM) systems. He is the founder of Analytics-Based Performance Management LLC He began his career in industry with a Fortune 100 company in CFO and operations roles. Then 15 years in consulting with Deloitte, KPMG, and EDS (now part of HP). From 1997 until 2013 Gary was a Principal Consultant with SAS, a business analytics software vendor. He is now a strategic advisor for ERPFixers. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics.