Key customer profitability

This measure calculates the year-to-year percentage change in a business entity's profitability from key customers (i.e. the top 20 percent of customers in terms of currency volume of sales). It is part of a set of Process Efficiency measures that help companies optimize the performance of their "develop marketing strategy" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
100813
Total Sample Size:
293 All Companies
Performers:
25th Median 75th
- 8.0% -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are percent.

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Percentage of profitability change for the top 20 percent of customers (i.e. key customers)

Key Terms

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Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (7.4)

  • 3.2.1 - Define offering and customer value proposition (11168)
    • 3.2.1.1 - Define offering and positioning (11169)
    • 3.2.1.2 - Develop value proposition including brand positioning for target segments (11170)
    • 3.2.1.3 - Validate value proposition with target segments (11171)
    • 3.2.1.4 - Develop new branding (11172)
  • 3.2.2 - Define pricing strategy (10123)
    • 3.2.2.1 - Conduct pricing analysis (13169)
    • 3.2.2.2 - Establish guidelines for applying pricing and discounting of products/services (10124)
    • 3.2.2.3 - Establish pricing targets (19999)
    • 3.2.2.4 - Approve pricing strategies/policies and targets (10125)
  • 3.2.3 - Define and manage channel strategy (20000)
    • 3.2.3.1 - Determine channels to be supported (20001)
    • 3.2.3.2 - Establish channel objectives (20002)
    • 3.2.3.3 - Determine channel role and fit with target segments (10127)
    • 3.2.3.4 - Select channels for target segments (10128)
    • 3.2.3.5 - Identify required channel capabilities (20003)
    • 3.2.3.6 - Evaluate channel attributes and potential partners (10126)
    • 3.2.3.7 - Orchestrate seamless customer experience across supported channels (20004)
      • 3.2.3.7.1 - Define omni-channel strategy (16590)
      • 3.2.3.7.2 - Define omni-channel requirements (16591)
      • 3.2.3.7.3 - Develop omni-channel policies and procedures (16592)
    • 3.2.3.8 - Develop and manage execution roadmap (20005)
  • 3.2.4 - Analyze and manage channel performance (20006)
    • 3.2.4.1 - Establish channel-specific measures and targets (16573)
    • 3.2.4.2 - Monitor and report performance (16574)
    • 3.2.4.3 - Monitor and report events influencing factors (16575)
    • 3.2.4.4 - Analyze channel performance (16500)
    • 3.2.4.5 - Develop plan for channel improvements (16501)
  • 3.2.5 - Develop marketing communication strategy (16848)
    • 3.2.5.1 - Develop customer communication calendar (16849)
    • 3.2.5.2 - Define public relations (PR) strategy (16850)
    • 3.2.5.3 - Define direct marketing strategy (16851)
    • 3.2.5.4 - Define internal marketing communication strategy (16852)
    • 3.2.5.5 - Identify new media for marketing communication (16853)
    • 3.2.5.6 - Define new media communication strategy (16854)
    • 3.2.5.7 - Define point of sale (POS) communication strategy (16855)
    • 3.2.5.8 - Define communication guidelines and mechanisms (18627)
  • 3.2.6 - Design and manage customer loyalty program (18924)
    • 3.2.6.1 - Define customer loyalty program (20007)
    • 3.2.6.2 - Acquire members to customer loyalty program (18925)
    • 3.2.6.3 - Build engagement and relationship with members (18926)
    • 3.2.6.4 - Monitor customer loyalty program benefits to the enterprise and the customer (16633)
    • 3.2.6.5 - Optimize loyalty program value to both the enterprise and the customer (18927)