How to Implement a Customer Profitability Management System

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How to Implement a Customer Profitability Management System

In our PACE Profitability Analytics eBook series, we have tackled many parts of the PACE framework.

This eBook looks at “How to Implement a Customer Profitability Management System."

Effectively measuring and managing customer profitability is crucial to organizational success which is why understanding and overcoming barriers to success is necessary.

These barriers include:

1?? Technical barriers that include IT related issues such as data quality and governance, and database accessibility

2?? Perception barriers regarding excess complexity and affordability

3?? Organizational behavior barriers that involve resistance to change, culture, and leadership.

In this eBook, we discuss how to overcome these three barriers, the steps involved in implementing a CPM system, and the challenges that may arise during the process.

Some of the topics covered include:

?? Implementation decision

?? Foundation basics (like defining customers, products and channels, and calculating customer profitability)

?? Technical infrastructure (including transaction data, selection of the database engines. etc.,)

?? Business algorithms (including customization possibilities, cost, documentation, and testing)

?? Profitability information (including sustainability and repeatability testing, and system risks)

?? Strategic integration (removing manual work, and increasing timeliness as much as possible)

?? Organizational barriers

?? Next Steps

This eBook contains a thorough discussion of considerations to think about when implementing.

We hope you like the eBook and find it helpful and, as always, we look forward to your feedback.

We would like to thank and recognize?Plante Moran?for sponsoring this eBook.

We are grateful to have sponsors so we can continue to research and write about topics that will help advance the finance profession.

Please read/download the eBook today.

Click here to download the eBook (free)?Click/hover on the cover image, click the square in the lower right-hand corner, then click the down arrow at the top.

Case Studies Related to this Topic

• Bank LTD
• Insure-IT
• Leaves Inc
• Mostlé SA

Podcasts and Webcasts Related to this Topic

• Revenue Management for Financial Professionals

Other eBooks Related to this Topic

• Customer Profitability: How to measure it and why it matters?
• Customer Profitability Management - Should you love them or leave them?

If you want to see more of PACE, please check out our?LinkedIn PACE Channel?,?website?,?Twitter account?, and Podcasts on?Spotify,?Google?,?Apple Podcasts?and?YouTube.?Also, check out more of our eBooks on:

• The Profitability Analytics Framework?
• Managerial Costing: Why it's important and how to do it??
• 6 Steps to Assessing and Improving Revenue Management Practices?
• Why Causality is Essential for Effective Performance Management Systems
• Customer Profitability: How to measure it and why it matters??
• Managing Customer Profitability - Should you love them or leave them???
• How to Better Manage Strategic Investment
• How to Better Manage Investment Costs
• Causal Based Budgeting: A Better Approach to FP&A

And please SAVE THE DATE for our Profits+ Virtual Conference. Registration will be available soon. Attendance is free for all members of PACE.

The Profitability Analytics Center of Excellence (PACE) is a?non-profit community of volunteer professionals?dedicated to helping organizations make better, more informed business decisions through the use of data analytics employing integrated, causal models.?Focusing exclusively on how to enable better managerial decision-making within organizations through the use of such models, PACE is the go-to source for people looking for independent and impartial (vendor and methodology neutral) information in this area. You will find many supporting articles, eBooks, blogs, and podcasts at?www.profitability-analytics.org?.?Consider becoming a member today. There is no cost.