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The focus on customer relationship management has become central to all organizations. Companies have increasingly recognized the significant costs related to the loss of customers and are trying to better understand, measure, manage, and improve customer retention. Further, these organizations are examining how to measure and improve long term customer lifetime value.
This strategic Management Accounting Guideline (MAG) examines new tools and techniques for measuring and managing customer profitability, retention, and lifetime value. It includes recent examples in both for profit and not for profit organizations and also demonstrates how these analyses must be customized to the business model of the organization. This guideline will assist financial professionals and other members of the senior management team to better analyze customer profitability and develop approaches to improve customer profitability, retention and lifetime value.
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