Friday, May 12, 2006

BEYOND CUSTOMER RESEARCH AND DEVELOPMENT

True customer-centric innovation includes two additional efforts: One of the most important first steps a company should take, even before embarking on customer research and development, is to measure customer profitability. Discern which customers are profitable and which aren’t, by fully allocating all invested capital and expenses to individual customers. Do this analysis regularly, and make customer return on invested capital a central metric for business performance. This helps firms get a solid idea of who their customers are and where and why they make a profit or don’t….

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Source :- IIPM Editorial, 2006

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