Preview

Customer Profitability Analysis: Weymouth Case

Satisfactory Essays
Open Document
Open Document
161 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Customer Profitability Analysis: Weymouth Case
Customer profitability analysis provides managers with the information that can be used to determine whether customer should be emphasized or not. In part- b second table, shown analysis that Weymouth has a low cost and Brookfield is the high cost to serve customers. This is because Weymouth required more sales orders, order taking process, more manager visits, normal and rushed deliveries than the Brookfield and Summerton. While, Weymouth has lowest cost this company is not profitable for the Methven firm, for the reason that is frequent order placement, 14 times in a quarter, low volume of orders, high number of rushed deliveries and numerous manager visits to the customer. Whereas, Brookfield place eight purchase orders in a quarter
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Math 533 Part a
    • 1063 Words
    • 5 Pages

    Math 533 Part a

    AJ Davis department store has asked to take a look at a sample of customers (sample size: 50) in order to more efficiently generate sales and also appeal to their more profitable segment. In order to better understand their customers a statistical analysis and interpretation must be performed. AJ Davis is hoping to achieve insight on how to improve their department store operations and strengthen their customer loyalty. We have taken both quantifiable and qualitative information and have performed descriptive and inferential statistics on the data collected. We do have to disclaim that these are only from a select few from the customer base and does not represent the entire population. Therefore, the interpretations based on the sample group need to be kept in perspective and must not assume complete representation of all customers. After the collection of information from their sample set we have been able to perform statistical analysis and the results are reported below.…

    • 1063 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Exploratory Data Analysis: AJ Davis Department Stores
    • 1005 Words
    • 5 Pages

    Exploratory Data Analysis: AJ Davis Department Stores

    customers who are essential to their future success as a company. A sample of fifty…

    • 1005 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Week 10 Assignment

    • 1474 Words
    • 5 Pages

    Week 10 Assignment

    Especially for You Jewelers is a small jewelry company in a college town. Over the last couple of years, it has experienced a tremendous increase in its business. However, its financial performance has not kept pace with its growth. The current system, which is partly manual and partly automated, doesn’t track accounts receivables sufficiently, and the company is finding it difficult to determine the reasons why the receivables are so high. The company runs frequent specials to attract customers but has no idea whether these efforts are profitable or if the benefit—if there is one—comes from associated sales. Especially for You Jewelers wants to increase repeat sales to its existing customers; thus, it needs to develop a customer database. It also wants to install a new direct sales and accounting system to help solve the outlined problems.…

    • 1474 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Customer Life Time Value Model for Syphone
    • 1150 Words
    • 5 Pages

    Customer Life Time Value Model for Syphone

    What is the lifetime value of a typical customer in each of the four segments, in current dollar values? Compare these figures to the “Gross margin” figures in the original spreadsheet. What can you learn from this comparison?…

    • 1150 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Evaluating Retail Stores
    • 828 Words
    • 4 Pages

    Evaluating Retail Stores

    The retail industry is extremely competitive particularly during the current economic conditions when customers have limited spending power (Bloomberg, 2009). Therefore, it is crucial that the business owner assess all of the factors which determine the profitability of a store. Since the financial figures are unavailable for all of the different outlets, the success of the store will be assessed using the same physical factors which can be observed; location, client flow, employee cost, pricing, inventory levels, marketing strategy and customer service. To evaluate what makes a store’s performance good, two successful and two unsuccessful stores will be looked at and the same criteria will be used to compare them.…

    • 828 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    KElloggs Marketing Plan
    • 488 Words
    • 5 Pages

    KElloggs Marketing Plan

    Brief description of product to be marketed and associated goals, such as sales figures and strategic goals.…

    • 488 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Makeup Buisness Proposal
    • 683 Words
    • 3 Pages

    Makeup Buisness Proposal

    The key long term business objective is to acquire new customers. Customer acquisition is considered to be the critical activity and I am seeking to grow the number of customers. I understand that customer growth could be at the expense of profitability, and that there is a cost associated with customer acquisition.…

    • 683 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Olay
    • 392 Words
    • 2 Pages

    Olay

    There are many ways to determine a customer’s value. One of the most accepted from is using a metric called customer lifetime value (CLV). CLV estimates how much a profit customer will contribute over his/her “lifetime”. By comparing CLVs among customers (or more often, among customer segments), we get a good idea of which customers are valuable and which are not.…

    • 392 Words
    • 2 Pages
    Good Essays
    Read More
  • Best Essays

    Xiameter Case Study
    • 2384 Words
    • 10 Pages

    Xiameter Case Study

    Customers are spread worldwide in more than 80 countries within 6 concentrated industries, serving 25 000 customers with more than 7 500 products. Industries include from healthcare to automobiles and household products to electronics. (Xiameter Case…

    • 2384 Words
    • 10 Pages
    Best Essays
    Read More
  • Good Essays

    What Are the Key Factors for the Corporate Competitive Success.Docx
    • 544 Words
    • 3 Pages

    What Are the Key Factors for the Corporate Competitive Success.Docx

    Businesses achieve success because they bring products and services to the marketplace that precisely and completely address customers’ current needs, wants or problems. The company must provide these solutions at a price that the customer views as reasonable given the value of the benefits provided. Part of planning is identifying the top customer needs at the present. You must also determine whether the company is capable of meeting these needs or successfully solving the customer’s problem.…

    • 544 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Managing Customer Value
    • 1016 Words
    • 5 Pages

    Managing Customer Value

    In today’s world, the competition is fierce and shareholders demand high return on investment. Thus, there is a need to maximize profitability. Increasing revenues while minimizing costs are ways to boost profits. The article “Managing Customer Value” suggests that customers might be the key to improve profits.…

    • 1016 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Indian Oil
    • 2147 Words
    • 9 Pages

    Indian Oil

    INFERENCE – Customers give highest preference and importance to quality and correct quantity which is followed by allied facilities. Maximum customers have given next most preference to services, accessibility, ambience and brand value.…

    • 2147 Words
    • 9 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Sales Management Analysis
    • 1159 Words
    • 5 Pages

    Sales Management Analysis

    |Customer analysis |This aspect represents the key success factor in assessing the business and setting the future goals |…

    • 1159 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Customer Profitability Analysis
    • 3421 Words
    • 14 Pages

    Customer Profitability Analysis

    Customer profitability analysis (CPA) can be defined as a method used to compare the costs of all the activities used to support a customer or a customer group with the revenue generated by that customer or customer group. It is the analysis of the revenue and costs that relates to the customers which can be determined by considering the similarities and differences in customers’ buying behaviours and customer preferences.…

    • 3421 Words
    • 14 Pages
    Good Essays
    Read More
  • Good Essays

    A Study on Customer Relationship Management (Crm) in Selected Commercial Banks in Tamilnadu
    • 638 Words
    • 3 Pages

    A Study on Customer Relationship Management (Crm) in Selected Commercial Banks in Tamilnadu

    This aim of a business concern is to get profits. This concern works for a business having a long-term approach towards satisfying customer needs. Customer retention is the purpose of their business. The trend in marketing towards building relationships with customers continues to grow and marketers have become increasingly interested in retaining customers over the long run. Building a life-long relationship with the customers is the mantra for the development of any business. A strong relationship will create a bond between the business and its customers. The business concern should understand and satisfy the changing needs of customers. The customer has a special task in the organization, and a great interest in the efficient functioning of the organization. They are the important stakeholders in any business and they are the ends of the business. So the success of any business concern depends on building a life-long relationship with its customers. The Father of our Nation, Shri Mahatma Gandhi said, “A customer is the most important person in our business”. Relationship Marketing is also thrives based on valuing the customers. An organization needs to establish two types of values pertaining to each of its customers, namely, current value and potential value. The most effective way to value customers is to calculate their life-time value, that is , the amount they will be worth to the organization over the entire course of relationship with them. In other words, revenue will be lost if the customer is lost.…

    • 638 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics