1. Finance
  2. Customer & Market Economics

Customer Profitability Score

Score

Identifies and quantifies the profitability of individual customers. Allows companies to tailor their strategies for different customer segments based on profitability.

Formula

Typically a score derived from factors like revenue generated, costs associated, length of relationship, etc.

Example

If a company uses a scoring system from 1-10, a customer generating high revenue with low support costs might score a 9.