Articles / Recommended Reading / Relationship

The Value of Customer Relationships

The Value of Customer Relationships
Lea A. Strickland, MBA CMA CFM CBM GMC

F.O.C.U.S. Resources
Copyright ©2010 F.O.C.U.S. Resource, Inc.

What is the true value measure of a customer? Is it a single deal or the potential over the life of the customer? How should the profit on an individual sale be calculated? Why should the sales force be asked to not only understand but also be accountable for the real profit of each sale? When the sales force has little or no control over the price company policies, or cost structures of the organization, should profitability be one of their metrics? Does the organization need to know the profitability of each customer and of each deal? Should businesses only do profit-positive deals? When would it make sense to do break-even sales or even lose money to make a sale?

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