Customer growth and profitability metrics must be connected clearly to customer experience to gain executive and board support and to warrant the investment of people, time and financial resources. To make this case, spend the time to understand the different accounting methods throughout the company. Forge a partnership with finance to cobble together the customer accounting approaches. Learn the answers to these questions:
- How are customers valued?
- How are customers tracked?
- How are customers accounted for?
This process will likely be disjointed and will take real effort to tease out the information from throughout the organization. Do the work because a partnership with the operating leaders and CFO will provide four things:
1. Establishing a united approach for valuing customers.
2. Understanding how profitability grows through organic customer growth.
3. Aligning the silos to do the math on customer profitability.
4. Identifying the points in the customer lifecycle that grow or shrink customer profitability.
The company has to move past the classic quarterly sales goals, production goals or operational objectives as the only metric to define how the business is doing.
Read More:Track Revenue and Profitability by Customer Group Are You Driving Customer Profitability?
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