Performance Management Shared Interest Group

Discover how measuring and managing customer profitability is essential for driving shareholder value and sustainable growth. This webinar will guide you through the shift from product-centric to customer-centric strategies, showing how organisations can use cost accounting and business analytics to identify, retain, and grow their most profitable customers. Learn how to efficiently implement customer profitability measurement systems, leverage financial data for smarter marketing and sales strategies, and apply concepts like customer lifetime value to maximise long-term returns. Attendees will gain actionable insights for targeting the most attractive customer segments and making informed decisions that enhance overall profitability.

Learning Objectives:

1. Why customers are the source of shareholder wealth creation.
2. Why as differentiation from product advantages is reduced or neutralized due to commoditization, then service level differentiation matters and the customer relationship grows in importance as a competitive advantage.
3. How to shift the mindset from growing sales to growing profitable sales and to view customers as investments like in a stock portfolio to seek higher ROIs – return on customers (ROC).
4. Why the marketing and sales functions need accounting data to better formulate customer account strategies including compensation incentives.
5. How to measure and manage product, channel, and customer profitability.
6. (This objective is optional to add to the presentation.) How measuring forward-looking customer lifetime value (CLV) differs from calculating historical customer / consumer profitability for B2C industries.

Field of Study: Performance Management