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As companies shift from a product-centric focus to a customer-centric focus, a myth that almost all current customers are profitable needs to be replaced with
As companies shift from a product-centric focus to a customer-centric focus, a myth that almost all current customers are profitable needs to be replaced with the truth. Some high- demanding customers may indeed be unprofitable! Here's the basic problem. With accounting's traditional product gross profit margin reporting, managers can't see the more important and relevant "bottom half" of the total income statement picture-all the profit margin layers that exist and should be reported from customer-related MSDA expenses. Based on your new knowledge on measuring customer profitability, what other considerations should a company look at when measuring customer profitability? Don't forget to leave a question at the end of your discussion for your peers and for your peers to respond at least once to your
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