Week 9. American Investment Management Services
Discussions What is your opinion of the process the firm followed to assess customer profitability? Assignments How would you use this information to improve your business?
Week 9. American Investment Management Services
Opinion of the process the firm followed to assess the customer profitability and its use to improve business.
As we can see the firm has used the process of dividing all the customers into segments and further into smaller groups. According to me, it leads them to identify correctly the unprofitable customers make the correct decision regarding them, and turn them into profitable ones. Thus, it helps in making profitability decisions as it identifies exactly where the unprofitable customers are and the reason behind the unprofitability as well, so that the management can take necessary steps to make it profitable.
According to me, this will be the best strategy regarding the assessment of customer profitability. Later the groups of customers can be divided into profitable groups and unprofitable groups so that the unprofitable ones can be easily identified and once the reasons behind unprofitability are identified the necessary steps can be taken to turn them into profitable ones. Afterward, they can be added into profitable groups once the reasons have been eradicated.
I will use this process to divide the customers into small groups and figure out the unprofitable ones easily. Then I will address the reasons behind the unprofitability and take corrective measures to turn the unprofitable customers into profitable ones. Thus the business can grow smoothly and the profitability will increase significantly which will lead to improvement of the business.
