Metrics & KPIsProfit per customer
Definition
A strategic KPI that focuses the business on maximising profit for each customer. This KPI is improved by altering the distribution of customers towards ones that re-spend frequently on high profit services, and by either cross-selling or dropping low-profit customers. If all services are of equal GP, the focus is on getting existing customers to spend more. If some services are of higher profit than others, shifting customers onto different services can work. Also, reducing costs tha
Formula
[profit] divided by [number of customers]
Tags
customer, expense, profit, Cost, distribution