customer

Tag: customer

Customer Profitability

See also: Identifying Profitable Customers Segmenting Customers for Profit 3 Benefits of an Analysis of Customer Profitability Customer Profitability Definition The customer profitability definition is “the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship

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Increasing Pricing on Products

Recently, Netflix – streaming service giant – increased their pricing on two of their products by more than 10%. At first, media and customers displayed anger and backlash. But after the pricing increase, many customers remained at the increase was approximately a $1 difference. Plus, you have to factor in that many people are “cutting

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Demystifying the 80/20 Rule

Whether you are working with a client, putting together a reporting package, networking with potential theory, or closing the books, there’s a rule you can apply to make your life easier. This rule is probably one that you’re very familiar with – regardless of whether you practice it. When you are completing a job, there

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7 Ways Your Company Can Be More Like Amazon

As we transition into Quarter 3 of 2017, companies are already planning for what 2018 is going to look like. Over the past year, we have seen a lot of change in the business landscape. Amazon acquired Whole Foods and dramatically sliced prices. Apple released not just one, but two iPhones in the past month.

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If It’s Always On Sale, Is It Ever On Sale?

When you walk into a shopping mall, what do you see? I see sale signs everywhere! How could a company ever make money if its products or services are always on sale? 50% off, buy 1 get 1 free, 70%… It never ends. Have you wondered if it’s always on sale, is it ever on sale? Marketing

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3 Benefits of an Analysis of Customer Profitability

Over time weeds grow in any garden. In the same way, unprofitable customers work their way into your company. To avoid the high costs of low profit customers, you should perform an annual analysis of customer profitability. Therefore, weed your garden of customers who are sapping your profits and cash flow. Although there are many

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Trade Credit

See Also: 5 Cs of Credit Credit Sales Standard Chart of Accounts Income Statement Free Cash Flow Trade Credit Definition The trade credit definition refers to postponing payment for goods or services received. Another trade credit definition is buying goods on credit, or extending credit to customers. It is also receiving goods now and paying for

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Sales Order

See Also: Credit Sales Daily Sales Outstanding (DSO) How to compensate sales staff Economic Order Quantity (EOQ) Economic Income Sales Order Definition A sales order definition is an internal document which lists buyer and sales quantity for a given purchase. It is also a valuable document for operations. A sales order form generally indicates that no

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Prime Lending Rate

See Also: Interest Expense Interest Rate Swaps LIBOR Federal Funds Rate Market Rate Prime Lending Rate Definition Prime rate, or prime lending rate, is the interest rate commercial banks charge on loans to preferred borrowers. The prime interest rate is lower than the interest rates charged to less creditworthy borrowers. Commercial banks can charge lower

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Define Payment Terms

See Also: Terms of Sale Net 30 Credit Terms Cost Recovery 2/10 net 30 Down Payment Define Payment Terms Define payment terms as the terms required for payment on a product, are a function of the service offering of a vendor. These terms are an extension of how a vendor wants to treat a customer.

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Logistics Chain

See Also: Supply Chain and Logistics Value Chain Porter’s Five Forces of Competition Indemnity Clause Commercial Agents Logistics Chain Definition The logistics chain, defined as the path of goods and information from a creator to an end user, enables any business to turn product into sales. Involving either tangible or intangible goods or services, it

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