Abstract: The paper examined the lifetime customer profitability analysis system used by a major multinational Australian retail bank (bank A) using case study research approach. The current system limits the bank to use effectively customer profitability information to support its marketing strategy which the paper suggests to be based on market segmentation, extensive use of activity based costing (ABC) and calculating customer relationship revenues and relationship costs.
A hypothesized LCPAM model was developed after reviewing the existing literature and the model was revised based on the comments from Bank A. The revised model has contributed to the literature with the discovery of some new drivers of revenues and costs. The revised model is compared with a regional State Bank in Australia (bank B) and it is found that there are some similarities between the two banks, but there are also differences with respect to LCPAM between bank A and Bank B due to differences in location, strategy, and the use of technology.
Introduction: A significant development in the current management accounting literature traces the evolution of customer profitability analysis (CPA)[i] by using relationship revenue (RR) and relationship cost (RC). Relationship marketing, which is based on market segmentation, is using accounting concepts of revenue and cost amalgamating marketing and management accounting. ‘Customers come first’ is the present slogan and the recent increasingly competitive environment, customer service is growing strategically important element in the battle of both volume and margin. As a result, a sophisticated analysis of all relationship revenue and relationship costs in the customer accounting profitability analysis literature that have received scant consideration, is urgently called for. Click here to read more…
- powered by SMF board of elections
- powered by SMF opening a beauty supply store
- Marketing the eco-shack
- powered by SMF can you get top store sales performance for home improvement center
- powered by phpBB telephone hearing aid
- case study market segmentation
- Segmentation study in the retail market
- segmentation case
- segmentations used by eco-shack marketing group
- Powered by Article Dashboard meadows regional medical center