Multiple choice

Customer profitability analysis is a/an

  1. exercise done by bank before lending to a customer

  2. exercise before opening a new branch

  3. access to the profitability of customer's business

  4. Only (1) and (2)

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Customer profitability (CP) is the profit that 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 in a specified period.