how relationships can help customer profitability

1. Level of Analysis
E-1 E-2 E-3 E-4 E-5
R-1
R-2
R-3
R-4
R-5
EPISODES
CUST.
RELN.
EPISODE CONFIGURATION MATRIX

2. Analysing Customer Bases

Distribution of profitability

3. Analysing Customer Bases

Stobachoff Index

p=(n-nu)/n

P = profitability proportion

N = total number of customer

Nu = total number of unprofitable customer

4. Customer Base Portfolio Analysis

5. Designing Customer Relationship

Increasing relationship value

Decreasing relationship costs
Relationship cost as a function of complexity and divergence
Decreasing relationship cost through customer participation
Using Access bariers to decrease relationship cost

Increasing Relationship longevity

6. Relationship cost as a function of
complexity and divergence

7. Relationship cost as a function of
complexity and divergence