Menu
Walker Information
Helping you put the customer at the heart of every decision.

Three P’s for measuring the value of customers

Consider the "Three P's" as a framework for considering the overall strategic value of a customer:

  • Payoff – A financial measure is absolutely an important element to include. Sales or revenue is the most obvious, but many companies move beyond this to measure net revenue, profitability, or contribution.
  • Potential – It is important to consider where the relationship with each customer account is headed. Key measures of potential might include the growth rate of the customer's own business, the degree of penetration across the customer's business units, and share of the customer's total spend.
  • Partnership – Business leaders realize the value of collaborative efforts with both their channel and direct customers. The channel helps us design better relationships and better products. The channel also share financial risk and will often accept shortfalls as an opportunity for improvement, rather than an excuse to leave.

About the Author

Walker Weekly

Walker is a consulting firm specializing in customer experience. Helping businesses for more than 75 years, Walker’s diverse team of consultants provides tailored, comprehensive solutions to help companies achieve their business objectives and grow shareholder value. Walker specializes in customer retention and growth, using predictive analytics and other innovative approaches. Walker works with some of the world’s most influential businesses as well as emerging organizations of all sizes. For more information, please visit www.walkerinfo.com.

Connect with Walker

Share your thoughts

Your email address will not be published. Required fields are marked *