Predicting profitability of an order by measuring average margin is ineffective. Averages are susceptible to outliers and rarely represent the true value of any individual measure within the set. In this article, the authors examine flaws in conventional thinking about margin and provide practical ways to better manage small orders.
This article includes:
Common misconceptions about how to measure customer profitability
Better ways to measure the impact of small orders
Tips for how to improve profit from small customers
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles: