The 2020 Mid-Year Economic Update_long

Making Money with Small Customers: Balancing Margin & Cost

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

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Making Money with Small Customers
  • Measuring the Customer Experience
  • Cost-Effective Channel Alignment

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