Lynette Ryals 
Managing Customers Profitably [PDF ebook] 

This book is a response to a need in the market place in the
fast-growing field of customer profitability analysis and the
profitable management of customer relationships. It combines
innovative approaches to calculating the value of customers, with
the management strategies necessary to make and keep customers
profitable.

It includes easy-to-follow instructions on how to calculate
customer profitability, including worked examples (non-technical)
and discusses strategies and their applications for organizations
to manage customers profitably. Based on cases and feedback from
the KAM Club and other research, there will be many
business-to-business as well as business-to-consumer examples.

The book assumes some level of numeracy in its readership.

The contents include:

* Assessing product costs, costs to serve and how these can be
estimated, and how to deal with customer-specific overhead
costs.

* It discusses the uses and limitations of the use of customer
profitability analysis, and illustrates how to calculate customer
lifetime value using two methods, one with actual numbers and one
which estimates relative customer lifetime value.

* Provides an innovative approach to calculating the lifetime
value of a customer by taking risk into account.

* Demonstrates how to recognise and value the relationship
benefits of customers, such as word of mouth.

* Brings into discussion the idea that how customers are
managed, links to their profitability.

* Describes how financial portfolio analysis and theory apply to
marketing and how, their application to marketing relates to the
optimisation of marketing spend.

Table of Content

Foreword.

Acknowledgements.

Introduction.

Section One: How to Value Your Customers.

1. Latest thinking on valuing and managing customers.

2. Customer profitability analysis.

3. Calculating customer profitability.

4. How to calculate customer profitability for large customer
numbers.

5. Customer lifetime value.

6. Calculating customer lifetime value.

7. Calculating and using customer equity.

8. The relational value of a customer.

Section Two: How To Manage A Customer Portfolio.

9. Managing a customer portfolio using customer equity.

10. The customer portfolio using both supplier and customer
perspectives.

11. Risk.

12. Service-based segmentation.

Section Three: The strategic decisions that maximize the
value of your customers.

13. Selective customer acquisition and retention.

14. The role of pricing in creating or destroying value.

15. Increasing customer equity using value propositions.

Bibliography.

Index.

About the author

Lynette Ryals MA (Oxon) MBA Ph D FSIP Professor of Strategic
Sales and Account Management, Cranfield School of Management

Lynette has an MA from Oxford, an MBA from International
Management Centres (Europe) and a Ph D from Cranfield School of
Management, where she is Professor of Strategic Sales and Account
Management. She is a Registered representative of the London Stock
Exchange and is a Fellow of the Society of Investment
Professionals.

Currently, she is the Director of Cranfield’s Key Account
Management Best Practice research Club, Director of the Demand
Chain Management Community, and a member of the school of
Management’s governing Executive Board. She is the author of three
previous books and a series of highly-regarded academic and
managerial papers and reports. Her Ph D on the profitable management
of customer relationships resulted in a 270% performance
improvement for one of the participating organisations.