Measuring and Managing Customer Profitability


Measuring and Managing Customer Profitability

Today's customers view suppliers' products and service lines as commodities. We often find that the sales volume of high demanding customers is not proportional to their profit level because they cause extra expenses from you the supplier. In this course, you will learn why measuring customer profitability is increasingly important, how to calculate it, and what actions will increase customer profits to a supplier.

In this course you will learn:

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Course Goal

  • Understand how activity-based costing calculates product/channel/customer costs
  • Learn what actions can increase the profitability of customers to a supplier
  • Understand how rapid prototyping methods quickly implement a costing system
  • Learn the basics for properly allocating direct and indirect expenses
  • Understand how to properly project future expenses/costs for budgeting/rolling financial forecasts
  • Identify obstacles that slow the adoption rate of progressive accounting


  • Consultants
  • Executives and Managers
  • IT/Business analysts
  • Project Managers

Lesson Plan

Lesson Description
1 Introduction to the course material
Eras and Issues in Managerial Accounting
2 Understand the Evolution of Costing Maturity
Activity-Based Costing Basics
3 Understanding the ABC Cost Assignment Network
Implementing with ABC Rapid Prototyping
4 The How and Why of Rapid Prototyping
Calculating Channel and Customer Profitability
5 Why Customer-related costs matter
Applying Analytics
6 Understanding Customer Analytics
Historical vs. Predictive Costing
7 Understanding Costing Impacts
Adoption Rate Barriers
8 Barriers to success and how to overcome them



Gary Cokins

4.5 Average Rating

4 Reviews

56 Students

3 Courses

Gary Cokins

Cary, NC, USA

Analytics-Based Performance Management LLC provides advisory services to organizations, consulting firms,software vendors with their challenges to get started, implement,get leverage from enterprisecorporate performance management EPM / CPM methods such as activity-based costing ABC, customer profitabilityvalue analysis, analytics, rolling financial forecasts, strategy maps, balanced scorecards KPIs, dashboards PIs,risk management.

More Courses by Gary Cokins:
Driver-based Planning, Forecasting and Budgeting

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Course ID: IC0599

Analytics-Based Enterprise Performance Management

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Course ID: IC0541

Student Feedback


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Level: Intermediate
Duration: 1.50
Type:  Instructor-led
Delivery: Online, instructor-led
Category: SAP Financials

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Thanks for your excellent service.
-Alfredo  B.
Manager, Analytics + Information Management

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