Client profitability is tracked in order to know about the analyzing customers and their spending habits. It can be used as a financial performance indicator.
Customer profitability analysis is a process of analyzing customers and their spending habits. It can be used as a financial performance indicator. It can be used to find out how profitable it is to keep each customer. Businesses can improve their decision-making. They can also improve overall business operations using this metric.
Customer profitability analysis involves the comparison of the revenue generated by a company. This data comes from its different types of customers. It includes the average customer costs incurred in generating that revenue. The goal here is to identify which customers are profitable for a business. It helps determine which ones are not. This is an important business strategy.
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