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Existing CustomersView Template for: Existing Customers The purpose of this section is to focus on existing customers. List existing customers in descending order by revenue. This helps focus on those customers that are most important. If your business has the sophistication to list customers by profitability contribution to the firm, that would be even better. The number of customers that should be listed is a matter a style. In many cases it makes sense to list all customers because the listing is kept anyway and because the SBU document is the primary source for all vital information. In other cases it makes sense to keep the listing brief in order to focus on the most important relationships. For businesses with thousands of retail customers it would not make sense to list customers by name, but rather, to list them by customer type. The concept of cumulative total revenue for the top 20 customers is useful to give a picture of how important the largest customers are, and how vulnerable the business is to the loss of any one of them. Again, this concept is more enlightening if based on customer profitability. For those businesses which do not have a sense of customer profitability (or a sense of marginal and average costs for each product and service provided) then decision making is more difficult. |
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