SR Limited deals in readymade garments and its clients majorly include medium and large outlets. There...
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SR Limited deals in readymade garments and its clients majorly include medium and large outlets. There are regular complaints from clients regarding delivery issues. As SR Limited understand the critical behaviour of clients and want to establish "Customer Profitability Analysis" (CPA) so that critical customers who are key factors can be recognized. SR Limited provide following information regarding its four major customers: Particulars No. of Units Sold Contribution per unit No. of purchase order No. of deliveries (Normal) Kilometre per delivery Order Processing Cost Product Handling Cost Transport Cost - A 36,000 36 100 3 100 B 48,000 45 200 4 50 12,000 Per Order 0.90 per unit 18 per Kilometre C 42,000 48 150 4 250 D 56,000 45 100 5 350 Required (a) EVALUATE the Customer Profitability by calculating Total Profit as well as Profit Per Unit from each customer for SR Limited and INTERPRET each customer. (4 + 4 = 8 Marks) (b) DEMONSTRATE three fundamental aspects of CRM to facilitate building relationship with profitable customer. (6 Marks) (c) ENUMERATE two benefits of Customer Profitability Analysis (CPA). (2 Marks) (d) DISCUSS the relevance of Customer Profitability Analysis in reference to Banking and Hotel sector. (4 Marks) SR Limited deals in readymade garments and its clients majorly include medium and large outlets. There are regular complaints from clients regarding delivery issues. As SR Limited understand the critical behaviour of clients and want to establish "Customer Profitability Analysis" (CPA) so that critical customers who are key factors can be recognized. SR Limited provide following information regarding its four major customers: Particulars No. of Units Sold Contribution per unit No. of purchase order No. of deliveries (Normal) Kilometre per delivery Order Processing Cost Product Handling Cost Transport Cost - A 36,000 36 100 3 100 B 48,000 45 200 4 50 12,000 Per Order 0.90 per unit 18 per Kilometre C 42,000 48 150 4 250 D 56,000 45 100 5 350 Required (a) EVALUATE the Customer Profitability by calculating Total Profit as well as Profit Per Unit from each customer for SR Limited and INTERPRET each customer. (4 + 4 = 8 Marks) (b) DEMONSTRATE three fundamental aspects of CRM to facilitate building relationship with profitable customer. (6 Marks) (c) ENUMERATE two benefits of Customer Profitability Analysis (CPA). (2 Marks) (d) DISCUSS the relevance of Customer Profitability Analysis in reference to Banking and Hotel sector. (4 Marks)
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