Elements of Customer Portfolio – Three-Dimensional Customer Classification Matrix:
Matrix positioning customers (or other partners) according to Relationship value, Net price and Cost to serve
Principle:
Classifies relationships based on value, net price and cost to serve
Issues:
Provide a mechanism for combining hard data (profitability of customers) with more judgemental data (relationship value)
Monitoring the positions of customers/relationships over time
Applications:
To analyse the value of relationship portfolio, to determine which relationships need developing and/or maintaining and which, if any, need to be broken
Source of Customer Portfolio – Three-Dimensional Customer Classification Matrix:
Zolkiewski and Turnbull (1999) Portfolios and Network Model
Relationship Portfolios – Past, Present and Future, Judy Zolkiewski and Peter Turnbull