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