Based On Activity-based Costing, Customer Profitability Analysis

Competition among enterprises is becoming more and more fierce, especially in the maturing Chemical Industry of Daily Use, for the high degree of homogeneity of their products. Marketing has gradually been an important part of business.However, not every dollar of the revenue will bring the same profit for the enterprises, and the ultimate aim of marketing is to retain profitable customers, so it is necessary for the enterprises to conduct Customer Profitability Analysis, and make targeted marketing strategies for every customer according to their contributions to the enterprises, so as to make full use of the marketing resources.Although the importance of Customer Profitability Analysis has been proved for many times, currently the amount of theories and practices of it are still relatively small, so it is very necessary and urgent to strengthen and refine the study of Customer Profitability Analysis, and then make it into effective use.This paper is divided into five main sections:The first chapter was introduction. The background of the research and the study situation of Customer Profitability Analysis at home and abroad was analysised in this part, and also the significance and innovative points of the paper was raised.Chapter II is about the theoretical study of Customer Profitability Analysis. In this section, the writer first points out the defects of traditional cost system of the enterprises, then raises activity-based cost to overcome those shortcomings, and on this basis, gives full theory of Customer Profitability Analysis. At last, the writer proposes a series of the evaluation indicators of Customer Profitability Analysis, and explains the use of these indicators to classify customers.The third chapter is about characteristics of Chemical Industry of Daily Use. This chapter firstly introduces the background, the characteristics of the channel of customers, and the current control situation of marketing cost, then emphasizes the necessity for the chemical enterprises to carry out Customer Profitability Analysis, finally focuses on the analysis of the characteristics of customer cost of the chemical enterprises.The fourth chapter is a case of Customer Profitability Analysis of cases. The case is used to explain the specific application of customer profitability analysis theory in the chemical enterprises, and put forward targeted marketing strategies for them.Chapter five is the prospect and management recommendations, this chapter presents a direction of future research of Customer Profitability Analysis, and makes some management recommendations according to the targeted direction.