Could some of your company's best customers in terms of sales revenue actually be unprofitable? As shocking as that might sound, the answer is yes. In this OnDemand Webinar, you will learn how to calculate the annual profitability of a customer, and how to calculate and estimate the lifetime value of a customer. You will discover how to convert many unprofitable customers into profitable customers and when to fire customers who are not profitable. You will learn strategies for increasing the lifetime value of profitable customers. You will learn how increasing the lifetime value of customers can lead to larger profits and higher shareholder value.
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Determining the Annual Profitability of a Customer
- Use Activity-Based Costing to Assign Costs to Customers
- Subtract Costs From Revenues
- Compare Revenues and Profits
- The Best Customers in Terms of Sales Revenue Might Not Be Profitable
Increasing the Annual Profitability of a Customer
- Increase the Frequency of Purchases
- Increase the Average Purchase Amount
- Decrease the Non-Value-Added Costs of Serving a Customer
Calculate the Lifetime Value of a Customer
- Present Value of All Future Cash Flows Multiplied by the Retention Rate
- Include Cash Flows From Referrals
- Subtract Acquisition Cost and Retention Cost
Strategies for Increasing the Lifetime Value of a Customer
- Increase the Retention Rate
- Implement an Active Referral and Leads Program
- Add More Products (Or Services) to Sell to Customers
Increase Shareholder Value
- Customers Are Assets
- Increasing the Lifetime Value of Customers Increases the Value of a Company's Assets
- If Liabilities Remain Constant, Shareholder Value Increases
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on November 8, 2012.
Call 1-866-352-9540 for further credit information.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty

Alan D. Campbell
- Has served on the faculties of several universities and as a self-employed consultant
- Practice emphasizes all aspects of tax research and tax planning for tax professionals and businesses
- Conducts regular seminars and workshops on tax topics for individuals and businesses
- Author of several publications related to the areas of tax planning in numerous journals, including The Tax Adviser, Practical Tax Strategies, and the Journal of Accountancy; Four of his articles relate directly to the self-employment tax
- Co-author of the book Tax Strategies for the Self-Employed published by CCH Incorporated
- American Institute of Certified Public Accountants and Institute of Management Accountants
- B.S. degree in accounting, Arkansas State University; M.B.A. degree in business administration, Arkansas State University; Ph.D. degree in accounting, University of North Texas
- Can be contacted at 936-553-4364 or [email protected]
More Program Information
Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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