By the use of customer profitability analysis, the business organization can become successful in determining the contribution made by individual customers and customer segment for making profits. In any specific base of customer, there is an involvement of certain differences in the generation of revenue by customers for the organization and at the cost incurred by the company for securing these types of revenues. It is identified as a good industrial practice of marketing for nurturing and building profit based relationships with each and every customer group . For having the ability of the same, a company should acknowledge how current relationships with the customer will be different in terms of profitability.
It is also crucial to acknowledge what potential must be offered by customer segments for future profitable relationships with the customers. CPA provides scopes for delivering this type of knowledge. The specific issues of implementation are based on the nature of industrial markets. These problems are regarding the attributes such as the utilization of personal sale and account management, repairing and maintenance services, indirect sale through the distributors, extensive bonus and discounting structures for distribution partners and customers .