In today's business environment, profitability is a necessary condition for the existence of a firm and a means to more important ends. And customer profitability is the best foot forward in meeting the above needs of today's organization.

Business is full of mysteries. The right strategy of today may become the wrong one tomorrow. Companies in different industries have different strategies to meet their objectives. The idea here is that one strategy of a particular industry may not suit another industry. But in this fast moving and ever-changing world, the constant crux of the goal remains the same for all the organizations. The goal of achieving as much profitability as they can.

Profitability means-gain, advantage, improvement or that output which results from the employment of capital, which is usually expressed or interpreted in financial terms. CP is a customer-level variable, which refers to the revenues less the costs which one particular customer generates over a particular period of time. In simpler terms, CP is an equation of revenue minus cost of services over a given period of time, i.e. R-CS, criteria of calculating. CP differs from company to company. CP is not a new word to the business world. In the year 1954, Peter Drucker first coined this word stating that-"the true business of every company is to make and keep its customer". The above statement of Drucker clearly shows that CP is all about customer, which results in the form of company's relationship with its customers. A long-term positive relationship with the customers is a key to the stability of the company and at the same time it helps in gaining a competitive edge in today's increasingly dynamic business market and CP provides the companies exactly with that edge. This transformation in the business culture made businesses less "product-centric" and more "customer-centric". And so the need and demand of CP is high in today's business organizations. The general theory states that-a very strong relationship exists between customer satisfaction and a company's profitability and hence, it has become necessary for organizations to make sure that they are practicing CP.

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