Exploring the Effects of Customer Portfolio Management
Exploring the Effects of Customer Portfolio Management

Summary/Abstract: Nowadays turbulent business conditions provoke organizations to develop unique competitive advantages through efficient use of the available limited resources. At the same time companies deal with increasingly informed customers, seeking high added value and better service at reasonable prices. In this context, the need for rethinking traditional marketing activities determines the interest in searching and designing tools, which are able to analyze, evaluate, develop and manage the relationships with the customers. Thus the customer portfolio management (CPM) concept gains popularity. The paper offers a systematic view of the multifaceted nature of customer portfolio management and its effects on the economic performance of the company. The effects are classified into four main areas: cost reduction; relationship improvement; risk optimization and revenue increase. A conceptual model, which can be used as a base for the creation of methodological instruments for measurement and assessment of CPM effects, is proposed.

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