A system for assessing and improving individual customer profitability for a profit-making organization, comprising: a central database; means for collecting and identifying data elements relevant to customer profitability and quality from a plurality of sources, and inputting data into the central database; means for performing segmentation of customers to form a reasonable number of distinct groups of customers; means for building a mathematical model; and means for calculating the relative profitability/quality values of the customers in said organization, obtaining and maintaining for the organization a set of optimal marketing strategies to match the customer's needs.
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