Incorporating customer profitability analysis into quality management systems

Purpose: The specific purpose of this article is to describe customer profitability analysis and evaluate its compatibility with quality management systems. Besides, its more general objective consists in shedding further light on the links between management accounting and quality management, which is still an emerging topic. Design/methodology/approach: The first part of the document presents a theoretical description of the disciplines and tools that are relevant to the study. Afterward, an explanation of the way in which customer profitability analysis is operationalized in practice is provided. Subsequently, a framework for the incorporation of customer profitability analysis into a quality management system is introduced. The final section includes some recommendations for future research. Findings: Through the analysis of the benefits of the incorporation of customer profitability analysis into an ISO 9000 model, the study provides further support to the premise that the joint consideration of management accounting techniques and quality management tools is beneficial to organizations. Originality/value: The article combines two disciplines closely related in practice but seldom concurrently addressed in the literature.