Customer rating calculation

I was looking at automatic customer rating. Is the Customer rating mean of the four columns
Credit Rating
Loyalty Rating
Operational Rating
Profitability Rating

No. The overall customer rating in Tuhund is not a simple mean of the four columns. It is calculated using a weighted average. The weight for Credit Rating, Loyalty Rating, Operational Rating and Profitability Rating is not fixed. It is different for each organisation because priorities differ across business models.

It also depends on the current phase of the business. When a company is new it may value loyalty and new customer acquisition more. In a mature phase profitability and operational performance might carry more weight. During financial stress credit rating becomes a top factor. Tuhund allows organisations to adjust these weights so the customer rating always matches the strategic focus of the business.

Here are examples of how weights can change based on business phase. The numbers are only samples to explain the idea.

1. Startup or early growth phase

Focus: customer base expansion and relationships

• Credit Rating: 15%

• Loyalty Rating: 45%

• Operational Rating: 20%

• Profitability Rating: 20%

Reason: winning and keeping customers matters more than margins at this stage.

2. Stable or mature phase

Focus: balanced and consistent performance

• Credit Rating: 25%

• Loyalty Rating: 25%

• Operational Rating: 25%

• Profitability Rating: 25%

Reason: business wants harmony across all four areas without pushing one too hard.

3. Expansion or aggressive growth phase

Focus: operational scale and customer service

• Credit Rating: 20%

• Loyalty Rating: 35%

• Operational Rating: 30%

• Profitability Rating: 15%

Reason: customer satisfaction and delivery capability decide success.

4. Financial stress or cash flow concern

Focus: cash recovery and payment discipline

• Credit Rating: 50%

• Loyalty Rating: 15%

• Operational Rating: 20%

• Profitability Rating: 15%

Reason: credit discipline becomes more important than volume.

5. High competition market shift

Focus: retaining loyal and profitable customers

• Credit Rating: 20%

• Loyalty Rating: 40%

• Operational Rating: 15%

• Profitability Rating: 25%

Reason: competition requires extra attention to loyal and high value customers.

Here is a practical guideline table for different industries. These are recommended samples that organisations can adjust.

Suggested weight ranges by industry

Benefits of this approach

• Every organisation can define weights according to its own strategy

• It supports changes over time as business priorities evolve

• Customer rating remains meaningful, not generic

• Decision making improves: credit control, sales planning, risk management