Customer relationship management provides the structure for how the relationships with customers will be developed and maintained.  Management identifies key customers and customer groups to be targeted as part of the firm's business mission.  The goal is to segment customers based on their value over time and increase customer loyalty by providing customized products and services.  Cross-functional customer teams tailor Product and Service Agreements (PSA) to meet the needs of key accounts and for segments of other customers.  The PSAs specify levels of performance.  The teams work with key customers to improve processes and eliminate demand variability and non-value-added activities.  Performance reports are designed to measure the profitability of individual customers as well as the financial impact on the customer.

cf. Douglas M. Lambert and Terrance L. Pohlen, "Supply Chain Metrics," The International Journal of Logistics Management, Vol. 12, No. 1, (2001), pp. 1-19.