Customer Margin ABC Analysis is a statistical technique used by businesses to analyze customer profitability. By categorizing customers into three groups—A, B, and C—it’s easier to determine how much each group contributes to total profit. The A Group consists of high-value customers who produce the most revenue for the business; B Group customers contribute an average amount of profit; and the C Group typically generates a small share of the overall profit. Through this analysis, you can identify the individual customers and client segments that are most valuable to your business and design strategies that boost profits and reduce costs.