Customer Profitability and Digitalization in the B2B Market: Systematic Literature Review

Abstract

This study presents a Systematic Literature Review (SLR) to synthesise and analyse the roles, contributions, challenges, and gaps in the literature at the intersection of Customer Profitability Analysis (CPA), digitalisation, and the Business-to-Business (B2B) market. Using an SLR approach, this study identifies and evaluates 30 scholarly articles that focus on CPA in B2B markets within the context of digitalization. The analysis is conducted thematically to identify models, non-risk challenges, and integration gaps. Digitalization has transformed B2B CPA from a purely historical, backward-looking model into a predictive, risk adjusted approach. The use of Machine Learning (ML) and data mining techniques (such as Boosting and Random Forest) has proven accurate in estimating customer churn probabilities and risk levels, which are then integrated into Customer Lifetime Value (CLV) calculations based on Risk Adjusted Revenue (RAR). The main non risk challenges include failures in integrating legacy systems (ERP, CRM, SCM), which hinder accurate tracing of cost to serve, as well as the need for managerial cultural change and the adoption of new hybrid technology roles.The key gap in the literature is the lack of empirical and technical studies that explicitly explain how digital technology platforms (hybrid actors such as chatbots or e marketplaces) automatically capture and allocate service costs to B2B customer accounts within traditional cost accounting models, particularly Activity Based Costing (ABC).