Customer Profitability

The Challenge

The challenge for many sales and finance leaders today is understanding the revenue and cost drivers that drive your customer profitability, and using these to set the strategic framework for determining your ideal customers. 

For many organisations, trying to derive these insights into customer profitability can be a complex, time consuming and costly exercise, requiring lots of manual processes involving scarce and difficult to access technical/IT resources. 

Without the right processes and frameworks in place, it can quickly become an extremely resource intensive exercise that is difficult to automate and repeat on an ongoing basis. 

Our Learnings

Implementing Customer Profitability frameworks has highlighted a number of learnings:  

  • Will uncover manually intensive processes across the organisation;

  • With the right level of sponsorship, will significantly improve the accuracy of outputs;

  • Will challenge the quality of data across business systems;

  • Will enable a new set of KPI and Metrics to manage the performance of a business;

  • Will uncover significant discrepancies in how clients are being priced/charged;

  • Will highlight data governance and integrity issues (particularly those relating to core business systems);

  • Will facilitate key decisions relating to how clients should be managed commercially;

  • Will highlight the inter-dependencies between industries, clients, products and/or services.

Benefits

Apart from understanding which clients are your most profitable, there are other benefits to be gained from establishing a customer profitability framework:

  • Strategic alignment for the allocation of scarce organisational resources;

  • Segmenting your customers to determine how you will sell and service them;

  • Enabling your marketing team to target their marketing campaigns;

  • Optimising your operations according to your key customers;

How we can help!

Contact Revenite to organise a session to discuss how your organisation might implement a customer profitability framework using the latest data science tools, techniques and technologies.