Customer Profitability Analysis and Improvement

Hans-Gerlach Woudboer

September 2010

We Improve Profitability

Customer Profitability

Analysis and Improvement

RapidBusinessModeling Hans-Gerlach

Woudboer +49 160 530 1809 2

Customer Profitability Improvement

We build multi-dimensional enterprise models reflecting your company and all of its important dimensions and details

With these models we can simulate your business allowing you to make your decisions based on facts and not guesses

Conservatively we improve your bottom-line by 3- 6% of revenue

Woudboer +49 160 530 1809 3

Do You Know Your Customers True

Profitability?

Does your company have any unprofitable customers?

How much money do you leave on the table with your

customers?

What profit does each of your customer add or destroy

to your companies profit?

How much profit do you make or lose with activities

and services performed for your customers?

We can help you to answer all of those questions

Woudboer +49 160 530 1809 4

How an Enterprise Recognizes their true

Profitability Potentials

Customer Profitability Analysis often shows:

10-20 % of all customers make a profit between

200-300 % of IBIT

Hence: there are customers which dramatically destroy

your profits

Woudboer +49 160 530 1809 5

Customer WhaleCurve

Woudboer +49 160 530 1809 6

Customer WhaleCurve

Woudboer +49 160 530 1809 7

Customer WhaleCurve green-blue cut point

This example shows: 9 % of all customers make a profit of 203 % of IBIT

Woudboer +49 160 530 1809 8

Customer WhaleCurve Customer0236

Woudboer +49 160 530 1809 9

Product WhaleCurve Customer0236

Product profitability of Customer0236

Shows 3-dimensional profile of customers

Woudboer +49 160 530 1809 10

Product WhaleCurve

Woudboer +49 160 530 1809 11

Product WhaleCurve

Woudboer +49 160 530 1809 12

Potentializer Potential show best route for profitability improvements

Potentials go beyond the red line regime of the WhaleCurve

Woudboer +49 160 530 1809 13

Product view of potentials

Woudboer +49 160 530 1809 14

Profit Potential Amount vs Volume

Woudboer +49 160 530 1809 15

UnitProfit vs Volume

Woudboer +49 160 530 1809 16

UnitCosts vs Volume

Woudboer +49 160 530 1809 17

Price vs Volume

Woudboer +49 160 530 1809 18

From GL to Products, Lines, Customer

Woudboer +49 160 530 1809 19

From GL to Whale Curve

Woudboer +49 160 530 1809 20

Woudboer +49 160 530 1809 21

Enterprise CLV Performance Overview after Simulation

WhaleCurve 2008-2012

Woudboer +49 160 530 1809 22

Potentializer

Potentials show best

route for improvements

Go beyond red part of

WhaleCurve

Based on Gap-Analysis

Woudboer +49 160 530 1809 23

Potentializer

HealthcareFacilitiesAG

Woudboer +49 160 530 1809 24

Performance Management Suite

Enterprise Intelligent

solution for your business

Tailor-made & dedicated to

your needs

The result of your multi-

dimensional enterprise

Dynamic performance

details

Woudboer +49 160 530 1809 25

Woudboer +49 160 530 1809 26

Performance Management Suite

Woudboer +49 160 530 1809 27

PricingSuite

Woudboer +49 160 530 1809 28

Workshop leads to substantial

Multi-Dimensional Enterprise Model

One-day workshop: We can develop from scratch at your site a substantial

model of your business in order to demonstrate the capabilities and your potentials

A detailed Multi-Dimensional Enterprise Model

allowing Management to simulate future Customer Profitability Improvement

Can be built based on Enterprise data within weeks

Woudboer +49 160 530 1809 29

Passionate about Customer-Profitability-

Improvement by using our state of the art

RapidBusinessModeling tool

In a consulting for 10 years - dedicated to

customer profitability improvement based

on ABC/ABM

27 year with ExxonMobil in various

technical and managerial positions within

manufacturing, business and marketing

ExxonChemical President award winner

for an enterprise re-engineering and cost

reduction project of 30%

Chemical Engineer, earned his Master

degree at the Aachen University of

Technology

Woudboer +49 160 530 1809 30

References

A Medical Care Company

Woudboer +49 160 530 1809 31

Contact

RapidBusinessModeling

Plittersdorfer Str 49

53173 Bonn

Hans@RapidBusinessModeling.com

www. RapidBusinessModeling.com

Fon +49 160 530 1809

Fax +49 228 286 4304

Customer Profitability Analysis and Improvement

Business

Transcript of Customer Profitability Analysis and Improvement

ESSAY CUSTOMER PROFITABILITY ANALYSIS OF …

Customer, ProduCt, and Channel Profitability analysishosteddocs.ittoolbox.com/...productchannelprofitabilityanalysis... · Customer, ProduCt, and Channel Profitability analysis The

Customer Profitability Management

6 Customer Profitability

Customer profitability analysis - ICAEW

US Deloittereview Customer Profitability Jul09

Measuring and Managing Customer Profitability

ABC and Customer Profitability Analysis

Customer Experience Management - Subex · Customer Experience Management: Driving Loyalty & Profitability Customer Experience Management: Driving Loyalty & Profitability ... such

Calculating and Reporting Customer Profitability

Customer and Product Profitability at Banks

CUSTOMER PROFITABILITY ANALYSIS: SPECIFICATION OF ... · Customer Profitability Analysis: specification of indicators and improvement of procedures for data collection 8 Figure 2

Customer Profitability Analysis

Customer Profitability Analysis Case examples and ...

Customer Profitability Improvement

Customer Profitability Analysis, Sales Performance ... · Customer Profitability Analysis, Sales Performance Evaluation, ... Examples: Irwin/McGraw-Hill ... Revenue Budget Variance

COST ALLOCATION, CUSTOMER-PROFITABILITY

Vision 2014: Profitability Driven Customer Retention

Experiences in managing customer profitability from Nectar · Experiences in managing customer profitability from Nectar. ... • Customer Loyalty Management • Category Management

Understanding Customer Level Profitability …apps.olin.wustl.edu/workingpapers/pdf/2003-09-001.pdfUnderstanding Customer Level Profitability Implications of Satisfaction Programs