Post on 11-Jan-2017
Gaining Competitive Advantage Through
Account Level ProfitabilitySwetha Kasthurirangan
Analytics ManagerWellsFargo
GAINING COMPETITIVE ADVANTAGE THROUGHACCOUNT LEVEL PROFITABILITY
Swetha KasthuriranganFinance & Analytics ConsultingWells Fargo Centre
2
HOW CAN YOU MEASURE THE VALUE OF YOURCUSTOMERS
Account Level Profitability
3
SOME CUSTOMERS ARE MORE IMPORTANTTHAN OTHERS…
4
Look, let me get back to you while I find out how important you are
Credit : Morris cartoons content
5
IDENTIFYING THE PRIVILEGED CUSTOMERS
6
COMPONENTS OF ALP
7
Revenue Items
Cost Items
Loss
HOW TO SCALE THE ALP Identify the low hanging
fruits in the costs Nebulous costs later Identify surrogates for costs
in some cases Involve the whole company Lowest granular method for
allocation Business analyst who
understands business,operations, and can numbercrunch logically
8
CHALLENGES IN CREATING ALP
There is no single customer profitability number– Anonymous
9
CURRENT APPLICATIONS OF ALP
Who do we target What do we give them How do we service them Who we do not want to be our customers
10
Q & A : THANK YOU
Don’t be seduced into thinking that what does not make a profit is without value – Arthur Miller
11
Image Credit : Cartoonstock.com
Community Focused
Volunteer Driven
Knowledge Share
Accelerated Learning
Collective Excellence
Distilled Knowledge
Shared, Non Conflicting Goals
Validation / Brainstorm platform
Mentor, Guide, Coach
Satisfied, Empowered Professional
Richer Industry and Academia
About Information Excellence Group
Progress Information Excellence
Towards an Enriched Profession, Business and Society
About Information Excellence Group
Reach us at:
blog: http://informationexcellence.wordpress.com/
linked in: http://www.linkedin.com/groups/Information-Excellence-3893869
Facebook: http://www.facebook.com/pages/Information-excellence-group/171892096247159
presentations: http://www.slideshare.net/informationexcellence
twitter: #infoexcel
email: informationexcellence@compegence.cominformationexcellencegroup@gmail.com
Have you enriched yourself by contributing to the community Knowledge Share..
Progress Information Excellence Towards an Enriched Profession, Business and Society
Progress Information Excellence Towards an Enriched Profession, Business and Society