Financial Advisory And Consulting

Customer and Product Profitability Analysis

While it is normally clear what revenue each product, segment and customer contributes to the top line, it is often not clear what costs each product, service, customer or segment demand. Also it is imperative that the cost attributable to a particular product, service, customer or segment is typically driven by the various factors such as supply chains, product mix, diversified Geographical markets. Many companies are spending significant time and resources to understand cost drivers so that better business decisions to rationalize the products, services, selection of critical distribution channels, improve product mix and customer relationship building activities based on the incomplete information.

GLOTACCYS with its highly qualified and experienced team provides efficient and timely solution to address this problem. Customer and Product Profitability analysis can help key personnel in an enterprise to:

  • Identify the most and least profitable products or services.
  • Identify and fix unprofitable customers.
  • Identify cross sell and up sell opportunities.
  • Map the customer buying patterns that can indicate issues with product, service, competitors or sales team.
  • Evolve the product mix to maximize profits in the medium and long term.
  • Isolate and remedy the causes of decreasing profit margins.
  • Rationalize products, customers, sales teams, markets, and distribution methods based on detailed activity based costs and net profit