Some facts on Customer Profitability from
Unity Solutions works with you to increase your Customer Profitability and competitive advantage by using information on and from your customers. Everything is based on: |
It is common to find: 5-15% of all customers generating 100% of net profit 50-60% of all customers being unprofitable Profitable customers accounting for 70-90% of sales Unprofitable customers accounting for 35-45% of activity costs Unprofitable customers consuming 25-55% of total resources 25-45% of customers
consuming 12-28% of resources More resources consumed by very small unprofitable customers than all profitable customers combined |
Summary of One Case Study |
Some other findings |
||
12% of All customers = |
65% of Sales | 1% of customers gave 35% of Net Profit | |
| 63% of Gross Profit | 5% of customers gave 69% of Net Profit | ||
| 104% of Net Profit | 59% of customers
were unprofitable and wiped out 60% of the Net Profit from the profitable customers |
||
23% of All customers = |
80% of Sales | ||
| 75% of Gross Profit | |||
| 114% of Net Profit | |||
64% of All customers were UNPROFITABLE |
|||
Click the top button to go through the Customer Value Programme in logical sequence.
25Box® is a registered trademark of Unity Solutions Ltd. Copyright 2002 Unity Solutions Ltd. All rights reserved. |
