How profitable are your customers?

All customers aren’t created equal. It’s in your company’s strategic interest to know how each one contributes to the bottom line. The simplest way to determine each customer’s profitability is to match cost data with purchase history. But even if you don’t track cost data, you can differentiate good from bad by reviewing customer purchase volume and average sale price. Also incorporate indirect costs, such as marketing, handling, and service or billing expenses, because they can have a big impact on a customer’s profitability. Contact us for help.