customer profitability

"Would you like a new way of looking at your customer profitability that would let you make better strategic decisions in the current recession and dramatically improve your bottom line?"

If you answered YES, you'll need to:

  • Know what impact the recession will have on your customers and business profits.
  • Identify those customers who will move from being profitable to unprofitable during the recession cycle.
  • Devise a strategy for each customer group to minimise the impact of the downturn.

To get back into shape, businesses need to take back control. gg management consulting (gg) can show you the way. gg uses models to provide unique access to analytic problem-solving techniques that support strategic development and change management in complex corporate environments.

Imagine you could stop doing business with more than 60% of your customers while staying as profitable as you are now.

What would you do with the operational cost savings?

CASE STUDY: One major soft drinks distributor with 6,800 customers found that their top 19 accounts delivered the same net total profit as the whole business.

Imagine you could identify the 30% of customers that are probably losing you money. What would you do with them? Increase prices and therefore profits? Or send them to your competitor, immediately improving your profitability and lowering your competitor's – a double win for you?

CASE STUDY: The same soft drinks distributor with 6,800 customers discovered that only 2,500 of its accounts were profit-making, but they delivered 2.5 times more net total profit than the whole business when loss-making accounts were retained.

Imagine knowing exactly how much time, effort and money you need to put in to attract more profitable customers as well as keeping your existing profitable customers.

CASE STUDY: A major foods company that operated four separate organisations to support different brand identities reduced its distribution costs by 30% by integrating its logistics operations without confusing brand values.

The above results were made possible by one of the features of gg's Silurian* Customer Profitability Model that cumulatively ranks customer accounts from most profitable to least profitable and produces a Hook-curve (see diagram below). The extraordinary perspective the Hook-curve offers has allowed companies to make the kinds of decisions that lead to outstanding results.

hookcurvehires.jpg

 An example illustrating how loss-making customers consume profits and
      the point at which current net profit can be made with fewer customer accounts.

gcan show you how the Silurian Customer Profitability Model can give you insights into the types of strategic decisions you need to make to increase your profitability.

*The term 'Silurian' refers to the geologic period when the distinct bedrock that supports the earth's surface was laid down. It is used by ggmanagement consulting to characterise its models, which provide a solid foundation on which client organisations can build their businesses.


Ask for a free consultation. If our models are likely to provide positive results for you and we are engaged, we will guarantee you will increase your profits by far more than you invest in the programme.


Contact us now on 0845 6435 838 or email: contact@ggmanagementconsulting.com


We look forward to discussing your needs.