- Customer profitability analysis has been an elusive goal for companies with millions, thousands or even hundreds of customers. These firms have implemented average-based cost allocation, OLAP and rate-based activity based costing, but have found the results to be insufficient to make meaningful decisions, inaccurate and expensive to maintain.
Acorn Systems delivers the most accurate customer profitability analysis at the lowest total cost of ownership. Acorn solves for customer profitability by accurately driving revenue, direct costs and indirect costs to every individual customer and segment based on the unique transactions of those customers and the services that those customer consume. Acorn does not use averages or rates that have been the source of inaccuracy and expense with traditional activity based costing. Rather, Acorn's innovative Consumption Driven Activity Based Costing, endorsed by Dr. Robert S. Kaplan, the father of activity based costing, provides for accurate, sustainable profitability analysis of hundreds or millions of customers.
Customer profitability solution
- • Identifies the profitability of every individual customer or segment and their profit drivers
- • Empowers managers with drill down information to determine the processes that are driving customer
profits
- • Delivers executive level reporting to understand the profitability of customer segments in order to drive
marketing, sales, channel and customer retention decisions
- • Delivers income statement and cost driver reports for individual customers to support customer
negotiations on terms such as such as number of deliveries, minimum order sizes, returns, payment
terms and buying a more profitable product.
-
Related Resources
- Customer Profitability Measurement and Management
- Dr. Robert S. Kaplan and V. G. Narayanan, Harvard Business School
- This whitepaper examines how companies can substantially increase
profits by precisely measuring customer profitability and analyzing
customer-specific profit information to identify and grow their
most profitable customers, implement business changes that increase
the profit contribution of their average-performing customers, and
improve the profit of the worst-performing segments.
- »
Read Whitepaper
- A Balanced Scorecard Approach to Measure Customer Profitability
- By Robert S. Kaplan, Harvard Business School Working Knowledge Article
- Customer profitability metrics provide a link, otherwise missing, between customer success and
improved financial performance. In this article, professor and Balanced Scorecard guru Robert S. Kaplan introduces BSC Customer Profitability Metrics. From Balanced Scorecard Report.
- »
Read Whitepaper
- Apply Customer Value Analytics to Boost Your Stock Price
- James Singer, Stern Stewart and Richard Drobner, Acorn Systems
- Learn how creating an information infrastructure that supports the
timely and continuous analysis of customer value can have a dramatic impact on your organizations bottom line.
- »
Read Whitepaper
Acorn Systems Provides: Customer Profitability Software, Customer Profitability Modeling, and Customer Profitability Solutions
|
-
- Acorn showed us that we were losing money on close to 70% of our orders... By incorporating
their quoting system, we now are profitable
- for the first time in 5 years.
- Dennis Floro, CEO
Wilson Mohr
Technology Features & Benefits Enterprise Performance Suite
|
