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Customer Profitability

Customer Profitability

 

Resources

 
  "Angel Customers, Demon Customers: Discover Which is Which & Turbo Charge Your Stock"
by Larry Sheldon and Geoffrey Colvin.
Register to win a free copy!

Drive Growth with Customer Profitability Management- How Time Driven Activity Based Costing Delivers on the Promise of ABC
by Dr. Robert Kaplan and Steve Anderson
Read this whitepaper.

 

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.

Acorn’s 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.
  • Learn more about Profit Analyzer