Customer Profitability Software Identifies Opportunities
to Make Customers More Profitable
Acorn Systems Profit Analyzer™ Software enables Companies to Significantly Increase Customer Profitability without Firing Unprofitable Customers
HOUSTON –August 2, 2004 –Companies wanting to improve customer profitability are identifying the root cause of unprofitable customers and using this information to implement more efficient business processes and pricing to increase profits with Acorn System Profit Analyzer™
More than 100 Acorn Systems customers have reported profit and revenue increase as a result of profitability initiatives identified Acorn Systems Profit Analyzer™. Acorn Systems Activity Based Costing Software, Profit Analyzer™ enables companies to measure the individual customer and transaction profitability of its business.
“Uncovering the root cause of why customers are unprofitable, provides companies with the actionable information they need to improve their business processes and make these and other customers more profitable for the company,” said Brian Wood, Research Director, Gartner Research.
“Too often companies try to increase customer profitability by firing unprofitable customers, which decreases revenue and spreads fixed cost among fewer customers, resulting in a downward spiral. The right answer is to understand which business practices and pricing policies are contributing to unprofitable customers and fix them,” said Leland Putterman, CEO of Acorn Systems.
“Acorn Systems Profit Analyzer™ showed us how we could improve our profit by using pricing methods, changing how a customer is serviced or simply changing the mix of products a customer buys to significantly improve individual customer’s profitability,” said Bill Scorse, CIO, Banta Foods. “We used this information to increase prices where needed and to set tiered pricing that provides incentives for customers who order in a manner that is more profitable for us. We have increased revenue and profits through these changes. Having the information on our cost to serve customers has been very helpful to us in retaining our customers and making them more profitable.”
About Acorn Systems
Acorn Systems is the leader in profitability management and optimization solutions. Acorn Systems helps clients to measure, analyze, predict, and then optimize Net Operating Profits at any level of granularity desired including products, vendors, customers, even individual transactions, in order to maximize shareholder value. Acorn Systems offers industry specific profitability solutions for the Grocery, Retail, Healthcare, Consumer Packaged Goods, Financial Services, Manufacturing, and Distribution in the Metals, Foods, Electronics, Paper, Healthcare, and Chemicals industries. For more information, visit www.acornsys.com, or call 1-800-98ACORN.
