Solutions

Customer Profitability

Astrada help clients to implement Customer Profitability Management.

How do you improve your Customer Profitability?

Astrada help clients to design cost and profitability analysis models and systems to present profitability information by both product and customer. When people talk about costing and profitability information they most often refer to product cost and product profitability. In many ways customer profitability is more important to have a grip of and more important to understand. Some products in your assortment can be very profitable and some very unprofitable but the customer very often buys both. In that situation it is interesting to know and understand the total profitability by customer.

So, to have a reliably, transparent and quite accurate product costing model is not enough to understand the profitability per customer. It is also quite common that the product costing model does not cover all costs related to the profitability of the customers. To be able to present profitability information by customer, our profitability model/system must cover and be able to handle sales and administration costs, maybe some R&D costs and eventually other customer specific costs (e.g. customization costs, special freight, special packing etc.). Astrada help clients to design cost and profitability analysis models and systems to present profitability information by both product and customer. Customer profitability information from astrada5 can also be integrated into our clients existing CRM systems, to add extra competitive advantage when making key customer and pricing decisions.

Not just customer profitability...

Besides product and customer profitability analysis our models implemented at our clients handles other business dimensions and are able to present profitability information by e.g. customer segment, market, sales channel and income stream (e.g. new capital goods sales, service sales and parts sales).