Most of us know a lot about our customers–or do we? We certainly know who they are and which ones are a pain in the you-know-what. We may know what they order, how fast they pay and maybe we know the buyers favorite sports team. But do we know enough to make good decisions about how to manage the entire customer portfolio to maximize productivity and profitability?
Here are fourteen things you should know:
- How much revenue each contributes
- Rank of customers by revenue
- Rank of customers by unit volume
- Number of customer orders and trends (ordering more, less, same?)
- Average revenue per order (hint: frequent small orders are often unprofitable)
- Average number of units per order (perhaps you can get them to bundle bigger ticket items that are more profitable with smaller items)
- Customer profitability
- Customer ranking by gross margin %
- Customer ranking by gross margin $
- Customer base changes-new customers vs. loss customers, increasing revenue customers vs. decreasing revenue customers
- Definition of target customers by observable characteristics
- Definition of target customers by qualifier criteria
- What criteria profitable customers use to select their vendor
- How you perform on that criteria relative to the competition
Now what to do with all this information:
When we work with clients we collect the first 12 variables in an excel sheet for analysis. Then we use the last two to develop a competitive position that will help you grow your business with profitable customers.
Interested? To access these tools, FREE, just contact us here. We will be happy to send them to you!