Profitability Driver

Can you tell at a forensic level exactly which of your customers are profitable and which ones actually cost you money?

Executives are now taking a more sophisticated look at customer profitability as a driver for business growth.  The StaffBalance Profitability Driver simulation model software can help you to gain a clearer understanding of the profitability of customers, people, products and distribution channels.

Traditional accounting systems don’t provide in-depth metrics on customer profitability.  Normal financial reporting does not require you to allocate your operating costs across your customer-base.  The reality is that sales, operations and administration costs are all costs incurred in serving a customer.

There are serious implications for a company that cannot measure and manage customer profitability.  These can include:

  • Breakdown in relationships between customers and suppliers
  • Excessive demand by customers for free services or heavily discounted products
  • Over-servicing of unprofitable customers, due to lack of information.

Simulation modelling technology is used to help companies to calculate the profitability of individual customer relationships.  Fact-based data is used to build a model of your organisation and the technology that is used is a specially developed Time-Driven Activity Based Cost management simulation model.

For more information about Profitabilty Driver modelling call: +353 1 8336567