An understanding
of the profitability of accounts
Many companies are now able to report this, at least on an
estimated basis. Having this information:
-
provides a clear understanding of which customers are high
or low-value and which must be retained;
-
enables fast decision making, a prerequisite for global
account management;
-
provides better information to assist in commercial
negotiations with customers;
-
increases clarity on 'cost of sale' and 'cost to serve'
issues;
-
highlights differences in profit margin across geographies
for the same account;
-
highlights the economic value of certain business locations
/ routes;
-
assists in evaluating economic value of particular products
or services;
-
provides an input to the personal performance measurement of
account managers and teams.