CONCERNED ABOUT CUSTOMER PROFITABILITY?
Why should you be concerned about individual customer profitability? If overall profits are good, why be concerned about the details?
Possibly to answer more direct questions about customers, such as:
- Should sales push for volume or margin with a particular customer? What impact does this have on total profits?
- Does sales volume justify the discounts, rebates, etc., given to certain customers? Would you lose the customer if not offered?
- What actions can we take to influence customers to act more profitably?
Do you have the tools to answer these types of questions in an effort to improve overall customer profitability? Most businesses rely on the traditional system reports and spreadsheets that capture customer sales and profit information. However, is this enough?
DVA can enhance the analysis of this data by offering visualizations that combine data from multiple sources – company’s billing, shipping and sales reporting systems, as well as the customer data – to deliver a simple, flexible view of the business and customer profitability. The end result is an insight-to-decision process that is swifter than just using traditional system generated reports alone.
The analysis that follows illustrates the use of Tableau in visually analyzing customer sales and profit data for a fictitious company. In this case, the company has been experiencing a decline in profits while sales have been growing. The images below taken from the analysis highlight what sales and marketing can see using Tableau. In addition to the images, the following provides some key steps and explanations of what is entailed in constructing the analysis.