CUSTOMER PROFIT OPTIMIZATION
Obtain a true customer profitability picture
Unravel which customers make you money, and which ones erode it.
- Clarify each customer’s individual financial contribution
- Make smarter decisions about pricing, account strategy & resource allocation
- Transform unprofitable relationships into valuable revenue streams
Unlocking profitability for
One third of your customers are unprofitable
On the surface, every customer makes you money. They buy your product at a higher price than it costs you to produce.
But dig deeper, and the reality becomes clear: not all customers add value. Some actually cost more to serve than they generate in revenue.
These unprofitable customers require more resources, time, and effort to manage, leading to greater service costs, increased order processing expenses, and potentially higher shipping fees.
And that’s before you account for discounts, rebates, extended payment terms, and complex service-level agreements.
Why is it hard to pinpoint unprofitable customers?
Volume of accounts
When you’re serving tens of thousands of customers, spotting the loss makers can feel like you’re searching for a needle in a haystack.
Focus on revenue
No customer looks like they’re losing you money when you’re measuring their value (and importance) solely by their total sales revenue.
Fragmented data
With lots of different, complex datasets and a lack of a central data source, analysing net customer margin is time consuming & resource intensive.
WHAT WE DO
We identify profitable & unprofitable customers
Understand your profit makers & takers
We help 9-figure manufacturing companies identify their most profitable customers and align strategy, resources, and activity to maximize bottom-line impact.
Our work empowers finance, pricing, and sales leaders to drive stronger margins and build healthier, more valuable businesses.
Identify outsized opportunities for business growth
What our customers say:
Being able to be this surgical and precise about what customers we choose to service, is a huge advantage (no one else can do it in our industry), which means we focus on all the best customers and allow our competitors to fight for the low profitability ones, because they're not able to identify those differences like we are.
Taylor Carcasole, Director of Strategy, Hi-Pro Feeds
Greater profits flow from greater visibility
Identify and plug profit gaps
Uncover hidden profitability gaps and fix inefficiencies before they impact your bottom line.
- Granular customer profitability analysis
Accurately track and analyze net profitability at an individual customer level, revealing which customers are underperforming and allowing for targeted action to close profit gaps. - Customizable reporting and dashboards
Easily access visual reports on customer profitability, empowering your team to quickly spot and act on any profit leakages across your entire customer base.
Optimize resource allocation for maximum impact
Align your teams, resources, and strategies around your most profitable customers.
- Profitability-based resource allocation
Direct your sales, support, and operational teams' efforts to high-margin customers, ensuring you’re investing in the right places to boost profitability. - Automated profitability scorecards
Quickly identify customers who require extra resources to remain profitable, so you can adjust service levels, sales efforts, or pricing to optimize their contribution.
Enhance long-term strategic growth
Design and execute a strategy that ensures sustainable, long-term growth.
- Dynamic customer segmentation
Create custom segments based on profitability, enabling targeted marketing, tailored sales approaches, and more effective retention strategies for high-value customers. - Predictive analytics and trend forecasting
Use historical data to forecast customer lifetime value and profitability trends, allowing you to anticipate future challenges and opportunities in your customer portfolio.
Are your biggest customers quietly draining your margin?
Take the Customer Profit Clarity Index™
In high-volume manufacturing, it's easy to mistake busy accounts for profitable ones. This rapid 4-minute assessment reveals how clearly you see the true financial contribution of every customer - factoring in cost-to-serve, complexity, and margin erosion.
Get your clarity score, uncover hidden profit drains, and access tailored steps to refocus your strategy around margin-making accounts
WHO WE TEAM WITH
Our technology partner
We harness the best of IBM software to solve your profitability blockers.
IBM is a household name in the technology market, whether that’s storage, compute, AI, the cloud, or cyber security.
ActionKPI is proud to be an IBM Gold Business Partner, an indication of our investment in IBM since 2013.
We take great pride in providing first-class services and solutions in the field of Data & Analytics with IBM products.
IBM awarded us the 2024 IBM Partner Plus Award in the “Digital Labor” category for North America.
WHO WE ARE
Our Founder & Lead Profitability Architect
Lance Tylor
Lance is a Chartered Management Accountant (CMA) within Canada and the UK, and has held several roles within the Office of Finance. Lance is passionate about helping finance leaders identify outsized opportunities for their business to grow, through the power of data and analytics. Lance has been the Alberta Chapter Chair for the Chartered Institute of Management Accountants (CIMA) since 2019.
Prominent profit potential starts here
Before
- Treat all customers equally, regardless of how much profit they contribute
- Sales teams pursue opportunities indiscriminately
- Unprofitable customers consume service, sales, and operational resources
- Customer decisions are made on intuition or incomplete data
After
- Segment customers based on profitability contribution
- Prioritise sales activity to most profitable customers
- Deprioritise or remove unprofitable customers
- Accurately assess and optimize customer relationships for maximum profit