Customer Profitability Analysis
MANAGEMENTS T R AT E G YMEASUREMENTM A N AG E M E N T AC C O U N T I N G G U I D E L I N ECustomerProfitabilityAnalysisByMarc J. EpsteinPublished by The Society of Management Accountants of Canada, the AmericanInstitute of Certified Public Accountants and The Chartered Institute ofManagement Accountants.
N OT I C E TO R E A D E R SThe material contained in the Management Accounting Guideline Customer Profitability Analysis is designed to provide illustrativeinformation with respect to the subject matter covered. It does not establish standards or preferred practices.This material hasnot been considered or acted upon by any senior or technical committees or the board of directors of either the AICPA, CIMAor The Society of Management Accountants of Canada and does not represent an official opinion or position of either theAICPA, CIMA or The Society of Management Accountants of Canada.Copyright 2000 by The Society of Management Accountants of Canada (CMA Canada), the American Institute of CertifiedPublic Accountants, Inc. (AICPA) and The Chartered Institute of Management Accountants (CIMA). All Rights Reserved.No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, withoutthe prior written consent of the publisher or a licence from The Canadian Copyright Licensing Agency (Access Copyright).For an Access Copyright Licence, visit www.accesscopyright.ca or call toll free to 1-800-893-5777.ISBN: 1-55302-141-X
S T R AT E G YC U S TO M E R P RO F I TA B I L I T Y A N A LY S I SINTRODUCTIONIn Charlotte, North Carolina, the customer service center of First UnionCorporation, the sixth largest bank inthe United States, handles 45 millioncalls per year. The center’s computersystem, “Einstein”, determines the ranking of a customer – profitable or unprofitable – in 15 seconds. Customers areassessed with respect to minimum balance, account activity, branch visits,and other variables. At the service desk,the computer screen displays a color –red, green, or yellow – to signify thecustomer’s profitability rating. Thus,when a customer requests a lower creditcard interest rate or a waiver of accountservice fees, the service representativeCONTENTSis able to respond quickly accordingto the customers’ rating.A company can outperform rivals only ifit can establish a difference that it canpreserve. It must deliver greater value tocustomers or create comparable value ata lower cost, or do both.Michael E. Porter. 1996. “What isstrategy?” Harvard Business Review(November-December).First Union recognizes that not allcustomers are the same. Though customer satisfaction is important, thegoal is to increase customer and corporate profitability. Customer profitability analysis is evolving as a basisfor determining the level of serviceEXECUTIVE SUMMARYPageINTRODUCTIONANALYZING CUSTOMERPROFITABILITYIMPROVING Y31323272829Strategic cost management and activity-basedcosting have caused companies to look moreclosely at the drivers of their costs. Increasingly,companies have been focusing on the causes ofcosts and profits to enable better managementof those costs and profits. First, companies focusedon product profitability and more recently oncustomer profitability.Companies recognize that though “exceedingcustomer expectations” is a worthy goal, exceeding those expectations profitably is necessary forlong-term corporate viability. Thus, an understanding of corporate profitability necessarilyrelies on an understanding of what drives shareholder value in organizations. Increasingly,companies are focusing on the relationshipsbetween employee satisfaction, customer satisfaction, and corporate profitability. They arefocusing on the drivers of corporate profitabilityand this requires an understanding of how toincrease customer revenues and how to decreasecustomer costs. This management accountingguideline provides a discussion with examplesof both the analysis of customer costs throughactivity-based costing and the development oflong-term customer relationships for increasedrevenues and profits through the measurementof customer value.3
MANAGEMENTS T R AT E G YMEASUREMENTthat customers receive and the level of theirfees. First Union estimates that its “Einstein”system will add at least 100 million to itsannual revenue. About half of that willcome from extra fees and other revenuefrom unprofitable customers, while therest will flow from pampering preferredcustomers who might otherwise leave thebank. First Union is not alone in this effort;an increasing number of companies employthe same procedures to determine profitableand unprofitable customers and managecustomer relationships to improve corporateprofits.The example above is one of many thatdemonstrate the increased corporate focuson customers and their profitability. Thisguideline presents a discussion of the stateof the art and of best practices in determining customer profitability with respect to: understanding and analyzing customerprofitability. maintaining and increasing customerprofitability. turning unprofitable customers intoprofitable ones.The guideline does not present a detailedexamination of an all-inclusive analyticaltool for determining customer profitability.It does, however, provide the tools thatpermit the analysis of customer profitabilityand the implementation of programs toimprove these profits.Over the last ten years, strategic costmanagement and activity-based costing(ABC) have created a framework for companies to more closely examine the drivers(or causes) of their costs in order to improvemanagement decisions and corporate profitability. Companies initially focused onproduct profitability are now using ABCand other models to further examine theprofitability of distribution channels andcustomers. Simultaneously, many companiesare exploring the drivers of profit and success through the use of the balanced scorecard. Whichever model is used initially,determining customer profitability requiresa clearer understanding of the causes ofthe revenues and the costs. This guidelineprovides details of company experiences inexamining the causal relationships betweenthe drivers of customer satisfaction andcustomer revenues as well as in measuringthe profitability and costs of servicingexisting customers. Comprehensive systemsthat identify, measure, analyze and managecustomer profitability and its drivers are4only now being developed (Epstein,Kumar, and Westbrook 1999).Expanding global competition is onereason behind the increased concern forcustomer profitability. Companies worldwide are being pressured to become morecustomer focused and to increase shareholder value. Customer profitability analysisis a useful tool in both areas.Increasing Customer FocusMany companies are convinced thatimproving corporate profitability requiresmore customer contact and closer customerrelationships. Further, many marketingprofessionals have directed recent attentionto increasing customer satisfaction, primarily examining the links between overallsatisfaction and revenues. Meanwhile,accountants have traditionally focused oncost reduction. Customer profitabilityanalysis attempts to bring together marketing and accounting professionals to analyze,manage, and improve customer profitability.Companies are attempting to betterunderstand and satisfy present and futurecustomer demands. However, the goal is toincrease customer satisfaction profitably.The analysis presented here, relying on ABCand other tools, can direct managerialattention to areas of improvement thatcan lead to greater customer and corporateprofits. An ABC system is not the onlymeans to measure customer profitability,but merely one of several tools that can beused.1Since ABC provides a better understanding of the profitability of products andservices, companies have started to use thesame approach to understand the profitability of customers. Following an ABC analysis,companies can examine the customer profitability information and determine how tomanage customer relationships in order toincrease customer satisfaction and theprofitability of both individual customersand customer segments. The ABC analysisoften provides information leading to suchimproved relationships that the profitabilityof both the company and its customers isincreased.Companies have been using improvedinformation technology and large databasesto help refine marketing efforts. Marketingtools and IT systems now permit companiesto target individual customers and customergroups with pinpoint accuracy and to
C U S TO M E R P RO F I TA B I L I T Y A N A LY S I Sdetermine whether or not a customer spendsenough to warrant the marketing effort. AtFederal Express, for example, customers whospend a lot of money but demand little customer service and marketing investment aretreated differently than those who spendjust as much but cost more to maintain. Inaddition, the company no longer marketsaggressively to those customers who spendlittle and show few signs of spending morein the future. This change in strategy hassubstantially reduced costs.paying attention to the profitability of eachcustomer.Fed Ex also analyzed the profitability ofthe 30 large customers that generated about10% of the total sales volume. The company found that certain customers, includingsome that required a lot of residential deliveries, were not bringing in as much revenueas they had agreed to initially when theynegotiated discounted rates. The companyincreased the rates for some customers andlost those who would not agree to the ratehikes. In this case the focus is not merelyon customers, but on profitable customers.When Federal Express says “100 percent customer satisfaction, by performing 100 percent to our standards, as perceived by thecustomer”, what do they really mean? Dothey always want to satisfy all customers?With customer profitability analysis, increasingly companies like Fed Ex are saying thatthey do want to satisfy customers, but theywant to do it profitably. They are also anticipating and creating new customers for theirproducts and services; for example FederalExpress created the overnight package delivery market and is now creating anothermarket for same-day delivery. This is anotherway that Fed Ex satisfies customer demandand maintains profitability.First Union is but one example of acompany that has adopted new strategies toincrease shareholder value. Although exceeding customer expectations is a worthy goal,companies recognize that exceeding thoseexpectations profitably is necessary for longterm corporate viability. To improve corporate profitability and shareholder value,companies must have a more completeunderstanding of the drivers of value intheir organizations. To do this, companiesincreasingly focus on the value drivers andon the causal relationships among employeesatisfaction, customer satisfaction, customerprofitability and corporate profitability.Improved corporate profitability requires adeeper understanding of ways to increasecustomer revenues and decrease customercosts. Essential components of improvedcustomer profitability include: the analysis of the cost of customerservice through ABC; the measurement of the lifetime value ofa customer; and the development of long-term customerrelationships for increased revenues andprofits.Another company that has benefited fromcustomer profitability analysis is Scotlandbased Standard Life Assurance, Europe’slargest mutual life insurance company. Thecompany was stunned when the first resultsof a profitability survey showed that theinsurer was selling policies primarily to thosewho held little potential for making moneyfor the company. Instead of attracting theaffluent customers Standard Life wanted,its direct mail marketing campaign wasencouraging older couples and stay-at-homemothers to sign up for costly home visits bysales agents. Revenues were higher, but theywere the wrong kind of revenues; these werecustomers who typically bought only onepolicy and the margins were small. StandardLife was focused on customers, but was notIncreasing Shareholder ValueAs the interest in increasing customer satisfaction has grown, so has the interest inincreasing shareholder value. Companies arecompeting globally not only for customers,laborers, and suppliers, but also for capital.This has caused companies to concentrateon satisfying investors and lenders throughan increase in shareholder value.An important challenge for companies isto manage customer relationships in orderto make each customer profitable. Bank ofAmerica calculates its profits every monthon each of its more than 75 million accounts;this permits the company to focus on the10% of its customers that are the most profitable. Since it launched the program in1997, customer defections are down andaccount balances in the top 10% havegrown measurably. Calls from preferred andunprofitable customers are routed to different operators. A personal identificationnumber entered by each caller allows thebank to determine, among other things, thecustomer’s profitability ranking. The levelof attention and service will then differaccordingly. Bank of America still valuescustomer service, but also understands that5
MANAGEMENTS T R AT E G YAt First Chicago Corporation, a part ofBank One, profit and loss statements wereprepared for every client, and a 3 tellerfee was imposed in 1995 on some of themoney-losing customers. Thirty thousandof them, about 3% of the bank’s totalclients, closed their accounts. Some customers became more profitable by increasing their account balances to avoid the feeor by visiting ATMs instead of the tellers.While First Chicago lost some customers,it was also able to improve the profitabilityof most. Understanding customer profitability requires an understanding of the costsof customer service.Paging Network, Inc., a paging serviceprovider located in Dallas, initially gaveaway its pagers to increase market share.After analyzing data on individual customersthe company determined that many customers were too costly to service profitably.It sent letters to marginal customers increasing the rates and subsequently lost 138,000customers in the third quarter of 1998. Ofthe remaining 10.2 million subscribers, itexpected to lose another 325,000 customersbefore the end of 1998. The companydetermined that the cost to service thesecustomers was greater than the revenuebeing generated and decided to cut itslosses.2Customer Satisfaction, Loyalty,and Value3Recently, many companies have looked tothe service profit chain model (See Exhibit 1)to help them understand the causal relationships between employees and customersand the impact on revenue growth andfirm profitability. Among the relationshipsthat have been documented and measuredin this model are: customer satisfaction and loyalty; the value of services and goods deliveredto customers; employee satisfaction, loyalty, andproductivity; and employee capabilities that aid in delivering outstanding results to customers.(Heskett, Sasser, and Schlesinger 1997:18)Exhibit 1 – The Service Profit ChainInternalExternalOperating strategy andservice delivery systemService conceptTarget market Revenuegrowth LoyaltySatisfaction SatisfactionLoyalty Servicevalue Productivity&Outputquality Employees Capability Profitability MEASUREMENTthere must be a balance between customerservice and customer profitability. ServicequalityWorkplace designJob design/decision-makinglatitudeSelection and developmentRewards and recognitionInformation and communicationAdequate “tools” to servecustomersQuality &productivityimprovementsyield higherservice qualityand lower costAttractivevalueLifetime valueServicedesigned &deliveredto meettargetedcustomers’needsRepeat businessRetentionReferralAdapted and reprinted by permission of Harvard Business Review. An exhibit from ‘Putting the Service Profit Chain to Work,’ by James L. Heskett,Thomas O. Jones, Gary W. Loveman,W. Earl Sasser, Jr., and Leonard A. Schlesinger, March –April 1994, p.166. Copyright 1994 by the Presidentand Fellows of Harvard College, all rights reserved.Source: Heskett, Sasser and Schlesinger 1997: 19.6
C U S TO M E R P RO F I TA B I L I T Y A N A LY S I SFinance and accounting professionalsmust understand these relationships toassociate: the human resource focus on employees; the production focus on operations; the marketing focus on revenues; and the traditional accounting focus on costs.The integration provides significant valueto marketing and general managementexecutives as they try to improve customerand corporate profitability. Some of the relationships between customers and employeesare self-reinforcing: satisfied employeescontribute to customer satisfaction, andsatisfied customers contribute to employeesatisfaction.To a customer, value involves the expectedbenefits and costs of a product or service, andthe customer’s perception is of significantrelevance. The expected benefits are derivedfrom the product and service attributes andthe expected costs include the transactioncosts, the life-cycle costs, and the risk.Transaction costs are typically the immediatefinancial outlay, which includes the price,delivery, and installation costs. The life-cyclecosts are the additional expected costs thatthe customer will incur over the life of theproduct. The risk is associated with the lifecycle costs (SMAC 1995:3).Conceptually, the profit levels generatedby customers due to retention, related sales,and referrals are shown in Exhibit 2.Customers do not determine corporatestrategy, but their values and expectationsfor the company’s products and services areinfluential. Organizations place great valueon their customers and depend on them forlong-term viability. Five fundamental customer value axioms apply to most companies and help explain a customer’s value tothe firm:i) The customer defines the product quality,service quality and acceptable price.ii) Customers form their expectations relative to competitive alternatives.iii) Customer expectations change, usuallyupward.iv) Product and service quality must extendthroughout the value chain.v) Maximizing customer value requires thatthe whole organization be involved.(SMAC 1995:7-8)Customer SatisfactionCustomer satisfaction is the perception thatthe products or services received meet orexceed the expectation of the product orservice. This is not an isolated phenomenonand is often considered within the contextExhibit 2 – Why Customers are More Profitable Over TimeProfit from price premiumProfit from referralsCompany Profit*Profit from reducedoperating costProfit from increasedpurchases and higherbalancesBase profit0123Customeracquisitioncost4567YearSource: Heskett, Sasser and Schlesinger 1997: 64.Reprinted by permission of Harvard Business Review. An exhibit from “Zero Defections: Quality comes to Services” by Frederick F. Reichheld andW. Earl Sasser, Jr. (September-October 1990), p. 108. Copyright 1990 by the President and Fellows of Harvard College; all rights reserved.*This pattern is based on our experience in many industries.7
MANAGEMENTS T R AT E G YMEASUREMENTof loyalty, retention, and profitability.Researchers have shown that a causal relationship exists between customer satisfaction and customer loyalty and that thisrelationship often leads to increases inprofitability.Many companies have long held theview that customer satisfaction is a prerequisite for long-term profitability. Increasedcompetition and maturing markets havemade the issue of customer satisfactionmore significant. Further, the focus of salesand marketing has often shifted from anoffensive strategy of finding new customersto a defensive strategy of retaining currentcustomers and increasing the volumeof their purchases (Fornell, Ryan, andWestbrook 1990:14).A study by American Express Traveldemonstrated the relationship betweencustomer satisfaction and profitability. Afterestablishing that business travelers fromlarge companies were the most profitablecustomers, American Express determinedthat what these customers valued most wasfast service, professional treatment, experienced agents, and accurate ticketing. Theyalso found that those offices that deliveredthe fastest, most accurate ticketing wereamong the most profitable (Heskett, Sasserand Schlesinger 1997:20).However, satisfied customers can also beunprofitable, as reported by Federal Expressand Page Net, and previously discussed.Individual customer satisfaction does notnecessarily lead to customer profitability.Customer retention, customer loyalty,and customer service costs must also beexamined.Customer Retention andCustomer LoyaltyCustomer retention is the ongoing customerrelationship that yields revenues from thesale of additional products or services. Therevenues become more profitable as thecustomer becomes easier to serve. Sincethe customer is buying again it is assumedthat less sales effort is required, customerservice costs decrease, and the costs ofacquiring customers decline.Ford Motor Company recently estimatedthe value of customer retention (i.e., thepercentage of the firm’s customers buyinga Ford as the next car). Ford’s stated goalwas to increase customer retention from60% to 80% as the company was convinced8that each additional percentage point ofcustomer retention was worth 100 millionin profits.Software producer Intuit found the worthof a customer to be far greater than thecustomer’s original purchase of Quickensoftware. The revenue is 30 initially, butincreases to several hundred dollars ormore as satisfied customers buy additionalproducts. The revenues continue over timewhile the costs of customer service decrease.Customer loyalty encompasses customerretention but also includes the customers’recommendation of the product or serviceto other potential customers. Word ofmouth recommendation is important toSouthwest Airlines, whose reservationsystem has never been accessible to travelagents. It has relied on advertising andcustomer loyalty to spread its message topotential customers. The airline, whichbegan flying in 1971, has consistently beenprofitable. Convinced that customer loyaltyis a more important factor in increasingprofitability than is market share, SouthwestAirlines strives to build customer loyaltyby providing at low fares dependable, frequent service over relatively short routes,delivered by friendly employees.The relationship of customer loyaltyand customer satisfaction can be seen inthe following categorization of customers;it is important to understand fully theenvironment which the customer is working, as extrinsic factors may drive themfrom one category to another: Apostles. Customers who are loyal andsatisfied and recommend the service toothers. Mercenaries. Customers who may switchservice suppliers to obtain a lower price,but are highly satisfied. Hostages. Customers who are highly dissatisfied but have few or no alternatives. Terrorists. Customers who have alternatives and use them, and also try toconvert other customers by expressingtheir dissatisfaction. (Heskett, Sasser,and Schlesinger 1997:85)The model in Exhibit 3 shows the relationships between satisfaction and loyaltyfor these four groups in different competitive environments.This model also suggests strategies forinvesting in customer satisfaction improvements for the greatest amount of profitimprovement. The “apostle” group of
C U S TO M E R P RO F I TA B I L I T Y A N A LY S I SExhibit 3 – How the Competitive Environment Affects the Satisfaction-Loyalty RelationshipNoncompetitive Zone“Hostages”“Apostles”highRegulated monoplyor few substitutesDominant brand equityConsumer indifferenceairlinesPowerful loyalty programMany substitutesLoyaltyHigh cost of switchingProprietary technologyHighly Competitive ZoneCommoditization orlow differentiationlocal telephoneLow cost of es”2345completelysatisfiedsatisfactionNote:Words in quotation marks have been added by the authors to describe customers exhibiting varying degrees of satisfaction and loyalty.Adapted and reprinted by permission of the Harvard Business Review. An exhibit from “Why Satisfied Customers Defect,” by Thomas O. Jones andW. Earl Sasser, Jr., November-December 1995, p.91. Copyright 1995 by the President and Fellows of Harvard College; all rights reserved.Source: Heskett, Sasser and Schlesinger 1997: 85.customers and those who are close to being‘apostles’ should be cultivated and maintained as a valuable resource. This groupincludes satisfied customers who also tellothers about the product or service, andcan be considered a part of the sales forceand a valuable marketing tool. On theother end, the “terrorist” group can have adetrimental effect on the company, sincethey are vocal in their dissatisfaction.Efforts to turn this type of customer aroundoften prove very beneficial.Balanced Scorecard andthe Value PropositionThe balanced scorecard is a strategic management system that focuses on the drivers ofprofit, success, and value in organizations.It looks at four organizational perspectivesand the causal links among them. In thebalanced scorecard, companies identify andmeasure the drivers of future performancethrough the identification of key successfactors, and then develop key performanceindicators to link to corporate, business unit,and functional strategies. The balanced scorecard includes financial and non-financialmetrics that incorporate both lagging andleading indicators of performance. The fourperspectives of the balanced scorecard are:i) Financial. To succeed financially, howshould the organization appear to itsshareholders?ii) Customer. To achieve its vision, howshould the organization appear to itscustomers?iii) Internal business process. To satisfy shareholders and customers, at what businessprocesses must the organization excel?iv) Learning and growth. To achieve thevision, how will the organization sustain its ability to change and improve?(Kaplan and Norton.1996: 9)In the customer perspective (See Exhibit4), the organization identifies the customerand market segments that will deliver therevenue component of the company’sfinancial objectives. The customer perspective enables the firm to fine-tune its corecustomer outcome measures – satisfaction,loyalty, retention, acquisition, and profitability – to targeted customers and marketsegments.9
MANAGEMENTS T R AT E G YExhibit 4 – The Customer Perspective Core Measures MarketShare CustomerProfitability CustomerAcquisition MEASUREMENT CustomerRetentionCustomerSatisfaction MarketShareReflects the proportion of business in a given market (in terms of number ofcustomers, dollars spent, or unit volume sold) that a business unit sells.CustomerAcquisitionMeasures, in absolute or relative terms, the rate at which a business unitattracts or wins new customers or business.CustomerRetentionTracks, in absolute or relative terms, the rate at which a business unit retainsor maintains ongoing relationships with its customers.CustomerSatisfactionAssesses the satisfaction level of customers along specific performance criteriawithin the value proposition.CustomerProfitabilityMeasures the net profit of a customer, or a segment, after allowing for theunique expenses required to support that customer.Source: Kaplan and Norton 1996: 68.Exhibit 4 suggests that there are causalrelationships within the core measurementgroup. The relationships among customersatisfaction, customer retention, and customer acquisition have a direct effect onthe profitability of the firm, reducing customer costs and increasing revenues.The balanced scorecard relies on the valueproposition – that set of unique productsand services that differentiate the companyand provides value to its customers. Analysisof the value proposition is essential forunderstanding how customers are retained,what will satisfy them, and how they canbecome more profitable.The proposition defines what is uniqueor valuable about the company’s productor service. From the customer’s perspective,this includes the attributes of the productsand services that create satisfaction andloyalty among the customers. The value10proposition (see Exhibit 5) is the primaryconcept for understanding the drivers ofsatisfaction, retention, acquisition, andmarket share. While these propositionswill vary significantly for different organizations, typically the following commonattributes are included: product and service; customer relationship; and image and reputation.The product and service characteristicsof the model include functionality, priceand quality (Kaplan and Norton 1996:73).How well does the product work? Is thequality good enough to keep the customersatisfied? Is the price too high or too low?A price that is too high will detract customers from buying the product in thelong run. Perhaps they will buy it once,but they will not be repeat or loyal customers.
C U S TO M E R P RO F I TA B I L I T Y A N A LY S I SExhibit 5 – The Customer Value PropositionGeneric ModelValue FunctionalityProduct/Service AttributesQualityPrice Image RelationshipTimeSource: Kaplan and Norton 1996: 74.The relationship aspect includes thedelivery of the product or service to thecustomer and how the customer feels aboutpurchasing from the company. This relationship between the firm and its customers isimportant to maintain and often includespost-sale service. Some companies chooseto end the relationship between them andtheir customers at the point of sale, such asin the case of computers and appliancespurchased at discount stores. If these customers are unhappy with the product, theymust contact the manufacturer directly.The image and reputation aspect reflectsthose intangible factors that attract a customer to a company, such as loyalty to abrand name. This aspect provides the company a
costing have caused companies to look more closely at the drivers of their costs. Increasingly, companies have been focusing on the causes of costs and profits to enable better management of those costs and profits. First, companies focused on product profitability and more recently on customer profitability. Companies recognize that though .
Aggregate level Profitability Requirements Bottom up profitability computation Highly detailed, highly dimensional cost and profit objects Customer event, order, or transaction costing and profitability Requirements Management reporting Augment thin ledger efforts
This paper describes how the sap Businessobjects profitability and cost management application leverag-es activity-based costing as the foun-dation for robust customer, product, and channel profitability analysis; how best to utilize various methodologies; and what represents b
Using the Web Service API Reference - ProfitabilityService The Oracle Hyperion Profitability and Cost Management Web Service API Reference - Profitability Services provides a list of the WSDL Web Services commands used in the Profitability Service Sample Client files. For each operation, the parameter
Customer satisfaction has identified as an important influencer on customer loyalty. Further, customer trust impacted by customer satisfaction which proved that customer satisfaction is an antecedent of customer trust. Moreover, an indirect relationship between customer satisfaction and loyalty through customer trust was observed.
Sage Intelligence Profitability Dashboard and Sage Inventory Advisor. Using the Profitability Dashboard makes it easy for you to identify customer, product, and salesperson profitability in variable time frames. . Sage Intelligence is now compatible with the 32 and 64-bit versions of Microsoft Excel
Financial ratios can be classified into ratios that measure: (1) profitability, (2) liquidity, (3) management efficiency, (4) leverage, and (5) valuation and growth (Syamsuddin, 2009). In this study, for the purpose of financial ratio analysis, we use four ratios, namely liquidity ratios, activity ratios, leverage ratios, profitability ratios.
Customer and product profitability Predictive modeling Statistical analysis Other None of the above Percentage of Respondents Source: Gartner. John E. Van Decker, Christopher Iervolino. Survey Analysis: Gartner-FEI Study Helps You Understand the CFO's Technology View in 2016.July 2016.
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