Customer & Product Profitability

This is it.

Profitability starts with the customers. Knowing them, and your products, is the key to true profitability. Capacent has a track record of more than twenty years in this area of expertise. It gives us a superior edge as a partner in improving your customer and product profitability.

How we do it.

The first step is to define the initiative and create involvement amongst key personnel – the Nordic way. We then determine both revenue and cost drivers and gather data from existing systems. The drivers are allocated to specific products and customers.

Workshops are an important part in the process of engaging management and personnel, agreeing on profit targets and action plans. Finally, successful implementation requires full integration into existing management reporting systems.

Our approach.

Measuring profitability in terms of overall operating profit is not good enough. We need to trace revenues and costs back to the individual products and customers. And the final decisions regarding product and customer portfolios are always a matter of judgement, taking into account the strategic focus and direction of the company as well as the desired long-term relationship with the customers.