Uploaded on May 28, 2025
This presentation explains how Customer Profitability Analysis helps businesses identify which customers truly drive profit, not just revenue. It covers key concepts like segmentation, essential metrics, and aligning sales incentives with margins. Real-world examples and strategic sales buckets show how to prioritize efforts for maximum growth. The role of virtual CFO services and fractional CFO services in guiding businesses through this process is highlighted, enabling smarter decisions and stronger cash flow management for sustainable success.
Driving Profitable Growth Through Customer Insight
Driving Profitable
Growth Through
Customer Insight
By Contetra Pvt Ltd
Not All Customers
Are Profitable
• High revenue doesn't mean
high profit
• Some customers delay
payments or cost more to
serve
• Identify your "King
Customers"
• Use virtual CFO services to
gain profit-focused insight
What is Customer
Profitability Analysis
(CPA)?
• Analyzes profit per customer, not just
sale
• Considers cost, price, and payment
time
• Helps find truly profitable
relationships
Segment and
Strategize
• Group customers by
industry, region, or size
• Tailor messaging and
offerings per segment
• Better alignment boosts ROI
• Fractional CFO services help
guide smart segmentation
Key Metrics That
Matter
• Repeat Business: Shows loyalty
• DSO: Tracks payment speed
• Avg. Ticket Size: Customer value
• Repeat Revenue %: Retention insight
• Use metrics to optimize efforts
Align
Incentives with
Margin
• Don't reward just top-
line sales
• Shift focus to high-
margin products
• Align sales goals with
profit goals
The 5 Sales
•BExuisctinkge Ctusstomer + Product:
High certainty
• Existing Customer + New
Product: Low risk
• New Customer + Product:
Growth path
• New Customer + New
Product: High risk
• Cross-Sell: Unlock extra
revenue
Virtual CFO services help
evaluate bucket profitability
Real-World Lessons
• Marriott: Found most profit
in business travelers
• Zune: Failed due to weak
customer targeting
• Right profiling = right
results
Responsible saving and consumption
strategies
• Focus on working capital, not just sales
• Get paid faster = healthier business
• IFPL improved profit 200% by managing
cash better
Conclusion
• Your best customers are already
with you
• Use CPA, smart segmentation,
and margin-based incentives
• Let fractional CFO services
unlock sustainable growth
Contact Us
+91 98338 18857 [email protected]
https://contetra.com/strategic-business-finan
cial-management-solutions/
Thank you
very much!
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