Developed an internal customer profitability index
by Sara W.For the past couple of weeks, I've been hard at work at determining if our customers today are in fact our ideal customers. By ideal I mean if what we deliver is not only valuable, but also profitable.
So we went back to the drawing board, analyzed all of our customers, tracked their associated time to complete their projects and came up with a customer profitability index. What we realized is we had some great customers that were profitable and some that are valuable but that we need to adjust pricing to reflect our true value.
Although we won't adjust any prices for now, I'm glad we have a process in place to detect our profitability and ideal customers. This has been invaluable to us.
Interestingly, we offer these similar kinds of analyses as a service to our customers called "Growth Finance" services. I'm excited to see this service line grow as it directly aligns us with our customers' best interest -- growing their business.
