The customers of your business are not equally profitable. For some, intensive care is valuable for others less. The value of a customer is determined in order to distribute the support costs to the right profitable customers and to achieve long-term profits. Turbo Inventory automatically calculates your Customer ABC Analysis.
The Customer ABC Analysis classifies the customers into A, B and C customers. This breakdown is based on the profit of the individual customers. The customers with the highest profit fall into category A, the customers with the lowest profit into category C. The goal of the Customer ABC Analysis is, on the one hand, to keep the costs for customers with the lowest profit, i.e., C customers, low and on the other hand to achieve more profit in the long term through intensive support of A customers. Ideally, according to the so-called Pareto principle, A customers account for 20% of the customer share, but account for 80% of sales.
But what is the point of this, it is so you can see this customer and say to yourself, “yeah, this is a great loyal customer. We should do something special for them to keep them around”
At Turbo Inventory, we are driven by innovation. We are proud to bring you the best solutions for your business, as we know exactly what is required for each sector in order to make the entire machine run effortlessly. Want to find out more please contact us