Profitability eBook

This eBook will guide you towards understanding and improving the profitability of your business by teaching the foundational understanding and hands-on examples of sustainable improvements.

Profitability is a cross-functional effort that need to focus on the various aspects influencing the business’ profitability. We will discuss how different areas, such as pricing and cost-management, play their role in the profitability game.

This eBook is targeted for management and business development team, as well as other individuals responsible for profitability. However, it could still be used for understanding in a broader context, since the eBook provides personnel from sales, operations, sourcing, and finance with insights into how their operative actions are linked to profitability improvement.

What is customer profitability and how can we improve it?

Customer profitability (CP) refers to the profit that a customer brings to a company over a certain period. Thus, customer profitability tells you how much is left under the line when all the customer's costs are deducted from the revenue brought in by the customer.

Why is it worth considering customer profitability separately - why aren't we just talking about profitability? The averages don't tell the whole story behind the key figures. The income statement can even lead you in the wrong direction when you want to understand which customer relationships or product lines are profitable or unprofitable. That is why we need to take a more profound look at profitability.

Do you want to know more about customer profitability and relevant strategies?

Download the eBook via the form or book a meeting directly with Lotte to discuss opportunities with your profitability. 

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