Improve your Profit …. by preparing Management Accounts which focus on growing Customer Value (for you & them!).

It’s essential for a growing business to have good financial information. But if it doesn’t focus on your Customers then there’s a huge gap in your monthly board pack.

Customer Account Profitability isn’t a nice to have. It’s an essential part of understanding how you can improve the profit of your business, whilst adding more and more value to your client.

The essence of Customer Account Profitability (or as we call it Customer Value Management) is that you understand how much it costs you to service your customers’ requirements.

How many organisations do you know who spend hours helping out their clients, and then say that “they’re hard work”. If they knew that, even after they’ve allocated the cost of all those hours to their account, they’re still profitable then perhaps they would view that relationship differently.

The system isn’t difficult. It takes a little time to map out the services you provide to the client and how much it costs each time you provide it. Then you look at other factors such as how they impact on your cash flow.

That’s the thing with Management Information. Yes it needs to be relevant (to your strategy), accurate etc but it has to be quick to produce – otherwise you lose the value of it.

For more information on how to implement truly valuable Management Information systems which clearly identify who your best customers are (and/or can be) click here to download our FREE report.