In our previous blog we discussed the survey results of 100 top executives in the manufacturing industry and their ability to identify customer value within their organization. 78 percent of respondents stated that were in fact able to identify their most profitable customers. This shows that having a reliable customer database that enables you to analyze customer profitability overtime is important. But how important is it to be able to identify profitability by region and can you?
Manufacturers: Do you know your most profitable region?
60% of respondents from this survey report noted that they were able to identify their most profitable region. 28% had a general sense and 12% stated that they could not identify their most profitable region. Why does this matter? Location is location and people are everywhere, right? Wrong. There are repercussions of not be able to accurately identify profitable regions for your business and the profitability of the products in that geographic region. There are reasons that are obvious, like where to focus your sales and marketing efforts and then there are reasons that are not so obvious. The geographic regions where you manufacture your products and conduct business plays a major role in determining overall business competitiveness. Being able to evolve with the global ecosystem is crucial in shaping the future success of how and where you do business. Take a look at these factors that play a key role in how you would conduct business in a certain region:
- Education and workforce preparation
- Economic, trade, financial and tax issues
- Infrastructure and energy policies
It is imperative to understand that if you cannot identify where you are most profitable, then how can you work to improve on the four points listed above? Increasing and improving your competitiveness in your prize location is key. Being able to identify which customers are profitable and which are not is very important but don’t forget that knowing your regions plays an even bigger role in sustaining business success.
Do not get left behind. Read the full report to strategically plan your next move and find your competitive edge before it’s too late. Download 2019 Manufacturing Industry Trends: Survey Results and Analysis here.
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