In our previous blog we revealed that of the 100 top manufacturing executives surveyed in this report almost 40% of manufacturers expect their growth rate to be the same as the predicated industry growth rate of 6.6% -- revealing how they stack up against others in the industry. Among other insightful statistics, the survey answers an important question about the amount of visibility each of these manufactures have into their business.
Manufactures: Do you know which customers are most profitable for your company?
78% of respondents said they are able to identify their most profitable customers, while a slight 6% said they were not and 15% stating they had a general sense of who their most profitable customers might be but couldn’t totally be sure.
What this showcases and the message to take away from is that having the ability to identify your profitable customers and products is incredibly important to achieving revenue targets. When customer profitability analysis is done right, not only can you determine who your most profitable customers are but WHY certain customers are more or less profitable. Having a customer database that enables you to analyze customer profitability overtime is key – key to understanding your customers and to achieving target revenue.
After reading this article, how would you answer this question? Can you determine why a customer starts out as low-profit but eventually develops into a high-profit customer or vise-versa, why others begin as high profit, only to become unprofitable over time? These are the questions you should be able to ask and answer when it comes to analyzing your company. At a strategic level, this kind of information helps guide decisions on everything from growth initiatives to marketplace segmentation.
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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