On 28 May, Victor Rocabert, CCO of Bismart, offered a training session during which he explained how to carry out an in-depth analysis of the customer portfolio, as well as the value of this analysis. If you missed it or want to watch it again the full video is available here (in Spanish):
Victor's training is focused on the concept of client ABC, which is based on the Pareto principle (80/20 rule that explains that 20% of the efforts generate 80% of the results).
The objective of the ABC analysis is that companies can align their strategies and efforts with the results obtained or expected. Although this training is focused on customers, the ABC analysis can also be performed focused on products, people or suppliers and applied to strategic management, inventory management, logistics, and quality control, among others.
This type of analysis allows us to understand whether our client portfolio is concentrated or diversified, and the risks involved in having a portfolio that is too concentrated and leads us to depend on a specific group of clients, which, as established by the Pareto rule, are those that bring us the greatest benefit. The analysis also explains which clients bring us value and which ones destroy it, which ones have more potential, which ones are profitable, which ones are strategic or how to improve efficiency, and how to use that information to improve our portfolio.
Victor then showed how this analysis can be carried out. It is a very powerful analysis that offers great benefit and it requires only some basic customer data. Victor shows through the Client ABC tool how a customer portfolio is distributed according to turnover and gross margin. The benefit of Bismart's tool is not only to show the traditional Client ABC, but to go one step further and show the Client ABC and D, which allows us to know, in addition to the clients that generate value, which clients are generating losses.
In addition, the tool allows us to know the distribution according to turnover and gross margin. This knowledge also allows us to know which are our strategic clients, the profitable ones and the non profitable ones. Bismart's Client ABC also allows us to know the state of the life cycle of these customers, that is, whether a customer is in a start-up, growth, stability or decline phase.
With this tool, it is also possible to consult a report that provides information on the characteristics of the customers, which can be limited by the ABC of billing, the ABC of margin, the ABC of potential and the customer category. In this way, it is possible to visualize what might be the reason for a client to be profitable, strategic or unprofitable and which decisions can be made to maintain or improve collaboration with the relevant clients.
At the end of the webinar, Victor was able to answer some questions raised by the attendees during which he clarified that the process of implementing the solution is simple and can be carried out in a short period of time since it does not require a great diversity of data. In addition, he emphasized that in the implementation of this solution, Bismart acts as a partner that accompanies the entire process, both from a technical and business point of view, and that the solution is totally adaptable to the customer's needs.