What Do We Do? - ABC Client Analysis

Have you ever thought about the profitability of each of your customers? If the answer is no, you may not be focusing your commercial strategies properly.

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Every company has a customer portfolio that, large or small, is heterogeneous. Not all customers are equally profitable and our commercial strategies should reflect it. Adapting our commercial efforts to the profitability, potential and importance of each customer is the only way to develop an efficient and competent customer-centric strategy. Moreover, failure to do so often results in wasted resources, effort and time. But don't worry, we have the solution!

Bismart ABC Client Analysis is a technological solution that ensures that the commercial strategies of a business are adapted to the profitability of each customer.

If you want to learn more about this solution, you can download the infographic we have created to view it on your computer or watch our ABC Client Analysis webinar.

 

 

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How Does ABC Client Analysis Work?

Using a dashboard environment, Bismart ABC Client Analysis analyzes and segments the client portfolio according to criteria of contribution to revenue and profitability

By analyzing the basic data of your customer portfolio, it deciphers the links between turnover, profitability and customers; achieving a unique environment where you can see which customers are the most important and, therefore, where we should focus our efforts and commercial strategies.

In short, this solution obtainis valuable information for the definition of your commercial strategies through data-driven decisions.

Clients are segmented according to two parameters: turnover and gross margin. In the turnover parameter, customers are classified into three hierarchical groups: A, B or C according to their weight in the company's turnover, and the percentage value of each type of customer (A, B or C) among the total turnover. For example, customers in category A may represent 80% of the total turnover, those in category B the 15% and those in category C a 5%. With this information, we will be able to prioritize our efforts and dedicate them to those customers who really interest us and carry out actions that are in line with their value.

For the gross margin, customers are divided into categories A, B, C or D according to their contribution to the organization's total gross margin. In this case, category D includes customers who have a negative gross margin value and are therefore unprofitable clients and a waste of time and money. 

ABC Client Analysis also incorporates a client matrix that shows the distribution of the client portfolio according to both parameters and allows you to explore in depth and in a single view the number of clients in each category and the percentage they represent over the total number of clients; as well as the percentage of each subgroup with respect to turnover and gross margin. This integrated perspective is essential to be able to make decisions that really have a positive impact for the company, since there is a possibility that we have customers who represent a large percentage of our turnover, but who, in turn, have a negative value on the gross margin. 

Bismart ABC de Clientes rentables y no rentables

 

Competitive Advantadges of Bismart ABC Client Analysis

Carrying out this type of customer segmentation offers great advantages. Firstly, through analysis, companies obtain valuable information and insights that translate into greater knowledge of the relationship between customers, turnover and profitability. They also discover which of their customers are profitable, which are not, and who their strategic customers are. This, in turn, leads to new conclusions and drives better decisions that are now conscious and in line with the company's profitability interests. In addition, ABC Client Analysis stimulates the development of new commercial strategies that are more productive for the business. 

ABC Client Analysis contributes to the definition of target markets and clients and allows the companies to know their clients more and better. It also establishes the concentration and risk diversification of the client portfolio and allows the company to identify high-risk clients.

This exhaustive and integral awareness allows the company to elucidate the growth potential of the client portfolio and encourages the preparation of strategies that will propel its expansion.

Moreover, Bismart ABC Client Analysis has additional benefits over other similar solutions, offering value-added capabilities:

  • Customer Storytelling: Bismart's dashboard environment does not simply classify customers into three categories, but develops a complete storytelling about each type of customer, their behavior and their value in relation to revenue and profitability.
  • Data modeling and pre-built report set: Bismart ABC Client Analysis allows data modeling and has a set of pre-built reports that can be customized and modified, but do not require to be built from scratch.
  • Adaptable and expandable: Bismart adapts the analysis and dashboard environment to the specific characteristics of each company. If you require an analysis with more metrics, we extend the environment so that the dashboards always give the necessary answers to the company's questions and goals. 
  • Can be integrated with the other corporate solutions: Bismart ABC Client Analysis is developed with Power BI and can be integrated with the rest of the company's solutions, technologies and systems. Bismart, as a Microsoft partner Power BI, has extensive experience creating solutions through this set of applications.
  • User friendly: The dashboard interface has an optimal usability that makes it possible for anyone, whether or not they have technical, business or data analysis knowledge, to easily navigate through it, to understand the information, gain knowledge and reach conclusions. You don't need to be an expert to use it!
  • SaaS Solution: This solution has cloud-based software that ensures data security and availability, as well as enables access to the environment from any location and device. 
  • Start up in less than a week: Start getting results in less than a week! Bismart develops the solution in a matter of days, don't wait any longer than necessary!
  • Low cost of use: As a SaaS solution, it does not require large processors, it has a low cost of use and you only pay for what you need, when you need it. In addition, since it is developed in Power BI, reports can be viewed through Power BI Desktop, which is free of charge.

That is, ABC Client Analysis is a solution that will allow you to optimize your commercial strategies, reduce risks, define your target customers and focus your efforts on your strategic customers.

If you have any doubts or would like to learn more about this solution, you can contact us and download the ABC Client Analysis infographic below:

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