What is Customer & Product Profitability (CPP)
As we provide insights and leadership in managing our businesses to profitability, visibility to our Customer and Product Profitability becomes a fundamental need. While the sales Volumes, Revenue and Margin may be visible at this level, in many businesses this only tells part of the story of profit contribution.
To see the full picture, often we need to combine the visibility of our Revenue and Margin with an accurate designation of operating costs along Customer and Product Lines.
It begins with a detailed view of Units, Revenue & Margin at the appropriate level of depth as determined by the business. We then layer in the attribution of operating expenses down to the product and customer level using a variety of Cost Designation Methods. The result is the full picture of profit at the customer and product level to enable an array of Analytics.
What Can You Do With CPP?
| View Product Opportunities with Customers | Identify Low Margin Products/Services |
| Assess Pricing Across Customers & Products | Compare Performance Across Business Segments |
| Assess Financial Impact of R&D Investments for New or Re-designed Products | Visibility to Contribution Profit Inclusive of Freight, Distribution and Customer Chargebacks |
With Customer & Product Profitability, you’ll be ready to answer those challenging questions from executives, investors, and functional leaders such as:
- Where should we invest?
- Where are we over-invested?
- Where should we cut?
- When will we be profitable for a specific product or segment?
Intelligent Analysis
Customer & Product Profitability (CPP) enables in-depth analysis:
| Drill from Channel to Customer to Product/Service |
| Volumes, Gross Revenue and Margins from Detail |
| Visibility of Gross-to-Net Actions Across Time |
| Marketing Expenditures Aligned with Campaigns and Initiatives |
| Align R&D Investment to Sales |
Customer & Product Profitability is part of the KeenVision Profitability Management Suite, which also includes People Planning & Analytics, Vendor Spend Analytics, and Material Cost Management.
Built upon Planful’s Dynamic Planning capability, CPP and all of the KeenVision Advanced Solutions integrate directly into your reporting & analytics footprint, either within Planful or with 3rd party applications such as Workiva or PowerBI.
If you would like to learn more about Customer & Product Profitability or any of the KeenVision Advanced Solutions, please download our Solution Brief and contact us at info@kvcfo.com.