pockets of profitability

Download Pockets of profitability

Post on 10-May-2015

612 views

Category:

Business

1 download

Embed Size (px)

TRANSCRIPT

  • 1.Finding Pockets of ProfitabilitySCORE
    Presented by:
    Jeanne Rossomme
    jeanne@RoadMapMarketing.com
    RoadMap Marketing
    www.RoadMapMarketing.com

2. Agenda
Why should you care?
Case Study
5 Simple Steps to Create an Accounting Knowledge Center
Resources
Your Questions
Copyright 2010 RoadMap Marketing LLC
3. Your feelings about tax prep
Copyright 2010 RoadMap Marketing LLC
4. All Roads Do Not Lead To Profitable Growth
All dollars are not green
Its 4x easier to sell to an existing customer than toacquire one
The 80/20 rule applies to customers and products
53% of owners dont track customer retention
81% of owners dont track profits by markets
Most owners dont track profits by customer or product
Source:SunTrust survey of business owners
Copyright 2010 RoadMap Marketing LLC
5. The Value of Your Customers
They cost less.
They spend more.
They can be your best sales force.
They can provide new ideas for services and products.
They are more profitable.
Copyright 2010 RoadMap Marketing LLC
A 5% increase in customer retention yields an increase in profits of 25%-100%.
6. Your accounting system is a gold mine
Copyright 2010 RoadMap Marketing LLC
7. Key Questions you can answer:
What market segments or customer groups are most profitable and which are the most price sensitive?
Who are your companys most profitable customers?And which customers actually cost you money?
What are your companys most profitable products and/or services?Which are your loss leaders?
Which customers, products and services offer you the greatest future value?
Copyright 2010 RoadMap Marketing LLC
Studies indicate over 50% of customers do NOT generate sufficient profits to sustain operations.
8. Case Study
Copyright 2010 RoadMap Marketing LLC
9. Profit and Loss Statement
Copyright 2010 RoadMap Marketing LLC
10. Current Situation - Finance
Copyright 2010 RoadMap Marketing LLC
11. Current Situation - Marketing
Copyright 2010 RoadMap Marketing LLC
12. Which Market Segments?
Set up Customer Type in QuickBooks by Market Segment
Copyright 2010 RoadMap Marketing LLC
13. Structure QuickBooks to align expenses with income
Copyright 2010 RoadMap Marketing LLC
Which Products/Services?
14. Which Customers?
Fire unprofitable customers
Link expenses to each client
Copyright 2010 RoadMap Marketing LLC
15. 5 Simple Steps
Use Accounting History to Create Meaningful Customer Groups.
Start rating and tracking your marketing efforts and customer loyalty.
Decide on Product and/or Service Groupings.
Assign direct costs to customers and jobs to track profitability.
Use Customer, Product or Service Level Financial Reports To Focus On Pockets of Profitability.
Copyright 2010 RoadMap Marketing LLC
16. Step 1: Use Accounting History to Create Meaningful Customer Groups
Copyright 2010 RoadMap Marketing LLC
17. Step 2: Start rating and tracking your marketing efforts and customer loyalty
Copyright 2010 RoadMap Marketing LLC
18. Step 3: Decide on Product and/or Service Groupings
Copyright 2010 RoadMap Marketing LLC
19. Step 4: Assign direct costs to customers and jobs to track profits
Copyright 2010 RoadMap Marketing LLC
20. Step 5: Use Customer, Product or Service Level Financial Reports
Copyright 2010 RoadMap Marketing LLC
21. Quickbooks Company Snapshot
Copyright 2010 RoadMap Marketing LLC
22. Example of Revised P&L
Copyright 2010 RoadMap Marketing LLC
23. Establish benchmarks
Copyright 2010 RoadMap Marketing LLC
24. Extracting the Gold
Copyright 2010 RoadMap Marketing LLC

  • Cut or convert unprofitable products and services

25. Focus your marketing $ on those segments where you get the most gains 26. Look at Customer Lifetime value