ABC Customers

Not always the strongest business sales data such as sales are also the most profitable customers or contributions can be judged according to how important they are in terms of specific goals such as customers or markets: A = very important, B = important, ABC analysis C = less important/unimportant allows with a focus of the totality of all items included in the investigation, to separate the essential from the non-essential and so the available property, Human and financial resources specifically to invest in profitable sales activities. Click Ken Cron to learn more. An ABC analysis of customers can be created, for example, with a subdivision after solid sales sizes or with a subdivision according to percentages of the proportion of customers on the sales. An ABC assessment list can be created completely for all customers or for individual customer groups. With this ABC classification, the continuous credit monitoring of the A – and B customers can, as well as the Elimination of trivial C customers are based be. The importance of individual customer for the total turnover of the company shows the results of the analysis for ABC clients. This number can change in circumstances from year to year. It is important that based on these results, measures can be taken to secure the demand for the most important A customers increased sales activity.

Still possibly expected revenues could be compensated in particular A customer, in a timely manner through timely measures to increase revenue with B and C customers. Not all companies know their customers are profitable and which customers raise potentially negative effects on the result. The often practiced rating of customers after A -, B -, C – and D sales sizes is a license-rational grid and not suitable as a control instrument: sales of customer says only little is known about the profitability of the customers. It’s often the profitable customers who disproportionately take without loading or clearing services. The weaknesses avoiding the one-dimensional, purely sales-related ABC analysis can be in addition to the assessment scale of contribution margin, expand it. From 9 possible customer classes derive: the AA customers with high turnover and DB share have the highest customer value, the CC customers in contrast, the lowest value of the customer. Further information on detailed customer analysis and calculations: Becker, Jorg, intellectual capital report with customer barometer, 2009, ISBN 978 3 8370 5177 3 Dipl.Kfm. Jorg Becker (www.beckinfo.de)