80/20 Value Creation / Solution
Customer and product profitability analysis
Move past blended averages and build a fact base for pricing, service, portfolio and resource decisions.
Discuss the situationWhat this work answers
See which customers, products and combinations create economic value—and which consume capacity without an adequate return.
The scope follows the decision and the available evidence. The objective is a management-owned answer that can be carried into pricing, portfolio, service, resource, and operating choices.
Situations that point here
When this work becomes useful.
- Revenue is growing while margin, cash or service performance is not.
- High-volume customers appear important but their true cost-to-serve is unclear.
- SKU and option growth have made the portfolio difficult to manage.
- Leadership debates priorities from anecdotes instead of a shared economic view.
Decisions it supports
What leadership must choose.
- Where profit is concentrated by customer, product, market and channel
- Which combinations deserve differentiated service, pricing or investment
- Where complexity costs are hidden by conventional allocations
- Which actions can improve the P&L without compromising the strongest relationships
Working outputs
Built to be used after the meeting.
- 01
Segmented customer-product economic view
- 02
Leadership-ready opportunity map
- 03
Prioritized pricing, service and portfolio actions
- 04
Measures for tracking realized financial and operating impact
Start a conversation
Discuss profitability analysis with a principal.
Share the company context, the decision in front of leadership, and what the current analysis has not resolved. The first conversation is confidential.
An introductory video call or meeting is the usual place to begin.