Every pound of shareholder value comes from customers.
Not products. Not processes. Customers.
Yet many organisations still pursue sales volume while quietly losing money on the customers they work hardest to serve. In a world of commoditised products and rising service costs, this approach is no longer sustainable.
This session shows how to shift from product-centric thinking to customer-centric profitability, using analytics and cost insight to focus effort where it truly pays back.
Led by Gary Cokins, one of the world’s leading practitioners in cost management and performance analytics, this presentation delivers practical guidance you can apply immediately.
Why this matters now
Power has shifted from sellers to buyers. Differentiation based on product features alone is disappearing. Loyalty must be earned, not bought.
To compete, organisations must understand which customers create value, which destroy it, and how to allocate scarce sales, marketing, and service resources for maximum return. That requires moving from chasing growth at any cost to managing profitable growth.
What you’ll learn
Why customers are the true source of shareholder value and how commoditisation makes customer relationships a decisive competitive advantage
How to shift from growing sales to growing profitable sales, treating customers as investments with measurable returns
Why marketing and sales need financial and cost-to-serve insight to make better account, pricing, and incentive decisions
How to measure and manage product, channel, and customer profitability, including when and how to apply Customer Lifetime Value (CLV)
This presentation will cover:
- The six eras of management accounting including the shift from product and service-lines to a customer-centric one.
- The continuum of direct costing from project accounting to standard costing to activity-based costing (ABC).
- Basic concepts about activity-based costing (ABC).
- Why “cost-to-serve” expenses (e.g., distribution, marketing, selling, customer service) expenses are more important than product and service-line expenses.
- How to quickly design and implement a customer profitability measurement system in weeks, not months, using rapid prototyping.
- Actions taken with the information to make customers more profitable.
Key takeaway
You will leave with a clear framework for calculating customer, product, service-line, and channel profitability, and a practical understanding of how marketing and sales can increase profit by focusing on the customers that matter most.
Speaker:
Gary Cokins
President, Analytics-Based Performance Management LLC.
Gary Cokins is an internationally recognized expert, speaker, and author in advanced cost management and performance improvement systems. He is the founder and President of Analytics-Based Performance Management, an advisory firm located in Cary, North Carolina at www.garycokins.com . Gary received a BSc degree with honors in Industrial Engineering/Operations Research from Cornell University in 1971. He received his MBA from Northwestern University’s Kellogg School of Management in 1974.
Gary began his career as a strategic planner with FMC’s Link-Belt Division and then served as Financial Controller and Operations Manager. In 1981 Gary began his management consulting career first with Deloitte consulting, and then in 1988 with KPMG consulting. In 1992 Gary headed the National Cost Management Consulting Services for Electronic Data Systems (EDS) now part of HP. From 1997 until 2012 Gary was in business development with SAS, a leading provider of enterprise performance management and business analytics and intelligence software.
His authored books are Performance Management: Finding the Missing Pieces to Close the Intelligence Gap (ISBN 0-471-57690-5); Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics (ISBN 978-0-470-44998-1); Activity-Based Cost Management – An Executive’s Guide (ISBN 0-471-44328-X); Predictive Business Analytics (ISBN 978-1-118-17556-9); and Supply Chain Costing and Performance Management (ISBN 978-1-119-79363-2). They are published by John Wiley & Sons. Mr. Cokins can be contacted at [email protected] .
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