Gaining Competitive Advantage Through

Account Level ProfitabilitySwetha Kasthurirangan

Analytics ManagerWellsFargo

GAINING COMPETITIVE ADVANTAGE THROUGHACCOUNT LEVEL PROFITABILITY

Swetha KasthuriranganFinance & Analytics ConsultingWells Fargo Centre

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HOW CAN YOU MEASURE THE VALUE OF YOURCUSTOMERS

Account Level Profitability

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SOME CUSTOMERS ARE MORE IMPORTANTTHAN OTHERS…

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Look, let me get back to you while I find out how important you are

Credit : Morris cartoons content

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IDENTIFYING THE PRIVILEGED CUSTOMERS

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COMPONENTS OF ALP

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Revenue Items

Cost Items

Loss

HOW TO SCALE THE ALP Identify the low hanging

fruits in the costs Nebulous costs later Identify surrogates for costs

in some cases Involve the whole company Lowest granular method for

allocation Business analyst who

understands business,operations, and can numbercrunch logically

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CHALLENGES IN CREATING ALP

There is no single customer profitability number– Anonymous

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CURRENT APPLICATIONS OF ALP

Who do we target What do we give them How do we service them Who we do not want to be our customers

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Q & A : THANK YOU

Don’t be seduced into thinking that what does not make a profit is without value – Arthur Miller

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Image Credit : Cartoonstock.com

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