Build a customer profit curve
Build a customer profitability ranking that distinguishes revenue size from profit contribution.
A company wants to know whether its largest accounts are also its most profitable accounts. Customer profit = customer revenue - product cost - cost to serve The common shortcut is ranking customers by revenue or ARR, then giving the biggest customers the most resources automatically. Start with revenue List each customer's annual revenue or ARR. Revenue is necessary, but it is only the top of the customer P&L. Subtract product economics Subtract direct product cost or gross-margin cost for each customer. This shows whether the sold product itself is economically sound. Assign cost to serve Add support tickets, success…
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