Customer profitability improvement

Challenge

A provider of outsourced back-office services to investment firms faced uneven profitability from its client base. The challenge was to achieve higher and more consistent profits by improving the quality of decision-making around pricing and resource allocation.

Approach

• Research: Devoted extensive efforts to obtaining, cleaning and validating data across the company’s clients, to ensure a consistent data set
• Analysis: Analyzed client activity levels, detailed costs, pricing and revenues,uncovering patterns of profitability
• Cost-to-serve: Built activity-driven model to estimate client cost, for increased accuracy in contract renewal pricing
• Implementation: Devised client-specific action plans
• Tracking: Created client dashboards showing performance relative to peers

Results

• Revised internal data collection process and financial reporting templates
• Delivered pricing tool to evaluate new and existing clients
• Provided roadmap for key actions to raise profitability with selected clients