Customer Profitability: VDDW Corporate Performance Management Initiatives for Results



	Initiatives: Overview Pricing Supply Chain Routing Planning & Budgeting Return On Advertising NOP–driven Negotiating NOP–driven Commission & Incentives Sku Rationalization Customer Profitability Market Segmentation Partner and Product Benchmarking Improved Category Management Staffing efficiencies Process Costing

Customer Profitability analysis is a key enabler for numerous business initiatives, many of which are examined in greater detail elsewhere in this website. Understanding customer profitability is key to market segmentation, the deployment of sales, marketing, and advertising resources, targeted R&D and new product offerings, service strategies, sales negotiations, and certainly many other initiatives that haven’t even been mentioned.
VDDW provides the information foundation for customer profitability analysis by exposing Net Operating Profit for each and every customer with whom the business deals. But it goes further than that, exposing the way in which every customer drives business processes and consumes business resources, and how it does so for the various products and services it buys, touch-by-touch, transaction-by-transaction.
In short, it provides everything needed not just to understand if customers are profitable and by how much, but in what ways, and why, and where to target remedial or opportunistic action. It is the foundation for intelligent response.