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Customer Level NPV model

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A per account NPV model is an effective tool for prioritising your investments across segments and programs

 

Customer Level NPV model

 

Creating a profit based decisioning framework

A granular understanding of customer level profitability is a key to making fact based decisions in an organization. This requires a strong financial and behavioural model that can calculate and predict customer level profitability with high degree of accuracy. This will drive a common understanding of financial outcomes of various decisions your organisation makes from developing products to calculating ROI on campaigns. A per Account NPV model is an effective tool for prioritising your investments across segments and programs.

We will work with your finance and business teams to understand various revenue and cost lines and how to calculate them at a customer level. Using historical data we will build predictive functions for key revenue and cost line to arrive at a future P&L. This tool will project future revenues, costs and profits based on a current observed behaviour.

It will help you answer questions like:

  • What are the characteristics of the most and least profitable customers?
  • What are the key drivers of customer profitability?
  • How sensitive is the future profitability to key business drivers?