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Increasing counts of customers, products, and services are hallmarks of a successful, growing business—but they also make it difficult to have accurate visibility into what is driving profitable growth in your company and where to intervene to improve performance. In the face of today’s economic turbulence, supply chain disruption, and rapid inflation, detailed insight into the profitable core of your business is mission-critical. But how can you identify those integral elements of your operations? 

Enter the 80/20 rule: 80% of your profitability comes from 20% of your customers and products. Our 80/20 Profitability Analytics approach can help you pinpoint that high-value 20% that is the bread and butter of your bottom line and uncover the bottom 80% that are disproportionately adding operational complexities to your business.

BDO’s 80/20 Profitability Analytics approach offers an integrated suite of diagnostic, visualization, and dashboard tools to help your company isolate and identify its best customers and products at the most granular level.

BDO's approach is data-driven, flexible, and tailored to your business. We integrate information across your financial and operational data sources, as well as external data, to reveal previously hidden insights. With enhanced visibility into the customers and products that are disproportionately driving growth and profitability, business leaders can make informed, confident, and data-backed decisions around resource allocation, customer prioritization, pricing, product portfolio, and business simplification.

The results speak for themselves. Our 80/20 Profitability Analytics clients have experienced significant profit improvement opportunities, typically realizing between 10% to 30% in profit uplift.

Insights generated by BDO’s 80/20 Profitability Analytics solution provides a competitive advantage and enables leaders to make data-driven decisions regarding strategy, customers, products, innovation, and investments. Key insights and benefits include:

• The true costs and profitability of each customer, product, and service and how to prioritize them.
• Opportunities to improve margins through pricing.
• Understanding which products and services in the portfolio are driving profitability and which could be rationalized for simplicity without sacrificing profitability.
• How to reallocate resources (people, financials, and technology) to support profitable growth.
• Business simplification and strategic focus.

Benefits