Sweet Spot Management™ helps businesses to identify and focus their efforts on the business segments, products and customers that are best suited for them. When it comes to individual customer profitability, most traditional GAAP accounting systems provide misleading information, which often results in the company pursuing business that is not optimal. Traditional accounting spreads many costs across all customers instead of allocating them to specific customers. Sweet Spot Management™ invariably shows that 25 to 50 percent of a company's customers are not profitable – even when traditional accounting systems would show they were. Often used as a tool subsequent to the Corporate Body Scan process, this tool can also be used as a stand-alone process.
Place your mouse over the
outer circles for additional info.
Click on the center for Follow-up Tools.
Individual coaching with finance or costing department — analysis can be done by the company's internal staff with coaching throughout the process. Establishes a more accurate way to determine the true profitability of products and customers.
Proprietary process identifies opportunities — focuses on identifying true profitability (often very different from GAAP profitability) of segments, products and customers.
Recommendations delivered based on analysis — helps communicate to the sales team which customers they should focus on and why. Recommendations most often show how to change the way an organization does business rather than simply raising prices or firing customers.
4- to 8-day process - fast-paced learning and implementation make this tool easy to use.
Analysis delivered at end of process — easy to implement recommendations without significant resource investment. Determine which customers are profitable, and which are not, and how that situation can be remedied. Bottom line improvement can be seen within weeks.
