We’ve talked in a prior blog post about the impact unprofitable accounts can have on your business. But small improvements on any account–invoice by invoice–drives powerful incremental revenue.
Make sure you know today’s baseline
Does your ERP graphically show you per-invoice profitability easily? Not revenue, but profit. This is a key measure because once you look across your book of business, you will clearly see the underperforming accounts. (Spoiler: if your ERP doesn’t provide you this information, Nowsight can, in real-time, by connecting all your data sources and systems in an easy-to-use dashboard.)
From this information, you should set a desired profitability target and focus your account reps/sales teams to work with these clients closely. The key now is to get real-time data, like you do from the Nowsight Sales Insights dashboard. Every invoice that comes in has the profitability highlighted and the sales rep is alerted when the threshold isn’t met.
Seeing is believing – and improving profitability
One Nowsight client has seen such success with this approach, they brought all their accounts to their desired profitability—and then raised the bar again! And because these are all existing accounts, each incremental dollar of profitability falls straight to their bottom line. This initiative alone is driving more than a 15% increase in profit.
Keep the momentum going
Once you see improvements, it’s important to make this part of your sales team’s standard operating procedures. If you leverage a tool like Nowsight Sales Insights, your team will receive automated alerts for all their accounts and your leadership team will be able to see a cross-company view of account profitability (where you can drill-down into the details, as needed).
To see the impact of improved per-invoice profitability, get a free week access pass to our Impact Calculator.