How to Find Your Most Profitable Customers
In the last blog post we talked about the 80/20 principle and how a slim 20% of your customers are probably making about 80% of the profits in your company. In this post we’ll explore how to use CLIP and Microsoft Excel to find your most profitable customers.
CLIP is already built to show you who your most profitable customers are per hour using the job costing report. What we want to find out here is how to show which customers produce the most (volume) profit overall.
To do this we will export the job costing report to Microsoft Excel, then add a couple of formulas into Excel.
The following is a brief overview and the detailed instructions are linked to at the bottom.
Find The Customers That Make the Most Profit for You
1. Prepare a job costing report in CLIP using whatever criteria you should choose (only mowing, all services, date range, etc.)
2. Export this report to Excel.
3. Create a formula to calculate the profit per hour (PPH) for each customer. The formula for this will be:
4. Create a formula to determine Percentage of PPH
5. Create a formula to find Total Profit per Customer
Click here for the detailed instructions.
This may seem a little intense but knowing this information is truly worthwhile. And, if you follow the detailed instructions in the link below, it will not be difficult to calculate this.
PLEASE, if you have any questions or comments email editor@clipblog.net.
Application Action: First, follow the steps in the guide to find your most profitable customers. Then make it your #1 “to-do” priority to call the top 10 profit producers to thank them for their business and ask if there is any way you can help them.
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