Customer profit improvement begins with knowledge of how customers make the profits that you are going to improve: how they make their money right now. This is the starting point for Consultative Selling. Unless Consultative Selling strategies can improve the profits a customer can make, the customer will not be a prospect for high-margin sales.
A customer makes money based on five principles:
- Circulating capital
- Turnover
- Contribution margin
- Return on investment (ROI)
- Payback