Cost-to-Serve

Time and again we are amazed of how limited information our clients have at their disposal when it comes to customer profitability. Even at companies performing at the top of their industry – sales strategy and management are still based on insufficient information on customer profitability. This is where our highly effective consulting approach comes into play: Our detailed cost-to-serve analysis is based on a clear understanding of cost drivers of the entire value chain from customer acquisition to customer service. Through consistent determination of cost drivers we are in a position to identify where profitability is gained and destroyed with regard to customers, segments, industries, products, etc. That is where the strategic process of our consulting service begins: Based on many years of experience, our consultants are able to develop effective strategies, increase profitability, and ensure their practical implementation.

This is how SDI differs significantly from other top-consulting firms:

    • Frequently, our clients’ profitability considerations do not reflect the actual complexity of customer interaction at all or only to a limited level of detail. We have developed our own detailed approach to pragmatically resolve this complexity and calculate the exact cost per customer, account, segment, etc.
    • In addition to our proprietary SDI methodology, we have detailed models for the precise definition of the actual profitability, which we adapt to the specific situation of our clients.
    • Following our market-leading approach, we work with each relevant client department to produce a clear picture of the cost structure and profitability of each individual customer.
    • After completing the cost-to-serve analysis, our clients are often surprised by the amount of unprofitable and low-profitability customers and the resulting margin uplift potentials, which we then leverage together with our clients.