“The price of light is less than the cost of darkness”
Arthur C. Nielsen (pioneer of modern marketing)
As a result of these findings we were able to develop a scoring model for our client based on key data points and trends.
The model is now used by our client to score and forecast performance and profitability of accounts before formally accepting the instruction / placement. Our client can now dictate what commission / commercial arrangement they will work under based on the forecasted performance and quality of the work and be more selective of the work they take.
This in turn allows our client to maximise their profit through reducing costs historically wasted on accounts that had little or no chance of contributing to their revenue.
Arthur C. Nielsen (pioneer of modern marketing)
Challenges facing our client:
- A contingent business model – i.e. no success = no revenue
- 20 years’ worth of data but no analysis as to the trend for successful accounts
- New business always accepted based on quantity, not quality due to the latter being unknown
- Commission and revenue varied dependent on their client, not based on the quality
The solution:
Our BI Team interrogated and analysed the client’s abundance of data and established the following key findings:- Only 33% of work taken on by our client was profitable
- Customer demographics and behaviours pointed towards a performance trend and profitability – i.e. the likelihood of success and the effort and cost required to be successful
As a result of these findings we were able to develop a scoring model for our client based on key data points and trends.
The model is now used by our client to score and forecast performance and profitability of accounts before formally accepting the instruction / placement. Our client can now dictate what commission / commercial arrangement they will work under based on the forecasted performance and quality of the work and be more selective of the work they take.
This in turn allows our client to maximise their profit through reducing costs historically wasted on accounts that had little or no chance of contributing to their revenue.
