eyko Ideas
Revenue is not profit. Customer Profitability Analysis reads revenue against discounts and cost-to-serve to show which customers generate profit and which quietly lose it.
The Challenge
High revenue can hide deep discounts and heavy service that leave an account net negative.
Service, support, and freight costs rarely make it back to the customer line, so profit is guessed.
Sales chases the next logo while the existing book contains unprofitable accounts no one re-prices.
How eyko Solves It
Customer Profitability Analysis combines revenue, discounts, and cost-to-serve to produce true net profit by customer, surfaces the unprofitable accounts dragging the total, and shows where re-pricing or re-scoping recovers more than new volume would add.
After discounts and cost-to-serve, the top quartile of customers generates most of the profit, while the bottom decile is net unprofitable, dragging roughly 1.2M off the total.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Customer profitability analysis produces true net profit by customer, after discounts and cost-to-serve, rather than ranking customers by revenue. The Playbook shows that the top quartile generates most of the profit while the bottom decile is net negative, so the real profit league table looks nothing like the revenue one.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
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View IdeaFAQ
Everything you need to know about Customer Profitability Analysis.
Customer profitability analysis combines revenue, discounts, and cost-to-serve to produce true net profit by customer. eyko surfaces the unprofitable accounts dragging the total and shows where re-pricing or re-scoping recovers more than new volume would add, so the commercial focus follows profit rather than revenue.
The Playbook brings service, support, freight, and other cost-to-serve back to the customer line and nets it against revenue and discounts. That is the step manual analysis usually skips, and it is what exposes the high-service, high-discount accounts that look fine on revenue but are net negative on profit.
It reads revenue, discount, and cost detail by customer from your ERP general ledger and order data, alongside service and support cost where available and any data platform you already run. It works with systems such as SAP, Oracle, and NetSuite, and there is no separate data project to start.
Yes. The same net-profit decomposition runs by product and by segment as well as by customer, so you can see which products and which customer tiers carry the profit and which erode it. That makes the re-pricing and re-scoping decisions specific rather than blanket.
Join the enterprises replacing weeks of manual analysis with a single prompt. See what eyko Playbooks can do with your data.
