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Sikich

It’s Just as Important To Know Your Worst Customers, as Well as Your Best


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Knowing your best products and customers will provide you with the data to optimize sales, improve cross-sales and up-sales, as well as provide superior customer service.  While we may not want to face our less-than-ideal customers, it’s very important and can impact our bottom line.

How do you know who your best and worst customers and products are at any given time?  Your gut instinct might tell you one thing, but when you take the time to put real numbers to what you do best, would your figures match your gut feeling?  Probably not.  Comprehensive business management software, such as the Microsoft Dynamics® ERP suite of software solutions, can provide visibility into your financials so you can determine your best customers and products.  Insight into the true value and expenses of the products or services you provide can help you separate profit margins from gross profits.

Your best customers will pay on time and, when provided superior customer service, will come back for more.  Customer sales history, contract terms and other personalized information can be stored in Microsoft Dynamics ERP.  The ability to quickly generate a report regarding the products or services that a customer chooses will enable you to offer complementary products or services.  Finding opportunities to increase cross-sales and up-sales will improve your revenue, while providing added customer service and generating customer loyalty.

On the other hand, late-paying customers, or those who regularly over-extend their credit could actually cost you more money in the long run.  Late fees and other penalties aren’t always enough to make up for a cash-crunch situation that late payers can cause.  If there are more late payers than good-paying customers, you risk not having the cash flow to meet your financial obligations or make investments in assets or opportunities that will grow your business.  In addition, spending too much time with collections is a distraction from spending time with customers and generating new business.  Microsoft Dynamics ERP will streamline the accounts receivable processes to make it easier to collect payments and control credit levels so you spend less time chasing collections.

Microsoft Dynamics ERP offers deep visibility into your customers and the products and services you provide.  Pursuing the most profitable avenues and best customers is important, but making important decisions about the less optimal customers or products is equally important.  Contact Sikich for more information about Microsoft Dynamics ERP and how you can get the insight you need to grow your business.

By Sikich, Microsoft Dynamics ERP Partner based out of Missouri

 

2 Responses to “It’s Just as Important To Know Your Worst Customers, as Well as Your Best”

  1. Vanessa says:

    You’re best and happy customers will also refer other customers your way and in most cases would be happy to be a reference for you.

  2. Great to know your worst customers.