Origin of Cohelion: The action of process of multiple independent parts to become aligned around a central theme. Used in Astronomy and in Information Theory

Introducing our new business solution: Customer Profitability

This month we released our new business solution: Customer Profitability. With this out of the box solution it is possible to calculate important profitability statistics and directly generate ad-hoc reports tailored to your organization by dividing indirect and overhead costs over all your customers in a fair and traceable way.

Knowing which customers are profitable and which ones are not, is important for any business.

However, it is surprisingly difficult to find out. Revenue per customer is often easy to find out, as are direct costs. But how to allocate indirect or overhead costs over your customers, like payroll costs? Or Rent? Or Marketing costs?

With the Cohelion cost allocation engine you can define what share costs to assign to any customer using different cost drivers. Payroll cost can be shared as a fraction of value of repairs, rent as a fraction of sold products and Marketing costs as a ratio to revenue of each customer. This allows you to assign costs objectively, and determine profitability per customer.

The Customer profitability module lets you create many cost allocation profiles, so you can run what-if scenario’s.

Besides customer profitability, it can also be set up to calculate profitability per office, product or sector. Find out more on Customer Profitability