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Study reveals drivers for higher revenue and profitabilitySAS® performance management capabilities help deliver profitable revenue growthCARY, N.C. (Mar. 06, 2006) – Research sponsored by business intelligence leader SAS has found ways that top U.S. companies analyze customer transactions to produce higher revenue and profitability. The study, conducted by the American Productivity and Quality Center (APQC) and CAM-I, will be issued in April. Titled “Calculating and Reporting Customer Profitability,” the study examined best practices from leading U.S. companies and revealed the ways successful organizations use customer profitability insights to drive profitable revenue growth. A key finding is that “best-practice organizations capture revenues and costs at the transaction level for each specific customer account, regardless of how many customers they had.” Other companies only capture average or high-level costs, a practice which fails to provide accurate or useful profitability information about individual customers. Another key finding is that best-practice organizations developed an enterprisewide view of the customer by integrating customer data and applications across divisions. For example, since marketing owns customer profitability insights and finance produces customer profitability calculations, these departments achieve higher levels of success if they work together. Understanding customer value in any customer-centric industry requires profitability analysis at the individual relationship level. Most traditional costing and profitability software cannot integrate and analyze the massive volumes of data from multiple data sources and business processes down to the individual customer account level. SAS provides unmatched value in the area of high-volume profitability analysis. SAS® Activity-Based Management, a key SAS performance management offering, enables businesses to analyze customer transaction histories, calculate profitability for up to hundred of millions of customers, perform multidimensional analysis – by customer, product mix and channel – and deliver customer profitability insights to the right business units at the right time. Research from First Manhattan Consulting Group says retail banks lose money on up to half of their customers and that 75 percent of cross-sold accounts are not profitable, a frequent result of an inaccurate understanding of customer profitability and the behaviors that affect profitability. A free white paper by SAS and Peppers & Rogers Group offers advice on ways to measure and analyze customer value and achieve competitive advantage. The integrated SAS performance management capabilities, built on SAS Enterprise Intelligence Platform, enable companies to calculate customer profitability, derive customer insight and execute customer strategies. SAS offers these and other targeted business solutions as well as turnkey solutions for vertical markets. APQC is a recognized leader in benchmarking, best practices and quality programs with more than 500 Global 1000 member companies. CAM-I is an international consortium known for its activity-based costing research.
SAS is the market leader in providing a new generation of business intelligence software and services that create true enterprise intelligence. SAS solutions are used at 40,000 sites – including 96 of the top 100 companies on the FORTUNE Global 500® – to develop more profitable relationships with customers and suppliers; to enable better, more accurate and informed decisions; and to drive organizations forward. SAS is the only vendor that completely integrates leading data warehousing, analytics and traditional BI applications to create intelligence from massive amounts of data. For nearly three decades, SAS has been giving customers around the world
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