The main aim of a business is to earn profits. Thus a company has to attract and retain those customers who are profitable. This is known as profitability analysis or customer profitability analysis (CPA). An analysis of cost and revenue of the firm which determines whether or not the firm is profiting is known as profitability analysis. The 20-80 marketing principle says that 80% of the profits arrive from 20% of customers. Richsoft services enable you to analyze costs, revenue and profit margins for each combination of characteristics at an aggregated level. However, detail controlling takes place by means of the service contract, service order or the service project. Mixed forms are also possible.
Richsoft Profitability Management is an analytic application that models business processes to accurately determine process, product and customer cost and profitability. With this solution, you can make informed decisions to streamline processes, deliver revenue growth and reduce costs across the organization.