EightyTwenty+ guide
Customer profitability analysis: which customers create value, not just revenue?
Customer profitability analysis compares customer revenue with recorded cost and margin. It helps reveal where the largest accounts and the most profitable accounts are not the same.
Start with customer revenue ABC
Revenue remains an important size measure and provides the clearest starting point for concentration.
Overlay margin rather than replacing revenue
A Revenue ABC × Margin Rate ABC matrix makes the mismatch visible while keeping both measures transparent.
Investigate the product mix and ordering pattern
Margin alone does not explain why a customer looks different. Product mix, dependencies and order intensity can provide the next layer of evidence.