sxsphinxstack

Skills / Working / Analyze customer profitability

Working Data skill

Analyze customer profitability

Analyze customer or segment profitability using net revenue, direct costs, cost to serve, and transparent shared-cost allocations.

Make cost attribution and decision boundaries visible before ranking customers.

When to use

  • Use for account planning, pricing review, capacity decisions, or segment economics.
  • Do not automate harmful treatment, deny essential service, or proxy for protected traits from a profitability score.

Preconditions

  • Confirm decision scope, permitted customer data, reporting period, currencies, and approved cost-allocation policy.
  • Reconcile revenue, refunds, direct costs, support, fulfillment, and payment data.

Procedure

  1. Define customer identity and related-account mapping at a stable grain.
  2. Calculate net revenue after discounts, credits, refunds, rebates, taxes, and revenue sharing.
  3. Attribute direct product, fulfillment, payment, returns, onboarding, support, and customer-specific infrastructure costs.
  4. Allocate shared costs only where a defensible driver exists; show unallocated and alternative views.
  5. Calculate contribution dollars and margin by customer, cohort, product, channel, and tenure.
  6. Adjust comparisons for contract stage, implementation period, seasonality, currency, and one-time events.
  7. Reconcile aggregated revenue and costs to approved financial reports.
  8. Test sensitivity to allocation, support-cost, churn, and renewal assumptions.
  9. Combine financial evidence with contract, strategic, service, fairness, and capacity constraints before recommending action.

Worked example

A large customer appears unprofitable after equal allocation of all corporate overhead. A driver-based view shows the account has high onboarding cost but positive ongoing contribution. The report separates temporary implementation cost, shared overhead, and recurring service cost, then recommends a renewal and support-design review rather than an automatic termination.