68. Customer Profitability Analytics (CPA) for Reinvention and Amazon-Proofing

On June 29th, I did a one-hour webinar for the Health Industry Distributors Association (HIDA.org) on Customer Profitability Analytics (CPA) for Reinvention and Amazon-Proofing. We had 118 folks from 60 different companies sign up, and 85 from 40 companies attend. 60% were HIDA members, and 40% were distributor friends from other channels. And, most of these HIDA guests have been pursuing the webinar’s title themes and likely skewed the three survey-question results below.

We did survey questions upfront to reveal a bi-modal audience regarding: CPA; Rep compensation; and open-book management (with potential gainsharing) for all. The chasmic results were:

  • 47% were getting traction with CPA; 31% had never even experimented with CPA
  • 31% incented reps on customer net-profitability; 39% paid on gross margin dollars
  • 63% practiced Open Book with all employees; 35% were quite closed

Thanks to HIDA’s generosity, you can watch the taped webinar (link at the end). During the initial 15-minute polling exercise, I offer commentary both before and after each question. Simply put, CPA reveals stark reinvention opportunities that require both re-compensation and re-engagement of all employees.

And, for the ensuing 45-minute presentation, I have yet to see the final evaluation scores. But, nobody signed off before the end where I offer follow-up, in-depth, educational options. Due to time constraints, I highlight key concepts and tools, that every distributor must master to complete a 10-step CPA journey to everyone-wins economics.

The Follow Up

Therefore, to fully air out the presentation, I’m envisioning an all-day seminar, with the working title of: “The Customer Profitability Journey”. The plan is to offer the show in about 15 N. American cities starting as early as late fall. I’m hoping to get many co-sponsors (trade associations; etc.) to keep registration costs for their respective constituents as low as possible. In conclusion, if you have interest, please let me know at bruce@merrifield.com.

Otherwise, I hope to see many of you at one of the two, Advanced Profit Innovation Conferences this fall in: Phoenix 10/16-17 (apicconference.com); or Toronto 10/26 (apicconference.ca).

In case you missed it, you can go here to watch the HIDA webinar.

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