GPI 260 – Identify and target your ‘bottom rung losing customers’ every month.

If your accounting department does nothing else but just pay bills, payroll and taxes, make sure they prepare a list of your customers in order of net profit, highest to lowest each month.  Target the biggest losing customers (net gross profit or net profit losses) on this list each month and inform the respective sales representatives that these accounts must be turned around.  Know which customers are losing your firm money and determine your alternatives to cut out these losses (i.e. Selective price increases, dump losing products/services, offer better pricing with higher volumes, review a product design for cost reduction, etc.).  Keep this list available for review on a regular basis.