Two accounts bill £40,000. One of them earns nothing.
Revenue per customer is measured everywhere. Cost to serve is measured almost nowhere, and the spread between customers is usually far wider than the spread in price.
SBy Steve··5 min read
Most businesses can tell you, to the pound, what each customer paid last year. Very few can tell you what each customer cost. The result is a familiar and uncomfortable pattern: two accounts of identical size, on identical terms, contributing wildly different amounts to the bottom line, and no report in the business that shows it. The gap is rarely caused by discounting. Discounting is visible; it appears on the invoice and someone had to approve it. Cost-to-serve dispersion is invisible by construction. It accumulates in hours nobody billed, calls…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.