Profitability modeling and optimization includes activity-based costing (ABC) applications that determine and allocate costs at a highly granular level to determine the cost of each task (activity) that an agent may perform across all channels in a customer service contact center.

Profitability issues should be considered from different angles such as:

• Market conditions and trends (growth/new products/substitute products/new technologies);
• Product/customer/market/channel segmentation;
• Pricing policy;
• Organization and processes.

We can help you to determine the underlying profitability-related issues by analyzing the following questions:

• Who are our least and most profitable customers?
• What are our least and most profitable products?
• What are our least and most effective channels or markets?
• Is our company well positioned to address the customer’s value perception?
• Is our company competitive in terms of products, pricing, services and supply chain performance?

Increasingly, profitability-modeling applications are focusing on profit optimization capabilities that enable executives to see the impact of different strategies on profitability from different perspectives, such as customer or product.