Do you know how much money you are wasting on inefficiencies inside your customer base? On today’s show, we’re learning all about the Customer Profitability Framework and what you can do—today—to make a real impact on your bottom line while also increasing the value of your business. If you don’t understand your customer profit curve or how to reduce your margin leakage, we’ve got the show for you today. Our guest is David Aasen—the customer profitability master—who has been the CFO of multiple private businesses, as well as private equity firms. Learn from specific case examples like the table story, which explains how 20% of our customers drive more than 150% of our profits, and the discount story, where David walks us through the real impact of 'harmless' customer discounts. This episode is a bit more on the tactical side, but the real-world examples drive the essential points home so anyone from a C-suite exec to a three-time founder will appreciate how these metrics impact your bottom line.

 

What You Will Learn In Today's Podcast Interview

How to drive profitable growth and reduce margin leakage

What the Customer Profitability Framework is and why you should be using it

You can think customer are profitable that are actually costing you money

How customer profitability can be as much as 3x off what the owner thinks

Inefficient processes are like an anchor holding your ship back

Why you should rethink how you’re assigning costs

Who you should be giving discounts and price concessions to versus the ROI on those price discounts

How to find where your margin is leaking

The importance of getting real data to understand your efficiencies and risks

Why you should track the time of anyone who has impact on clients or customers

What business owners can learn from lawyers when it comes to charging clients

The power of context to bring an idea into focus

Why lower customer complexity has real dollar value for your company

Averages are misleading and you need to be calibrating for each client for success

 

Are You Growing The Value of Your Business

Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.

Are your company's current initiatives intentionally designed to increase the value of the business?

Do you know what you want from your business long term and why?

Do you know what your company is worth?

Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?

Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?

 

About the Guest:

David Aasen – the customer profitability master – has been a CFO of multiple private businesses as well as Private Equity firms. At 23, David was hired as a CFO for a $50 million global company. That experience shaped the trajectory of his career. He went from guessing what to do to developing exceptional technical skills and a stellar, well-stocked tool kit of operational finance best practices (top 10%) that demonstrates a mastery of his craft.

David speaks the language of owners and value creation. His Customer Profitability Framework is well-known for helping owners find inefficiencies in services and costs of their customers. Under his financial leadership, Northern Metal increased revenue 2X and EBITDA 3X in 7 years; Norcraft increased revenue 3X and EBITDA 4X in 5 years. 

 

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