Customer Profitability Analysis
The Customer Profitability Analysis uses Infor Artificial Intelligence (Infor AI) to analyze customer behavior and identify customers that have a positive or negative impact on profitability. This solution was previously known as Customer Ordering and Profitability.
The reports use customer invoice data from your ERP system. By default, the analysis is based on a rolling 12‑month period, but you can adjust the coverage period to meet your business needs. You can also schedule report processing to run at regular intervals, such as weekly, monthly, or quarterly.
The Infor AI machine learning quest uses Multi-Criteria Decision Making (MCDM) algorithm to score customers based on these criteria:
- Invoice Total: The aggregated invoiced amount.
- Margin: The aggregated margin calculated from the invoiced amount after deducting all costs.
- Cost to Serve: The average cost of serving the customer, calculated by dividing the aggregated invoiced amount by the number of transactions.
The Customer Profitability Analysis dashboard includes reports that you can filter by year, month, division, or tier.
This table describes the reports and KPIs available on the Customer Profitability Analysis dashboard:
| KPI, report | Description |
|---|---|
| Customers with Score | Shows the number of customers by score and tier for the selected month. |
| Customers without Score | Shows the number of customers that do not have a score for the selected month. |
| Invoice Total by Tier | Shows the distribution of invoice totals across customer tiers. |
| Customer Tier Distribution by Month | Shows the number of customers in each tier for each month of the selected year. |
| Customer Details | Shows customer details, including the assigned sales representative, current and previous tiers, scores, invoice totals, cost to serve, margin, and number of transactions. |
Customer tiers are determined by score thresholds configured in the Machine Learning quest.