8% potential increase in net profit, through opportunities within client portfolio
Client performance analysis.
The firm were keen to understand the profitability of their clients and eradicate working practices that resulted in low value work.
How did we help?
We analysed the firm’s billing records to segment their clients into meaningful groups based on fees and profitability. By comparing these groups, we quickly identified important clients and targeted actions across groups, helping to recognise opportunities for behavioural improvements and a significant potential for increased profitability.
- Identified the reliance on the key clients of the business
- Identified problem clients at every level of value Partners can:
- Target problem clients with focused actions, providing a better service at a profitable level
- Improve recovery to directly impact the bottom line
- Eradicate low-return work
- Identify bad billing practices in the firm
- Have a clear overview and understanding of the client base
“The analysis performed by the Ecovis data analytics team delivered some results that were surprising and worrying to us. Along with shining a new light on our most important clients, the client segmentation framework they presented uncovered a significant subset of unprofitable clients, and quantified the striking overall effect of marginal gains to be realised from improved working practices. We were presented with a potential opportunity to improve net profit by up to 8%.
Our management team has been set on a course of enhanced decisionmaking, supported by the data analysis that Ecovis provide. Data analytics is now an inherent part of our strategy.”
Managing Partner, Stephens Scown