New Concepts

Profit Optimization Strategies can consist of traditional methods as well as new ones. POS can perform all the traditional methods. Select the “Difference” button to see why we can perform these better than traditional consulting companies and vendors.

POS has developed some new concepts that set us apart from traditional companies. We developed the new concepts from years working in traditional companies and being in charge of day to day operations combined with working in some of the best analytical companies in the world. Select the “Associates” button to explore our backgrounds further and how they led us to develop or be a part of developing the following new concepts.

Today companies are only optimizing their tactical profits. They use customers as targets that they turn to when they need demand.

Optimal total long term profits can only be attained by optimizing strategic profits. Strategic profits can only be optimized by optimizing the lifetime value of each of your customers.

All of the activities across your company that interact with or impact your customers must be captured and analyzed. All company actions or interactions with each customer must be integrated and follow the same analytically derived plan that the company creates  to individually nurture each customer so that they attain their optimal lifetime value for the company. Having one analytically derived and shared view of the customer, their lifetime value, expected behavior and a plan to nurture them to generate their optimal lifetime value is the key to integrating all the companies actions and interactions for each customer based on that customer's needs. This is the only way to assure that everyone supports the same goals and understanding of each customer's value and how to nurture them.. Profit Optimization Strategies (POS) focuses on all the things that create this  “Customer Centric Profit Optimizationsm” (CCPO).

Customer Centric Profit Optimizaiton - POS has developed a methodology called “Customer Centric Profit Optimizationsm” (CCPO) for optimizing the lifetime value of each customer. CCPO can apply to any industry that can track customer behavior as well as being used on the supply side to track and optimize vendors/suppliers.

CCPO also integrates all the actions of RM, marketing, CRM and Loyalty around one analytical view of each customer to assure that they all nurture that lifetime value of the customer and no one uses the customer as a tactical or marketing target. CCPO relies on predictive analytics, organizational changes and common sense. CCPO can be automated and optimally applied using a pending patent. However, CCPO can be implemented without the automation that is enabled from the pending patent. A paper on CCPO explains further details.

Customer Centric Profit Optimizationsm utilizes:

    Customer Relationship Optimization - We want to optimize our relationships with our customers and not just manage them. CRM (customer relationship management) came from the days when the CRM was just it was a mailing database of customer names and addresses that had to be managed for mailing lists and segment selections. CRM supports the targeting of customer segments with “batch and blast” mailings. Today we need to move beyond the segmentation mentality of the 1970’s. Wherever we have enough information we need to treat customers as individuals.

    One to One Relationship Optimization - A process where we predict the future behavior of each customer, track their activity against our predictions, and interact with them whenever we notice an action that can be reinforced or deterred by an action that we have successfully taken before with another customer who had similar behavior.

    Bid Price Revenue Management - A customer centric form of pricing where limited supply is optimized against forecasted demand and prices are given to individuals based on their historical value as customers.

    Customer Behavior (Lifecycle) Forecasting - This concept is more fully explained in the pending patent in detail and its usage and impact on operations is explained in a paper on CCPO .

    Customer Analytics - It is amazing how different the desires and ratings of a product can be from what the management of the product thinks they are. Precise customer analytics is needed to ask customers what they want, what they think about what they are getting and how the product compares to competitors.

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