Challenge: A firm struggled to return to profitability after a sustained market downturn.
Solution: Analyzed customer database. Determined that 60% of customers cost more money than they produced in revenues — the client was actually losing $700,000 annually to retain more than half its customers.
Result: Recommended terminating small accounts or charging minimum-usage fees to recover some or all of the $700,000 annual shortfall.
My Role: Took the initiative to conduct the analysis. Found serious structural problems in client’s business model. Recommended alternatives to recover the shortfall and return to profitability.