The Customer
A digital services business in the South of England.
The Problem
Our team analysed the customer’s ten largest clients checking for inconsistencies to ensure their incomings accurately reflected their team’s hard work.
During our analysis, we identified multiple concerns that not every service being undertaken was correctly charged for; Meaning our client was missing out on vital revenue.
The Solution
We undertook a full commercial review of their largest customers and worked with the commercial, operations and finance departments to:
- Cross-check the contracts with service output and the invoices being raises
- Identify any errors and omissions in their current pricing structure
- Identify any services being provided but not charged
- Calculate their true customer profitability – giving clarity on the largest clients and a benchmark for future invoicing
The Result
Through identifying pricing errors and refining their pricing structure, we were able to help generate £500,000 of EBITDA improvement for our client. Plus, a further £100,000 of potential service revenue from additional services undertaken, yet not charged.
Furthermore, our customer profitability analysis identified three loss-making clients. With renegotiated terms or serving notice, we improved the EBITDA by £300,000.