Case Study: Leading European Electronics Goods Retailer boosts profitability with Quantzig customer profitability analysis

Driving Sustainable Business Value with Customer Profitability Analysis

Leading European Electronics Goods Retailer partnered with Quantzig to revamp its product pricing and promotion strategy using customer profitability analysis. The retailer wanted to identify cost-saving opportunities, improve CapEx allocation decisions, and reduce asset mismatches, as it was spending more than 10% of sales on acquiring assets and had close to 8% of non-performing inventory.

Quantzig implemented customer and product profitability analysis, decomposing costs to the product-code level and identifying the most profitable customer groups and five product categories that drove profitable growth. Based on Quantzig’s insights, the retailer changed its pricing structure, redesigned cross-sell and up-sell strategies, and prioritized “cash cow” products for promotion, helping it better target profitable customer segments and improve sales strategy.