The "Profit Opportunity Map" (POM) allows businesses to gain in-depth understanding of their market base and profitability.
Tackling After-Sales – Where's the money?
The first step in making money from after-sales is to understand your market and locate profit-opportunities. Why? Well, consider the alternative:
Also Known AS:
The alternative is therefore to target profit opportunities that you can assess the potential gains vs. the investment required and decide rationally to approve or revise:
Using this approach makes sure you go after the big-fish first and use resources proportionally to the expected gain.
Questions such as:
o Where am I losing customers?
o How much money am I losing from low maintenance rate?
o What is my market share in damage repair parts?
All get answered in multidimensional detail – by vehicle type, vehicle age, entry type and part type.
In the following example, a matrix of entry rate (actual entries per car / potential entries per car) is used to target segments for marketing programs and to asses the profitability of such programs.
Examples from The POM BI Tool
One Glance overview of performance and opportunity
Structured analysis (drill-down) with methodology extracts
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