standard economic 80/20 rankingsThe customer ranking program is a sales performance and credit management tool that analyzes customer sales activity and assigns up to seven levels of rank for up to five different ranking methods. In addition, you can use the customer rank to alter a customer's price if you use the customer velocity pricing on a sell matrix. You can save different customer ranking work IDs and either run the process now or schedule it to run on a regular basis, for example, once a month.
After you run the program, you can view a customer's ranking information in A/R Inquiry from the Inquiries menu or in Customer Maintenance from the Additional menu. For more information on this screen, see Customer Ranking Details.
To rank customers:
From the A/R > Utilities menu, select Customer Ranking to display the Customer Ranking window.
In the Work ID field, enter a name for the work ID or select from a list of work ID names to display an existing customer ranking work ID.
Note: To create a new set of customer ranking parameters, click New Ranking. At the new Work ID prompt, enter the name of the new work ID and click OK.
In the Branch/Territory field, enter the branches or territories for which you want to generate a report. Enter ALL to generate reports for all branches and territories.
In the Overwrite Manually Set Customer Ranks area, select Yes if you want the ranking utility to overwrite a manually entered rank. Default is No.
In the Ranking Method area, in each Rank level field, select one of the following ranking methods:
Note:Not all rank fields must be populated. Based on your business needs use up to five ranking methods.
Ranking Method | Sorts in... |
Gross Sales $ (12 Mths) | descending order with the greatest dollar amount being given an A ranking and the least amount being given an E or lower ranking. |
Gross Profit $ (12 Mths) | descending order with the greatest dollar amount being given an A ranking and the least amount being given an E or lower ranking. |
Gross Profit % (12 Mths) | descending order with the greatest percentage being given an A ranking and the least percentage being given an E or lower ranking. |
Avg Weighted Days to Pay | ascending order with the lowest number of days being given an A ranking and the highest number of days being given an E or lower ranking. |
Avg AR Balance | ascending order with the lowest balance being given an A ranking and the highest balance being given an E or lower ranking. |
Transaction Ct (12 Mths) | descending order with the greatest number of transactions being given an A ranking and the least number being given an E or lower ranking. |
Avg GP$ per Order | descending order with the greatest dollar amount being given an A ranking and the least amount being given an E or lower ranking. |
Avg Sales$ per Order | descending order with the greatest dollar amount being given an A ranking and the least dollar amount being given an E or lower ranking. |
Note: Two of the ranking methods, Average Weighted Days To Pay and Average A/R Balance, are appropriate to credit management. Credit Management should consider devoting one or two of the eight possible rankings to reflect their customers' credit ranking as well as their sales performance.
In the Ranking Breakpoints area, starting with the Top field and continuing with successive Next fields, enter the percent of customer activity to assign to the corresponding rank. The percentages must add up to 100.
Most distributors use the standard economic 80/20 rankings
Do any of the following, as needed:
To... | Use this option.. |
run the calculation program | File > Begin |
save the template displayed on the Customer Ranking screen as a Word ID | File > Save The system prompts you to enter the Word ID. |
delete the displayed Word ID | File > Delete The system prompts you to confirm the deletion. |
schedule the program to run later | Options > Schedule The Phantom Scheduler screen displays. This program is often set up for the evening following the end of the month, and to repeat each month. |
See Also: