Profitability Analysis Software
Profitability analysis software that shows what you really earn on every product, customer and channel, and why.
What Is Profitability Analysis Software?
Profitability analysis software allocates costs and revenue across products, customers, channels and other dimensions to calculate the true margin each one generates. The allocations follow cause and effect, so each product, customer or channel carries the costs it actually triggered rather than an averaged share.Â
Profitability analysis software also enables you to analyze margins of combinations of dimensions, for example margin per product-customer combination or per channel-product combination, or even at individual transaction level: the margin of one product sold to one customer via one channel.
Why Many Profitability Numbers Are Misleading
Most profitability figures are calculated in one dimension: cost per product. But not every cost is caused by the product. Support calls are caused by the customer, packaging and shipping by the order, and a campaign by the market it ran in. A product generating 4% of revenue can sit behind 30% of the support calls.
Spreading non-product-related costs evenly across units won’t show you what products, customers and channels actually earn.
A profitability figure is only as good as the allocation behind it. Costs have to follow what caused them, which means allocating to customers, orders and markets as well as to products. That is what CostPerform is built for.
Why CostPerform?
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Profitability by any dimension
Product, customer, channel, branch, and region. See the profit on each, or on any combination of them. -
Nothing is a black box
Every allocation can be explained at every step of the model, so you can stand behind every number. -
Model any cost allocation method
Activity-based costing, time-driven ABC, direct costing or multi-dimensional costing. Start from an industry template, or build your own. -
Unrivaled expertise in cost allocations
CostPerform has 25+ years experience in implementing cost allocation solutions, with experienced consultants based in the US and Europe. -
Extensive training and support
We provide dedicated training through our CostPerform Academy, while our partners guide you seamlessly through the implementation.
"CostPerform has transformed our regulatory reporting, allowing us to deliver precise network component profitability analysis. What once took months is now streamlined, providing clear, actionable insights to manage costs more effectively."
– Martin Pallot, Finance Business Partner at JT Group (Telecommunications)
Most Important Profitability Analysis Software Features
Analyze profitability by product, customer and channel
Uncover value leakage and the true cost to serve
Trace every margin figure back to the general ledger
Run scenarios and impact analysis before you commit
Analyze Profitability Across Every Dimension
No product, market or channel should be subsidizing another without you knowing. Multi-dimensional costing allocates costs to the dimensions that caused them, and then to the individual sales transaction, so you can read profit on any dimension or on a combination of them.
Product Profitability
Calculate what each product really earns you. CostPerform’s product profitability analysis weighs the full cost of making and selling a product against its revenue, so you can reprice, rebalance your product mix, and back the lines that pay.
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Customer Profitability
Find out which customers and segments actually yield profit. CostPerform’s customer profitability analysis allocates cost to serve to the customer who caused it and plots the result on a whale chart, so you can see which segments to invest in, which to grow, and which to step back from.
Channel Profitability
Wholesale, webshop and in-store sales cost very different amounts to serve, and unit costs hide it. A wholesale order drives packaging, transaction and shipping costs once, however many units it contains. CostPerform allocates those costs to the channel that caused them, so you can see which routes to market are worth serving.
Branch, Region, and Any Other DimensionÂ
See margin by branch, department, region or account. CostPerform shows the combinations too, not one dimension at a time, so a bank can compare profit per branch and per customer account at once, and see which parts of the organization generate profit and which absorb it.
See Why A Product Or Customer Is Unprofitable
A margin figure nobody can explain is a margin figure nobody acts on. When a product line or an account comes back unprofitable, the next question is always why: which costs landed on it, on what basis, and whether that basis holds up.
With CostPerform there are no black boxes. Start from a margin figure and roll it back through every allocation step to the general ledger line it came from, or start at a cost centre and drill down to the products and transactions it ends up funding. Methodology changes are tracked too, and that same transparency is what banks rely on for regulatory reporting, IFRS cost reporting and funds transfer pricing.
Model What-If Scenarios Before You Commit
Put a figure on the pricing, product mix and volume decisions you would otherwise base on guesswork. Set the expected change for each input, run the scenario, and see the effect on costs, margin and headcount.
Take a bank moving its lending from branches to online. Online volumes go up, branch volumes go down, and front-office capacity has to follow. CostPerform models all three together, so you can see what happens to cost per loan and to margin before the decision is made.
Proven In the Field: Profitability Analysis in Banking and Telecom
Profitability Insights Per Department at Texas Capital Bank
Texas Capital Bank brought in CostPerform to add transparency to its financial operations. It now tracks profitability by department, with profit insight per customer and per account, so it can see both the sources of revenue and the drains across the business.
Read the Texas Capital Bank case study »
From gross margin to EBIT at JT Group
JT Group, a global telecommunications firm, had no other allocation system and no ERP capable of product profitability. With CostPerform it produced its first product profitability on the same product set it uses for management accounting, and moved from a gross margin view to net margin at fully allocated cost, reconciling down to EBIT.
Telekom Srbija on Profitability and Operations
Telekom Srbija uses CostPerform to gain clear visibility into operations and profitability, supporting new use cases, market expansion, and real-time efficiency insights through fast-tracked ETL.
FAQs about Profitability Management Software
Why use dedicated profitability analysis software?
A spreadsheet can calculate a margin, but not multi-step allocations across thousands of products, customers and channels, with the same driver logic every month and a record of where each number came from. Dedicated software does the allocation itself, reports profit on any dimension rather than one view at a time, and lets you test a pricing or mix change before committing to it.
How granular can CostPerform’s profitability analysis get?
Down to the individual sales transaction, and from there to any customer, product, order, account or channel. CostPerform handles very large numbers of dimensions and transactions, so in practice the limit is the detail in your source data rather than the software.
Can CostPerform connect to our source systems?
As long as your data sits in an accessible database, yes. CostPerform’s ETL pulls cost and revenue data from your ERP, billing platform or data warehouse, transforms it ready for modelling, and pushes results back out to Power BI, Tableau or Excel.
How does CostPerform compare with an FP&A platform for profitability analysis?
FP&A platforms are built around planning and forecasting, with cost allocation as one capability among many. Cost allocation is what CostPerform is designed for, which matters when your cost structure is complex, when your organization does not fit a standard template, or when every number has to be explained to a regulator. You do not have to choose between them: CostPerform results feed your planning and BI tools.
