Create customer ranking criteria

Inform ERP calculates a number of points for each of the metrics that you choose to include in the rank calculation. The points are multiplied by the weights associated with the metrics and added together to determine a value for the customer. This value can range between 0-100. Using the Spreads setting, you can define the rankings to a range of values: A,B,C, or D.

To enable customer ranking, you must enable the customer ranking job.

1. Go to Utilities > Phantom Monitor.
2. Click the Scheduled Jobs tab.

   

3. Find the job Customer Rank Update.
4. In at least one day slot, set a time at which the job should run.
5. Click Save.

View specific customer rankings on the Customer Ledger.

1. Go to File > Customer > Master.
2. In the Customer box, type or select the customer whose ranking you want to view, then press the Tab key.
3. Click the Ledger tab in the left side navigation bar.

   

4. Check the Rank and the 12 Month Rank information to the right of the page.

1. Go to File > Customer > Ranking Criteria.

   

2. Click the Edit button.
3. Decide which criteria to use in the calculation:

   Recency: Number of days since the most recent invoice. The lower the better.

   Invoices: The total number of invoices in the past 12 months, The higher the better.

   Sales: The total merchandise sales dollars in the past 12 months. The higher the better.

   Profit: The total profit dollars in the past 12 months. The higher the better.

   Days: The average pay days of the customer. This number is calculated based on the aging days of the invoice and the payment date. You can find it in the customer ledger. The lower the better.

   Lines Shipped: The total number of shipped line items in the last 12 months. The lower the better.

   Note: If you want to rank a customer higher for doing more business with you, then you should use the Number of Invoices or the Lines Shipped, but not both as they are opposite approaches. 

4. Now define the ranking metrics for the point values 1-10.

   This range determines the number of points the customer will receive (which will be used to determine their final ranking). In the example below the Sales amount ranges from $30,000 to $1,000,000. A customer with a total sales amount less than $30,000 will not receive any points. A customer with a total sales amount between $30,000 and $49,999.99 will receive 1 point. Customers with sales greater than $1,000,000 will receive the maximum of 10 points for the Sales metric.

   

5. Now assign the Weight each variable has in the calculation under the Weights section (shown below). The weights must add up to 100%. If you do not want a metric to be used in the calculation, set the weight to zero. This amount will be multiplied by the number of points earned for the metric and then multiplied by 10. All outputted values are then added together to calculate a total numerical rank.

   

   In the example above, Recency is weighted at 10%, Invoices at 0, Sales at 35 and so on.

6. Define the Spreads. When the system calculates the rank for a customer, it adds together all of the point values after they have been multiplied by the weight for a total numeric rank. The spread tells the system what letter rank that number corresponds to on a sliding scale. In the example shown below, A ranked customers have a total numeric rank value between 80.01-100.

   

7. Click Save button. The calculation will be reflected in the ranks of the customers on the following day, after the rank recalculation runs overnight.