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Client: A $15 million manufacturer of OEM control panel components. |
Challenges: The new marketing manager was struggling to get average sales (total sales/total customers) up to industry averages. He discovered that the company’s sales tracking system was telling a very different story than their financial accounting system – and both were telling a different story than the sales team. Financial resources were limited, performance goals were ambitious and time was short.
Solution: Management Analytics Group standardized and cleaned up the customer data in the sales tracking system and did the same for the data in the financial accounting system. We discovered that the two systems sometimes double and even triple-counted certain customers. We also discovered that many prospects were being counted and treated as established customers. This seriously distorted the company's picture of their average customer and sales penetration. With real data, Management Analytics Group calculated the revenue potential for each sales region and discovered that the sales improvement objectives adopted by the company were not realistic.
Result #1: Management Analytics Group helped fix the problems that had inflated its customer counts and distorted average sales. This let management set realistic sales and profit objectives and establish sales territories and commissions fairly.
Result #2: With new and realistic understandings of their customers, the shifted its entire marketing strategy. It had sales teams focus upon the 2,000 or so "real" OEM customers and set up a web-based store to sell replacement parts profitably. They stopped sending catalogs to the "phantom" customers and used the money saved to pay for more effective promotions.
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