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Client: A $50 million/year national distributor of telecommunications equipment and telephone system components. |
Challenges: During the recent recession, another large telecommunications equipment supplier launched an aggressive effort to gain market share at the expense of our client and other suppliers. However, the recession had triggered severe cutbacks in our client's marketing, advertising, and sales department budgets. With limited resources, how could our client fight off this competitive threat?
Solution: Moving quickly was essential. First, Management Analytics Group designed and developed a database specifically for marketing use. Next, we developed a statistical model that described the buying patterns of each customer segment as a group. Finally, we compared the buying patterns of each individual customer in each segment to the "group profile" for that segment. The analysis highlighted only those customers whose buying behavior patterns were suddenly and significantly different from the norm for their segment. This series of comparisons provided a "hot list" of customers each month who the few remaining salesmen contacted to learn why the customer's buying habits had changed.
Result: With Management Analytics Group's help, our client discovered the competitor's aggressive strategy and countered with their own efforts to retain their best cusomers. By spotting customers before they had stopped buying entirely, our client knew exactly where to focus their retention efforts. This stretched their limited resources and retain most of their market share.
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