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Client: A $9 billion chemical manufacturer fighting a bigger and aggressive competitor in the tight agriculture marketplace. |
Challenges: The downturn had made the marketplace brutal. Larger competitors were maintaining a dominant sales force and their pricing strategies were predatory. Profit margins were eroding as products were at or becoming at parity. A price-war battle was underway...
Solution: First Management Analytics Group collected and analyzed the client's current transaction-level data by customer and product. We discovered that 20% of customers were responsible for 80% of the sales. (This is not uncommon, by the way). Then we used our proprietary ABT (Advocate-Buyer-Tryer) analysis to develop useful profiles for both high and low performing customers. These clearly identified who should and should not be contacted by the sales team. The sales managers then focused their sales efforts upon current and potential customers that matched the high-performing customer profile having high lifetime value -- and steered their sales teams away from those that did not.
Results: Management Analytics Group revealed that only 5% of the top customers were responsible for more than 95% of the revenue. Sales efforts were adjusted accordingly. Year to date sales and profits rose by 15%!
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