Challenge 1: Strategy
A manufacturing company was asked by senior leadership to double in revenue within a five year period. The existing infrastructure operated in five separate business units. This led to confusion around priorities, redundant customer visits, and a lack of segmentation for key accounts.
We performed a deep-dive analysis of customer revenue, gross margin, and SKU data for the prior three years. Of the 6,500 customers, the majority of revenue was derived from the top 100 customers with limited segmentation. We identified areas of “white space” where the company had the potential to sell additional products. The company did a good job of retaining revenue with their existing customers. However, the analysis showed that new customer sales were less than 2% of revenue, which is very weak.
• Senior leadership clarified the value proposition for their target segments and customers.
• The sales organization developed Key Accounts Programs to increase the growth of the Top 100 customers.
• The sales leaders trained the sales force on all company strategies and priorities, including how to sell to new clients.
• Sales leader also introduced financial incentives for the achievement of specific priorities.