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Background Systematic Customer Relationship Management
For three consecutive quarters, a pan-European operating wholesaler faced a significant decrease in its urnover
figures. The company’s field sales managers reported mounting pressures from dissatisfied customers and aggressive competitors. MFB Resultants was hired to analyze the situation and create concepts for a turnaround. MFB Resultants was challenged to implement a systematic and analytical approach towards sales force effectiveness in order to raise customer satisfaction and gain new customers. The goal was to raise turnover by 15 % annualized, thereby keeping existing margins.
Procedure
The experts of MFB Resultants identified a serious lack of information concerning customer satisfaction and customer experience. Using data that included records of past company transactions new classification codes were introduced based on transparent analytical tools. Then the field managers were asked to create a list of prospective customer characteristics. Six criteria were identified that had high correlations. These key criteria helped the company to identify new high-priority prospects that it would otherwise have overlooked.
The new information allowed the management to redesign its sales force. For example, territories were restructured, ensuring that each one contained plenty of opportunities. In some cases that meant narrowing assigned areas or creating new territories entirely. Special emphasis was put on the restructuring of key accounts. In the past, highpriority customers were regionally differentiated. Now, the sales management served their key clients under the slogan “one face to customer”. In a three-month coaching program, the sales team learned in on-the-job situations how to implement the new sales paradigm.
Results New tools increased Turnover
The new sales approach allowed management to support its sales force with new tools and processes for the field, such as targeted marketing campaigns that focused on high potential segments. As a result, customer satisfaction rose significantly. In the year of the reorganization, the sales division increased both closings and total turnover per customer by 17 %. The following year saw a boost in new business by 50 million euro. |
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