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Presented to National Pre-Cast Concrete Association

VANTAGE ASSOCIATES, INC. Presented to National Pre-Cast Concrete Association. MANAGEMENT CONSULTANTS. TARGETING CUSTOMERS FOR HIGHER PROFITABILITY. If you do what you’ve always done, you’ll get what you have always got. TODAY’S GOAL. Better use of sales resources.

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Presented to National Pre-Cast Concrete Association

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  1. VANTAGE ASSOCIATES, INC. Presented toNational Pre-Cast Concrete Association MANAGEMENT CONSULTANTS TARGETING CUSTOMERS FOR HIGHER PROFITABILITY

  2. If you do what you’ve always done, you’ll get what you have always got.

  3. TODAY’S GOAL • Better use of sales resources • Leading to higher-quality sales • Resulting in higher profits

  4. THREE-STEP PROCESS 1. Learn to spot the ideal customer 2. Reallocate sales and service resources 3. Develop a plan to acquire or grow a customer

  5. STEP I Learn to spot the ideal customer.

  6. Describe the ideal customer.

  7. BEST CUSTOMER CHARACTERISTICS • Is interested in win-win sales • Pays promptly with little or no hassle • Occasionally provides us with references • Loyal to our company • Treats us with respect • Values our products/services and expertise • Fun to work with

  8. WORST CUSTOMER CHARACTERISTICS • Slow to pay • Inflexible in problems • Attempts to take advantage of us • Frequently threatens to “go elsewhere” • Difficult to work with

  9. A B C CUSTOMER ANALYSIS CHARACTERISTICS A CUSTOMERS B CUSTOMERS C CUSTOMERS

  10. “A” Customer “B” Customer “C” Customer EVALUATE YOUR CUSTOMER BASE Current/Potential Customers X Quality Builders, Inc. X County Highway Dept ABC Construction X X Smith & Sons X Horizons Construction X Utility Contractors, Inc. X Jones Construction

  11. STEP II Reallocate sales and service resources.

  12. RESOURCE ALLOCATION % of Profit % of Customers % of Volume % of Time A - CUSTOMER B - CUSTOMER C - CUSTOMER

  13. RESOURCE ALLOCATION % of Profit % of Customers % of Volume % of Time A - CUSTOMER 20% B - CUSTOMER 60% C - CUSTOMER 20%

  14. RESOURCE ALLOCATION % of Profit % of Customers % of Volume % of Time A - CUSTOMER 20% 80% B - CUSTOMER 60% 40% C - CUSTOMER 20% -20%

  15. RESOURCE ALLOCATION % of Profit % of Customers % of Volume % of Time A - CUSTOMER 20% 80% 30% B - CUSTOMER 60% 40% 30% C - CUSTOMER 20% -20% 40%

  16. RESOURCE ALLOCATION % of Profit % of Customers % of Volume % of Time A - CUSTOMER 20% 80% 30% 30% B - CUSTOMER 60% 40% 30% 50% C - CUSTOMER 20% -20% 40% 20%

  17. RE-ALLOCATE SALES/SERVICERESOURCES • Make sure “A” customers get the attention they deserve. To ensure their loyalty: • Regular contact • “Hot line” for problem resolution • Demonstrate appreciation

  18. RE-ALLOCATE SALES/SERVICERESOURCES • Find ways to send “C” customers to the competition • Increase the price • Reduce service • Change the terms • Restrict access

  19. RE-ALLOCATE SALES/SERVICERESOURCES • Target “B” customers with “A” customer potential • Shift resources wasted on “C” customers • Develop account plans for potential “A” customers

  20. STEP III Develop a plan to acquire and grow “A” customers.

  21. DEVELOPING AN ACCOUNT PLAN 1. Analyze the situation - What will it take to turn a customer into an “A” customer 2. Define measurable objectives 3. Develop specific action plans 4. Implement the plan 5. Review, critique, and refine

  22. 1. ANALYZE THE SITUATION • What is my competition with this account? • Do I know everyone that influences the decision? • Do I know what the customer really wants? • What are my strengths and weaknesses?

  23. 2. DEFINE MEASURABLE OBJECTIVES • Define objectives that are both challenging and achievable • Sample objectives: • Volume of number of units • Percent of business • Gross profit

  24. 3. DEVELOP SPECIFIC ACTION PLANS • Understanding the buyer(s) • Avoiding land mines • Defining success from the customer’s perspective • Implementing the strategy

  25. DEVELOP SPECIFIC ACTION PLANS UNDERSTANDING THE BUYER(S): • Who identifies the need? • Who establishes product specifications? • Who selects the vendor? • Who approves the expenditure? • Who uses the product/service? • Who influences the decision making purchase?

  26. DEVELOP SPECIFIC ACTION PLANS LAND MINES: • Missing information • Uncertainty about information • Uncontacted buying influences • New buying influences • Reorganizations/mergers/buyouts

  27. DEVELOP SPECIFIC ACTION PLANS DEFINING SUCCESS: • Cost perspective • User perspective • Technical perspective

  28. Low cost of purchase Good budget fit ROI Financial responsibility Increased productivity Profitability Smooth out cash flow Flexibility Reliability Increased efficiency Upgrade skills Fulfill performance requirements Best problem solution Do job better/faster/easier Versatility Excellent service Easy to use DEVELOP SPECIFIC ACTION PLANS DEFINING SUCCESS: COST (WINS) USER (WINS)

  29. Product meets specs best Delivery time Best technical solution Innovative approach Technical assistance DEVELOP SPECIFIC ACTION PLANS DEFINING SUCCESS: TECHNICAL (WINS)

  30. DEVELOP SPECIFIC ACTION PLANS DEFINING SUCCESS: • Satisfied Customers • Long-Term Relationships • Repeat Business • Good Referrals

  31. DEVELOP SPECIFIC ACTION PLANS A FOCUS ON THE CUSTOMER: • Identifies their organizational and personal needs • Helps you add value to your customer’s organization • Helps you create a long-term business relationship that benefits all parties • Helps you translate that relationship into mutually beneficial sales • Helps create a unified customer emphasis throughout the company

  32. Remain in power Increase control Get more leisure Remain in a given location Increase skill development Increase personal productivity Be a change agent Be a problem solver Increase knowledge Gain recognition Gain financial reward Improve social status More family time Gain industry recognition Increase self esteem Reduce risk Increase security Be seen as a leader Be seen as an innovator Increase responsibility and authority Improve a lifestyle Gain more freedom Reduce pressure/anxiety Add valued experience DEVELOP SPECIFIC ACTION PLANS A FOCUS ON THE CUSTOMER:

  33. 4. IMPLEMENT THE PLAN MAKING EFFECTIVE SALES CALLS: • Position in the decision-making structure • Primary concern (price, service, quality) • Personal interests and hobbies • Receptivity to: • Your company • Your products/services • Your sales presentation • Current supplier satisfaction • Competitive options • Financial/budget situation

  34. IMPLEMENT THE PLAN PRE-PLANNING QUESTIONS TO ANSWER: • Who is the decision maker? • What is the prospect’s current situation? • What are the prospect’s goals? • What are the prospect’s current problems or needs? • What are your call objectives? • What information would you like to collect?

  35. IMPLEMENT THE PLAN PRE-PLANNING QUESTIONS: • What are the decision making criteria? • How will you have to prove yourself? • What is your competitive edge? • What objections are you likely to encounter? • What is success for the call - what commitment are you seeking? • How will you know the success criteria?

  36. 5. REVIEW, CRITIQUE, AND REFINE • Confirm account’s potential • What worked and what did not • What new step will be taken in the future

  37. IN SUMMARY INCREASE PROFITABILITY BY: • Identifying customers with the greatest potential • Reallocate resources • Develop a plan for specific accounts

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