Starting situation – high cost pressure through technology changes and high sales costs, owing to no differentiation in terms of customer management
Our customer, a globally active technology group, was under pressure from two sides in the area of sales. Externally, a technology revolution was putting enormous cost pressure on the entire industry. Internally, the situation was exacerbated by a highly fragmented customer structure, resulting in high sales costs in comparison with competitors, and pushing the well-trodden procedural paths in customer management to their limits.
Project approach – improvements in sales efficiency through standardized KPI scorecards and alternative concepts for customer support
In an initial analysis, the company’s customers were assigned to special clusters on the basis of defined characteristics. The crucial factors here were the interaction with customer service, the degree of automation, and also order frequencies. Standard and results-oriented minimum support standards, service speeds and surcharge regulations were determined for each cluster and then anchored in the sales team. Mass processes in the back office were bundled, simplified, and automated. This allowed efficiency and complexity measures to be identified over the entire course of the project, yet without neglecting personal ties, especially those with major customers.
Finding – a blunderbuss is not the most efficient weapon – a lean and targeted sales structure as a defense measure against the cost steamroller
The customer is king, and all customers are equal – but some customers are more equal than others. Not every customer creates the same value for the company, and this should be reflected in the degree of support. For this reason, not every customer justifies the same acquisition and sales costs. Only those companies that sensitively make such a distinction can provide a customer service with a lean sales team that meets expectations, while at the same time optimizing its own profit contribution.
- Increase in effectiveness through systematic, differentiated and results-based customer acquisition and support provided
- Sustainable cost reduction in the double-digit million range and standardized KPI control boost competitiveness in the long term