Case 3 – Sales Performance
Background
Privately owned tile manufacturer and exporter selling exclusively through channel partners, experienced difficulties competing with cheap imports. Although their products were superior to others on the market they were perceived as overpriced.
A downturn in the housing market and consequent decrease in local sales, further reduced turnover and profit.
Core issues
Channel sales partners were uneducated on the value and benefits of the company’s product and could not articulate such to their customers. Consequently the company’s product sales suffered because they were competing on price alone.
Channel management was reduced to a random relationship process without knowledge of channel partner needs or monitoring of channel performance.
Solution
A solution sales methodology was implemented establishing predictable and reliable sales processes with technology put in place to measure and track performance levels.
A strategic focus to channel development was applied in understanding channel needs, wants and motives. Support programs (education, information, technical, etc) were developed accordingly.
Education programs were launched teaching channel partners to identify key customers, communicate with them on the value of the company’s products, and continue to create value after the first contact. Information and support materials were provided to enable channel partners to better convey the company’s message.
Channel management systems were implemented to monitor channel performance and provide comparative information for strategic decision making.
Critical success factors
By applying tactical probing and diagnostic problem solving skills the company’s sales team gained an understanding of channel partner needs and problems as well as insight into their customer buying profiles. This enabled a proactive partnered approach to channel management.
Channel partners are able to articulate to their customers the value and benefits of the company’s products, enabling value based customer purchasing and reducing commoditised price sensitive sales.
Systemic assessment of sales performance with comparative information enabled tactical decision making and strategic positioning.
Results
The company experienced a 15% revenue increase at a time when economic conditions coursed competitors to suffer losses.
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