Customer Engagement Transforms Sales
The company wanted to grow sales in a mature, low growth market. One of its customers was a small, specialist retailer but the relationship had always been purely transactional. Neither side saw an opportunity for profitable growth because only a narrow range of low margin products was being stocked.
To achieve a sales turnaround involving a transformation of the business relationship.
- A lot of listening by the supplier enabled a meaningful dialogue to start
- Customer engagement was prioritised and the sales team was strengthened
- A much more flexible and differentiated trading plan was developed
- Compromises on both sides led to a more cost efficient delivery agreement
- Quarterly meetings were put in place and performance was monitored carefully
- Turnover increased by 78% within the first year of the new agreement
- Net margin grew despite the cost of the increased resource and investment
- Operating efficiencies and reduced late payments generated on-going cost savings
- As trust built, the range was extended and branded products featured in store leaflets
- Sales doubled the following year