Challenge:
Sales were relatively flat at this electronic supply distributor. While some customers purchased multiple times, many purchased only once. Customers averaged 1.4 transactions per year. The company had a database of over 1,000 customers that they did not maintain or use it to generate repeat business.
Our Goal:
To grow sales through existing customers by improving the frequency and average sales amount per customer.
Actions Taken:
- Cleaned up the database and removed 300 dead accounts.
- Established a customer value criteria based on revenue and profitability. Assigned value codes to all customers in the database.
- Established guidelines for contact frequency and method based on value code. Then began implementing phone follow-up calls at the designated frequency.
- Developed a quarterly program to stay in touch. Used the program to promote the full range of products and exclusive, customer-only offers.
- Systematized the blanket order process for easy follow-up and re-ordering.
Our Results:
In 6 months, the average number of transactions increased 25% and the average sale increased 11%. Without increased spending on marketing, revenues increased 21%.
Bonus:
A few months later, when a key supplier notified the company of a pending price increase, the company had a simple, easy way to quickly email a “Buy Now Avoid the Price Increase’ offer. This effort generated over $50,000 in incremental sales and demonstrates the value of a well-maintained database.
Ready to Create Your Own Success Story?
Are you ready to move your business in a better direction and wonder if working with a business coach can make a difference? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.
To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com