Thinking Partners

Case Study:
Customer Loyalty

The Opportunity

Faced with demanding customers and aggressive competitors, sales executives in Chicago confronted this question:

What can we do to gain loyal customer partners and improve profitability in a fiercely competitive market?

  • What are the differences between loyal partners and satisfied customers?
  • What do customers expect from sales organizations?
  • Are sales organizations meeting the most important expectations of their customers?

Analysis and Action

  • Look at your customer base. Identify those who are loyal customers and those who fall into other categories.
    – Build a customer model that looks at potential, segmentation and long-term relationships.
  • Focus on improving your relationship with those who have the potential to become profitable, long-term customers.
    – Create customers value by exploiting the strengths of your value proposition.
  • Understand how your customers are changing and how your sales force is changing.
    – Align the sales force to meet the various needs of your customers.

Aligning Customer Buying Behavior

alighning customer buying behavior

Commit to a customer focus

Develop a customer driven vision:

  • Business expertise and image.
  • Dedication  to customers.
  • Account sensitivity and guidance – the organization's market sensitivity and response to issues relating to price, punctuality, and quality standards.
  • Product performance and quality.
  • Service department excellence.
  • Confirmation of capabilities – identifying the value that customers recognize.

Sales channels

The truth is that the sales force is alive and well:

  • They perform a critical function – a function that no other channel can perform.
  • They are still the only channel that can sell complex products and solutions.

Leverage other sales channels:

  • Offset the high cost of the sales force with direct sales, marketing, telesales, business partners, and the internet.
  • Identify channels that are well suited to customers’ buying behavior and needs.

Aligning the sales channels with customer loyalty

Traditional Model - Below

Traditional model

  • Go after every opportunity
  • Regardless of profitability

Loyalty Model - Below

loyalty model

  • Focus on loyal customers
  • Convert selected satisfied customers

Results

Increased revenue growth:

  • Reversed four years of declining sales.
  • Improved margins.

Reduced selling cost:

  • Converted 12% of sales revenue through the internet.
  • Improved lead generation by leveraging inside customer service channel.

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