– objective –
Turnaround Declining Revenue and Profit and Pursue Revenue Growth Opportunities
– Challenge –
We worked with a President of a Business Unit who managed complex technology solutions. While this business unit was the market leader in their product area, and they were growing their business at 15-20% CAGR, there were signs of their business starting to erode.
Through some discussions with customers in their market they realized that their competition was growing with higher rates and that while their competitors were half their size, they were catching up.
– Solution –
Acrelic team members confirmed the data and developed actionable strategies and tactics. Through customer and competitor research, a rating and ranking of customers priorities and needs were created and an assessment was made to establish how Acrelic’s customer could differentiate itself based upon its perceived strengths (by the market) and leverage that to start winning faster.
Acrelic facilitated the assessment process along with the management team of the business unit, conducted the market and competitor research, created draft solution profiles to be used by marketing, and drafted scripts for sales people to utilize when prospecting.
The client company was growing at 5-25% below its nearest competitors
The sales force was spread thin and not able to cover an expanded territory
There were two growing sub segments that were found to be growing at double the overall growth rate
The number of channel partners and the volume of solutions moving through channel partners was below average
The client established several initiatives to change their product positioning and expand the use of channels to reach their customers based upon this effort
– REmarkable results –
The impact of stronger solution positioning and greater awareness of the customers needs and priorities showed up initially in their sales pipeline. The top of their sales funnel expanded within the first 60 days after implementing the new strategies and the following two quarters showed a 30% increase in closed revenue which the client attributed to the improved positioning.
The customer’s revenue and sales velocity has been faster than its nearest 3 competitors and it still maintains the leadership in this segment.
Average Contract Value Increase %
Revenue Increase %
– key takeaways –
The new business unit leader realized that they couldnt depend on the historical catalog marketing approach (Drop Ship a Catalog, and wait for the phone to ring).
The key learnings here included:
- ADDING Inbound sales approach could turnaround a primarily inbound business
- Changing the Script to include asking about the projects that customers were working on was easily able to increase the average contract value
- Increased Market Intimacy Assisted in Prioritizing Outbound Telesales Efforts and Engineers were More Excited about outbound calling and selling