Case Study – Electronic Supply Distributor

Electronic Supply Distributor Case StudyChallenge:

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%.


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.

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