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%.

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?

Connect by Phone | Book AppointmentEver wonder if working with a business coach can take your business to a whole new level? Then let’s explore the possibilities with a free 30-minute consultation. This introductory call allows us to get to know each other and 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 call me at (856) 533-2344 or book appointment online