Presented%20to%20National%20Pre-Cast%20Concrete%20Association

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Presented toNational Pre-Cast Concrete
Association
VANTAGE ASSOCIATES, INC.
MANAGEMENT CONSULTANTS
TARGETING CUSTOMERS FOR HIGHER PROFITABILITY
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• If you do what youve always done,
• youll get what you have always got.

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TODAYS GOAL

• Better use of sales resources

• Leading to higher-quality sales

• Resulting in higher profits

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THREE-STEP PROCESS

• 1. Learn to spot the ideal customer
• 2. Reallocate sales and service resources
• 3. Develop a plan to acquire or grow a customer

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STEP I

• Learn to spot
• the ideal customer.

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• Describe the
• ideal customer.

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BEST CUSTOMER CHARACTERISTICS

• Is interested in win-win sales
• Pays promptly with little or no hassle
• Occasionally provides us with references
• Loyal to our company
• Treats us with respect
• Values our products/services and expertise
• Fun to work with

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WORST CUSTOMER CHARACTERISTICS

• Slow to pay
• Inflexible in problems
• Attempts to take advantage of us
• Frequently threatens to go elsewhere
• Difficult to work with

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A B C CUSTOMER ANALYSIS
CHARACTERISTICS
A CUSTOMERS
B CUSTOMERS
C CUSTOMERS
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EVALUATE YOUR CUSTOMER BASE
Current/Potential Customers
X
Quality Builders, Inc.
X
County Highway Dept
ABC Construction
X
Smith Sons
X
X
Horizons Construction
X
Utility Contractors, Inc.
X
Jones Construction
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STEP II

• Reallocate sales and
• service resources.

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RESOURCE ALLOCATION
of Profit
of Customers
of Time
of Volume
A - CUSTOMER
B - CUSTOMER
C - CUSTOMER
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RESOURCE ALLOCATION
of Profit
of Customers
of Time
of Volume
20
A - CUSTOMER
60
B - CUSTOMER
20
C - CUSTOMER
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RESOURCE ALLOCATION
of Profit
of Customers
of Time
of Volume
A - CUSTOMER
20
80
B - CUSTOMER
60
40
C - CUSTOMER
20
-20
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RESOURCE ALLOCATION
of Profit
of Customers
of Time
of Volume
A - CUSTOMER
20
30
80
B - CUSTOMER
60
30
40
C - CUSTOMER
20
40
-20
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RESOURCE ALLOCATION
of Profit
of Customers
of Time
of Volume
A - CUSTOMER
20
30
80
30
B - CUSTOMER
60
30
40
50
C - CUSTOMER
20
40
-20
20
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RE-ALLOCATE SALES/SERVICERESOURCES

• Make sure A customers get the attention they
  deserve. To ensure their loyalty
• Regular contact
• Hot line for problem resolution
• Demonstrate appreciation

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RE-ALLOCATE SALES/SERVICERESOURCES

• Find ways to send C customers to the
  competition
• Increase the price
• Reduce service
• Change the terms
• Restrict access

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RE-ALLOCATE SALES/SERVICERESOURCES

• Target B customers with A customer potential
• Shift resources wasted on C customers
• Develop account plans for potential A customers

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STEP III

• Develop a plan to
• acquire and grow
• A customers.

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DEVELOPING AN ACCOUNT PLAN

• 1. Analyze the situation
• - What will it take to turn a customer into an
  A
• customer
• 2. Define measurable objectives
• 3. Develop specific action plans
• 4. Implement the plan
• 5. Review, critique, and refine

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1. ANALYZE THE SITUATION

• What is my competition with this account?
• Do I know everyone that influences the decision?
• Do I know what the customer really wants?
• What are my strengths and weaknesses?

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2. DEFINE MEASURABLE OBJECTIVES

• Define objectives that are both challenging and
  achievable
• Sample objectives
• Volume of number of units
• Percent of business
• Gross profit

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3. DEVELOP SPECIFIC ACTION PLANS

• Understanding the buyer(s)
• Avoiding land mines
• Defining success from the customers perspective
• Implementing the strategy

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DEVELOP SPECIFIC ACTION PLANS
UNDERSTANDING THE BUYER(S)

• Who identifies the need?
• Who establishes product specifications?
• Who selects the vendor?
• Who approves the expenditure?
• Who uses the product/service?
• Who influences the decision making purchase?

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DEVELOP SPECIFIC ACTION PLANS
LAND MINES

• Missing information
• Uncertainty about information
• Uncontacted buying influences
• New buying influences
• Reorganizations/mergers/buyouts

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DEVELOP SPECIFIC ACTION PLANS
DEFINING SUCCESS

• Cost perspective
• User perspective
• Technical perspective

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DEVELOP SPECIFIC ACTION PLANS
DEFINING SUCCESS
USER (WINS)
COST (WINS)

• Low cost of purchase
• Good budget fit
• ROI
• Financial responsibility
• Increased productivity
• Profitability
• Smooth out cash flow
• Flexibility

• Reliability
• Increased efficiency
• Upgrade skills
• Fulfill performance requirements
• Best problem solution
• Do job better/faster/easier
• Versatility
• Excellent service
• Easy to use

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DEVELOP SPECIFIC ACTION PLANS
DEFINING SUCCESS
TECHNICAL (WINS)

• Product meets specs best
• Delivery time
• Best technical solution
• Innovative approach
• Technical assistance

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DEVELOP SPECIFIC ACTION PLANS
DEFINING SUCCESS

• Satisfied Customers
• Long-Term Relationships
• Repeat Business
• Good Referrals

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DEVELOP SPECIFIC ACTION PLANS
A FOCUS ON THE CUSTOMER

• Identifies their organizational and personal
  needs
• Helps you add value to your customers
  organization
• Helps you create a long-term business
  relationship that benefits all parties
• Helps you translate that relationship into
  mutually beneficial sales
• Helps create a unified customer emphasis
  throughout the company

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DEVELOP SPECIFIC ACTION PLANS
A FOCUS ON THE CUSTOMER

• Remain in power
• Increase control
• Get more leisure
• Remain in a given location
• Increase skill development
• Increase personal productivity
• Be a change agent
• Be a problem solver
• Increase knowledge
• Gain recognition
• Gain financial reward
• Improve social status

• More family time
• Gain industry recognition
• Increase self esteem
• Reduce risk
• Increase security
• Be seen as a leader
• Be seen as an innovator
• Increase responsibility and authority
• Improve a lifestyle
• Gain more freedom
• Reduce pressure/anxiety
• Add valued experience

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4. IMPLEMENT THE PLAN
MAKING EFFECTIVE SALES CALLS

• Position in the decision-making structure
• Primary concern (price, service, quality)
• Personal interests and hobbies
• Receptivity to
• Your company
• Your products/services
• Your sales presentation
• Current supplier satisfaction
• Competitive options
• Financial/budget situation

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IMPLEMENT THE PLAN
PRE-PLANNING QUESTIONS TO ANSWER

• Who is the decision maker?
• What is the prospects current situation?
• What are the prospects goals?
• What are the prospects current problems or
  needs?
• What are your call objectives?
• What information would you like to collect?

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IMPLEMENT THE PLAN
PRE-PLANNING QUESTIONS

• What are the decision making criteria?
• How will you have to prove yourself?
• What is your competitive edge?
• What objections are you likely to encounter?
• What is success for the call - what commitment
  are you seeking?
• How will you know the success criteria?

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5. REVIEW, CRITIQUE, AND REFINE

• Confirm accounts potential
• What worked and what did not
• What new step will be taken in the future

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IN SUMMARY
INCREASE PROFITABILITY BY

• Identifying customers with the greatest potential
• Reallocate resources
• Develop a plan for specific accounts