This step explains a simple technique that you can implement today to increase the average win rate of anyone who sells anything at your distributorship.
And when I say anyone, I’m including the people who sell new and used equipment, your aftermarket products and services, operator training, rentals, etc., absolutely anyone who sells or accepts orders!
Here is why this information is essential for increasing revenues and growing your distributorship. I have no way of knowing what your average win rates were last year, but what if it had been just 5% higher than it was? Let’s say from 30% to 31.5%–your distributorship’s total sale revenue last year would have increased by 5%. What would that have been worth to you?
Here’s how easy it is to begin this simple technique right now.
Is it harder or easier to make a sale to an existing customer? It’s easier right? If you research the literature you learn that depending on who you read, it is 6 to 7 times easier to make a sale to an existing customer than it is a new one. Not only is it easier it is about 60% more profitable.
You will sell more, and generate greater margins in the process. Not only will your win rates increase, you will see improvements in customer retention and sell more equipment.
If you could sell more equipment, turn customer retention into a profit center rather than an expense, and increase the productivity of every department in your distributorship, is there any reason you wouldn’t want to do it?
In Step 2, we discussed Ideal Customers and prospects, and briefly described how we identify them. One of the byproducts of that activity is being able to see what each of your customers is and is not buying from you. We refer to that byproduct as the Gap Analysis and the objective is to fill in all the gaps. Another name for that activity is increasing walletshare.
Here is an illustration:
We use this data to turn customer retention into a profit center. Utilizing the Gap Analysis we begin by contacting our distributor’s Ideal Customers. As you can see, the Gap Analysis tells us what they are and are not buying from us.
Our experience is that customers have a preference for doing business with the distributor who sold them the equipment, but they definitely see loyalty as a two way street. They are perfectly open to beneficial relationships, but when distributors don’t express a continuing interest in their business their attitude is, “call the next guy”.
Allowing your competitors to sell aftermarket products and services to your customers is costing you millions in lost revenue. It’s time to take control of those dollars and put them back in YOUR wallet!
Making a conscientious and purposeful effort to sell more to your customers is not only good business, it results in bigger deal sizes and increased win rates. That translates to additional revenue and distributor growth. It’s win/win in every sense of the term.
Contact us today if you are ready for conversation on how we will help you improve your revenue growth. Click here to schedule a conversation.
