Presented to National Pre-Cast Concrete Association

Presented to

National Pre-Cast Concrete

Association

VANTAGEASSOCIATES, INC.MANAGEMENT CONSULTANTS

TARGETING CUSTOMERS FOR

HIGHER PROFITABILITY


If you do what you’ve always done,

you’ll get what you have always got.


TODAY’S GOAL

Better use of sales resources

Leading to higher-quality sales

Resulting in higher profits


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


Learn to spot

the ideal customer.

STEP I


Describe the

ideal customer.


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


WORST CUSTOMER CHARACTERISTICS

Slow to pay

Inflexible in problems

Attempts to take advantage of us

Frequently threatens to “go elsewhere”

Difficult to work with


A B C CUSTOMER ANALYSIS

CHARACTERISTICS

B CUSTOMERS

C CUSTOMERS

A CUSTOMERS


EVALUATE YOUR CUSTOMER BASE

Quality Builders, Inc.

“A” Customer “B” Customer “C” CustomerCurrent/PotentialCustomers

County Highway Dept

ABC Construction

Smith & Sons

Horizons Construction

Utility Contractors, Inc.

Jones Construction

X

X

X

X

X

X

X


Reallocate sales and

service resources.

STEP II


RESOURCE ALLOCATION

% ofCustomers

B - CUSTOMER

C - CUSTOMER

A - CUSTOMER

% ofProfit

% ofTime

% ofVolume


RESOURCE ALLOCATION

% ofCustomers

60%

20%

20%

% ofProfit

% ofTime

% ofVolume

B - CUSTOMER

C - CUSTOMER

A - CUSTOMER


RESOURCE ALLOCATION

% ofCustomers

% ofProfit

% ofTime

% ofVolume

B - CUSTOMER

C - CUSTOMER

A - CUSTOMER

40%

-20%

80%

60%

20%

20%


RESOURCE ALLOCATION

% ofCustomers

% ofProfit

% ofTime

% ofVolume

B - CUSTOMER

C - CUSTOMER

A - CUSTOMER

30%

40%

30%

40%

-20%

80%

60%

20%

20%


RESOURCE ALLOCATION

% ofCustomers

% ofProfit

% ofTime

% ofVolume

B - CUSTOMER

C - CUSTOMER

A - CUSTOMER

50%

20%

30%

30%

40%

30%

40%

-20%

80%

60%

20%

20%


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



Find ways to send “C” customers to the competition

Increase the price

Reduce service

Change the terms

Restrict access



Target “B” customers with “A” customer potential

Shift resources wasted on “C” customers

Develop account plans for potential “A”

customers


Develop a plan to

acquire and grow

“A” customers.

STEP III


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


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?


2. DEFINE MEASURABLE OBJECTIVES

Define objectives that are both challenging and

achievable

Sample objectives:

Volume of number of units

Percent of business

Gross profit


3. DEVELOP SPECIFIC ACTION PLANS

Understanding the buyer(s)

Avoiding land mines

Defining success from the customer’s perspective

Implementing the strategy


DEVELOP SPECIFIC ACTION PLANS

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?

UNDERSTANDING THE BUYER(S):



Missing information

Uncertainty about information

Uncontacted buying influences

New buying influences

Reorganizations/mergers/buyouts

LAND MINES:



Cost perspective

User perspective

Technical perspective

DEFINING SUCCESS:



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

USER (WINS)COST (WINS)

DEFINING SUCCESS:



Product meets specs best

Delivery time

Best technical solution

Innovative approach

Technical assistance

TECHNICAL (WINS)

DEFINING SUCCESS:



Satisfied Customers

Long-Term Relationships

Repeat Business

Good Referrals

DEFINING SUCCESS:



Identifies their organizational and personal needs

Helps you add value to your customer’s 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

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

A FOCUS ON THE CUSTOMER:


4. IMPLEMENT THE PLAN

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

MAKING EFFECTIVE SALES CALLS:


IMPLEMENT THE PLAN

Who is the decision maker?

What is the prospect’s current situation?

What are the prospect’s goals?

What are the prospect’s current problems or needs?

What are your call objectives?

What information would you like to collect?

PRE-PLANNING QUESTIONS TO ANSWER:


IMPLEMENT THE PLAN

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?

PRE-PLANNING QUESTIONS:


5. REVIEW, CRITIQUE, AND REFINE

Confirm account’s potential

What worked and what did not

What new step will be taken in the future


IN SUMMARY

Identifying customers with the greatest potential

Reallocate resources

Develop a plan for specific accounts

INCREASE PROFITABILITY BY:

Documents

Presented to National Pre-Cast Concrete Association