2. Increase your revenues as your products offer different value to your customers in different industries
Your products will offer different value in different applications. This means that some of your customers will be ready to pay more for them than others.
The same high strength steel plate can be used in a bridge and in a trailer. It will in both cases allow for a cost reduction in the production phase. In the case of the trailer it will also generate an opportunity for increasing the revenues as the transporter will be able to carry more goods thanks to the lower weight of his trailer. As the revenues are generated during the whole service life of the trailer these benefits will be far greater than the cost savings in production.
As the value of the steel plate is far greater for the trailer owner he will be willing to pay more for it than the bridge builder.
If you segment your customers on the products they are buying you will miss the opportunity of pricing your products according to the value they are generating for your customers. A customer segmentation by industry on the other hand allows you create a relevant offering for the customers and differentiate the price between your customers in different industry segments.
3. Turn your sales reps into value based sales professionals with targets to grow in the most attractive segments
Most Business-to-Business companies have a big potential to improve their sales by developing the sales argumentation of their sales reps. These are often developing their own stories based on their experience and as there is usually little structured exchange between them they are not able to learn from each other.
By building a simple application map with all the relevant applications for an industry together with quantified cost and revenue benefits for each application your sales reps will be able to switch the dialogue with the customers to their products and discuss how your products can make them more efficient.
The sales reps will go through the application map with their customers to assess their share of wallet and how many of the potential parts the customer is actually buying. They keep track of these data and after some time the organisation will be able to build their battlefield map.
The battlefield map is a chart with your market share, growth potential and a profitability indication by segment for all your geographical markets.
The Battlefield map allows you to direct your sales to the most attractive segments and markets and optimise your profitability. You can read more about Battlefield maps here.
Many companies make big investments in new machinery and product development only to find that the sales of the new products increases much slower that promised in the investment case. This happens when the company does not realise that you have to make some investments in the sales organisation as well. Usually you do not need more sales people but the people that you have need simple tools they need to be followed-up by their management on the sales of the new products.
In 3S we have models for creating both Application maps and Battlefield charts that will help you to create a sales strategy out of your company strategy and ensure that local sales managers are able to manager their sales reps efficiently more importantly to take the strategy from power points to revenues.