Increasing market share is good. However, increasing wallet share is even better because it is usually far easier to sell additional products to existing customers than it is to acquire new customers.
Sales Channel Strategy
We recently published an article on selling value internally along with selling externally to prospects. Because while many distributors have spent time creating a value proposition their employees will take to heart, salespeople often falter when it comes to selling the company’s value to prospects.
Despite the many columns and webcasts predicting distribution’s post-pandemic “new normal,” it’s going to be a long time before our industry settles back into a rhythm. For now, expect a “new abnormal,” where powerful forces will continue to transform the industry and redefine how you must compete to win.
Pursuing new customers in existing markets can be an expensive proposition if not done with proper planning, analysis and execution.
Well-run companies know that customer retention is critical to long term success as a business. For some companies, an annual increase of 1% in customer retention over each of the next ten years results in 20% increase in annual earnings. Retention is powerful for several reasons.
You must look closely at the business you want to acquire from your competitors, in order to define a specific strategy. Do you want to dominate a certain product category or a specific geography? Or do you want to focus on a particular customer type, such as large volume or a specific SIC?
It’s a great idea and it requires thoughtful planning. Most distributors want to increase sales by entering new markets — but what does that mean?
How Your Reps Can Make Calls without Visiting Customers Background As of this writing, the coronavirius (COVID-19) is infecting an increasing number of people around the world. We grieve over the human toll this virus takes. With a mortality rate that appears to be about 3% (at the moment) and focused primarily on the elderly…
What’s the difference between customer service and inside sales? What are the skills sets distributors should look for when hiring for a successful proactive inside sales team, and aren’t those the same as customer service?
In general, distributors’ ongoing shift to digital is a good thing; depending on the segment, customers do prefer to be communicated with digitally.