Every company knows its sales force is critical to success, but many don’t know how to strategically analyze their effectiveness. This can pose problems in the best of times, but even more so when companies are confronted with heavy churn in both their customer base and sales team.
How do companies’ combat customer churn and sales effectiveness? Sales analytics – which can not only enhance customer acquisition and retention, but drive organic revenue growth, and strengthen the salesforce.
A billion-dollar generic pharmaceutical distributor faced this challenge and desperately needed an innovative strategy. By leveraging advanced analytics, the company was able to analyze sales associates and customer-buying behaviors and the predicted probability of sales success.
The analysis yielded a startling revelation: The company was losing more than $42 million annually due to preventable customer loyalty churn and missed organic revenue growth opportunities.
To contest the problem, the company leveraged predictive analytics to generate what was dubbed an “Intervention Playbook.” The playbook provided guidance on which clients should be approached at what time, with what product, and at what price.
The Intervention Playbook, integrated with sophisticated predictive analytics, produced a fresh, streamlined, and proactive business process which:
- Evaluated customer orders continuously to identify high priority and at-risk customers;
- Analyzed the risk profile of each customer to determine the optimal account strategy including timing and frequency of contact (via call scheduling in this case), as well as product strategies that would drive loyalty;
- Monitored sales associate performance at the customer level with aggregated, actionable insights for management
- Defined an escalation process to evaluate and refine engagement with customers to insure success.
As a result, customer organic revenue growth increased in the first year by 27 percent – breaking a three-year cycle in which customer acquisition was invariably offset by customer loyalty churn. In addition, revenue per sales rep soared 15 percent, proving that predictive analytics could produce a playbook that assured profitable organic revenue growth even in the most competitive environment. To remain competitive, future opportunities such as share of wallet and price optimization capabilities were also identified for the pharmaceutical distributor. Leveraging predictive analytics not only combatted customer churn and improved sales effectiveness, but it also provided an edge against the competition.