CLIENT CASE STUDY 2: Improving Large Account Profitability
Client had over 70% of annual sales concentrated with four large national customers, up from only 26% in just three years. The industry was continuing to consolidate rapidly as the larger companies acquired the smaller regional operators. Additionally, only loosely structured annual agreements had long been the industry norm
Working very closely with top management, KIMA completed detailed research on each of the four customers, then facilitated three hour workshops that included both the leaders of the two companies as well as the front line employees that worked daily with our client’s products. The objective: clearly understand all of the customer’s needs and their growth plans. Armed with the insights gained from the research and workshops, KIMA helped our client create and sell a three year partnering agreement with two of the customers, resulting in a secure profit flow. Implementation included building a strategic accounts sales force, supported by a team that responded quickly to the needs of the large strategic customers and delivered special services to them as required.
Our client was able to lock up 70% of sales and at a higher profit margin for the following three years. Customer satisfaction also dramatically increased. Our client was acquired at a 75% premium over market value with existing management remaining in place.