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CJJJF Consulting Inc. October 2009. Sales Strategy Assessment. Pyramid. Situation
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CJJJF Consulting Inc. October 2009 Sales Strategy Assessment
Pyramid Situation ARDEX is a provider and producer of high quality specialist construction materials that are sold through various channels to several different market segments. Complication Growth is slowing in the commercial construction industry in HK and South China. To meet the company expectations for growth and profitability, the Hong Kong sales office of Ardex wants to ensure that their sales strategy targets the market segments in which they can achieve maximum profit, and that their sales process is properly aligned to this strategy.
Question • How can ARDEX Hong Kong increase sales and profits through its sales strategy? • Recommendations • In order to increase profits and sales ARDEX HK should: • Focus primarily on hotel and tbd project type segments by allocating x# sales staff and % of marketing budget to customers in this segment. • Maximize the profits achieved by sales staff by aligning their skills set and sales process to customer needs. Ensure internal
Market Segment Mix By Project Type (1st half 2009) Sales in the hotel segment bring in the most average profit per project. Source: XYZ
Profits generated per Man-Hour for Each Project Type Sales in the hotel segment generate the highest profits per man-hour. Source: XYZ
Industry Growth by Project Type (# of New Projects) The hotel and X segments are projected to have the highest growth within the construction industry in the regions covered by the ARDEX HK sales office
Rationale for Market Segment Recommendation • Sales within the hotel and X segments generate the highest average profits per project • Sales within the hotel and X segments require the lowest average man hours per deal • The hotel and X segments are projected to have the highest growth within the construction industry in HK/Macau • Rationale for Sales Process Recommendation • Current manual processes are substantially more time consuming than suggested automated processes • Eliminating redundant steps in the sales process will allow sales people to devote more time to client relationship management
Rationale for Modifying the Sales Process Establish areas where greater efficiency can be achieved: • Improve hand offs to minimize miscommunication • Remove sales task redundancies within the sales team - savings of x hours • Establish approval thresholds to decrease hold ups in the sales process • Reduce the turnaround time by x days for contractual review and approval Source: Interviews & Sales Log
Inefficiencies in Sales Processes Eliminate redundant steps in the sales process Source: Interviews & Sales Process
Solution Investment in $ Payback Time Efficiencies Gained Ardex Other business #1 Other business #2 Other business #3 “A CRM system should be help us free up time to focus on clients”
Current State of the Sales Process Situation: Current sales processes add unnecessary time usage to the sales cycle. Complication: There has been too much work for the sales team to analyze and change the process. Question: In what ways can there be incremental savings in the sales cycle time to focus on the next deal? Answer: Evaluate the sales process and identify where there is material time reduced from the sales life cycle. **not in final dummy pack Source: Interviews & Sales Log
Next Steps • <list action items taking into account the prioritization of the recommendations>
Workplan Issue Hypothesis Analysis Data Sources Task Owner Due date Status Project Kick-off Project kick-off will level set the expectations and objective of the project between the team and the client. Client Jana 26-Sep Complete Assess Market Channels Ardex can increase sales by 5% by selling directly to customer. research on market channels that are available and which are better sources for product awareness and distribution manager, salesperson, customer, documentation, industry best practices Conduct interviews, gather data, analyze data Fabrizio 14-Oct In Progress Assess Market Segments Ardex can increase sales by 5% by selling through partners. research market segments that are growing over the next 5-10 years manager, salesperson, customer, documentation, industry best practices Conduct interviews, gather data, analyze data Jana/Craig 14-Oct In Progress Assess Current Sales Processes Ardex can increase sales by 5% by focusing on single type of developer analyze the current process. Check for manual processes, redundancies, manager, salesperson, customer, documentation, industry best practices Conduct interviews, gather data, analyze data Jen 14-Oct In Progress Assess HR impact Better HR recruiting and rewards to sales team will increase sales performance by 5% High level review of compensation. Compare to other sales models in the same industry manager, salesperson, customer, documentation, industry best practices Conduct interviews, gather data, analyze data JT 14-Oct In Progress Analyze Future State Recommendation Using current state findings, create a list of recommendations and prioritize that will help Ardex increase sales by 5% current state findings Create a list of the recommendations for Ardex Team 14-Oct In Progress Build Future State Recommendation Using future state design, build the recommendation that will help Ardex increase sales by 5% current state findings Select the recommended actions Ardex should implement Team 20-Oct In Progress Present recommendation Recommendation will offer prioritized actions for increasing sales by 5% current state findings Create ppt deliverable Team 21-Oct Open
Current Dynamics of Sales Force Process Process standards are initialized Recruiting standards are defined Manual People Technology Focus of sales strategy should be to fill in gaps created by imbalances in dynamic factors, which are currently at different stages of maturity. Source: XYZ
Time spent on manual processes in the sales lifecycle (hours/week) Current manual processes are time consuming which can be resolved through automation Source: Interviews & Sales Process
Technology: Benefits of Automating Sales Process A Customer Strategy – with segmentation, profiling, and marketing plan deployment. Good Measurements – of current marketing, sales, and service metrics with clear KPIs and customer analytics. A Well-understood Technology Plan – that stages your CRM efforts and costs appropriately, creating an inherent sharing model that allows Management to view the Pipeline in real time. Increased Sales – from a sales methodology that targets the appropriate segments, and incentive programs that drive results. Automated Processes – for managing accounts, contacts, opportunities, leads, orders, internal workflows, and reporting. Measurable Change – with a metrics and workflow portal that consolidates your process measurements into a single view. Higher Satisfaction – from stronger internal processes and online service extensions to your customers. A Single View – of the customer across the enterprise, with shared, quality data for a consistent customer experience, and a single, “composite” interface where appropriate. A Balanced Portfolio – of customer systems that interface with each other, enable your workflows, and report progress.
Available CRM Solutions Available solutions that can reduce time spent on manual tasks and assist management of day-to-day responsibilities. Solution Description Benefits Goldmine • Team-based contact management and sales force automation solutions • Communication Management • Streamlined customer service and communications. • Only CRM that provides Call Center functionality • Specializes in SMEs • Low cost per user ($695-$995) Appshore • Lead management • Account and Contact management • Activity management • Opportunity management • Document management • Case management • Full customization • Email marketing • Shared Calendar • Low cost, paid monthly • Tailored to needs of small businesses • Hosted databases to protect against data loss from computer crashes Microsoft Dynamics • Microsoft Dynamics CRM • Microsoft Dynamics AX for field service • Microsoft Dynamics AX for sales and marketing • Microsoft Dynamics GP for field service • Microsoft Dynamics NAV for sales and marketing • Microsoft Dynamics NAV for service management • Microsoft Dynamics SL for field service • Microsoft Office Outlook 2003 with Business Contact Manager • Highly customizable CRM application/platform. • Familiar Microsoft Outlook-like user interface. • Robust reporting engine for sharing between users in a variety of formats including Excel, HTML, PDF, XML and CSV. Source: Business-Software.com
People: Organizational Alignment Quarterly Sales by Product (000s of US Dollars) Contracts are won by product so salespersons must have product expertise across the ARDEX brand to win multiple contracts.