A company in the food sector with a turnover of around 50 million euros and with more than 10,000 clients worldwide, wants to increase and make its sales profitable by implementing the CRM philosophy. For this, it relies on Improven Consultores due to their experience and knowledge in this type of project.
The starting situation
After a few years of successive drops in sales levels as well as in their profitability, the company's Senior Management decides to make a thorough review of its strategy, processes, people and technology to change the trend and not jeopardize the viability of the company in the medium term.
The company - in the food sector and a turnover of around 50 million euros - had three different lines of business. One of the lines had been the star since its inception and was in a situation of loss of leadership in its sector after more than 30 years being the undisputed leader at the international level.
The other two lines of business were recent and created as a result of innovation and the experience of the company in its sector. However, despite the innovative value of their products, they had not achieved the expected business results, becoming a drag on the core business, rather than new sources of income from new expanding markets.
Being aware of the cultural and organizational change necessary for this change of focus in their strategy, and of the need to have a global vision of their company, they decide to trust the Improven Consultores team to collaborate on this project and achieve the objectives defined by the high direction.
After the diagnosis, it was detected that the basic reasons for the loss of profitability were:
- Poor value proposition to the client due to the fact that they had prices much higher than those of competitors with a similar level of service Low levels of satisfaction in their clients that caused a continuous loss of the best The sales force did not achieve results satisfactory, ineffectively managing its resources.
The proposed solution
Due to the need for the company to improve this situation and achieve a positive impact on its income statement in the shortest possible time, the Improven Consultores team proposed a global project that included a review of the company's strategy in all its business units as well as the introduction of a CRM strategy and its associated plans.
All of this was developed with a detailed execution plan and change management led by the Improven Consultores team, with a total integration of the team of consultants in the company's human team, and its execution without trauma, despite the strong changes at the organizational level that occurred.
The methodology
During thirty weeks, four consultants using the Improven Consultores methodology for CRM projects carried out the project in the following phases:
- In the first place, a meeting and data collection session was held with the entire Steering Committee to analyze the strengths and weaknesses of the organization as well as the opportunities and threats existing in the market and from there design the strategy action plan, people and culture, processes and technology.
- To review the strategy, a Strategy Committee was created with participants from the company and Improven Consultores to review the strategy both at the corporate level and at each of the units. This committee was responsible for both communicating the strategy to the rest. of the company, as well as its subsequent reviews and evolutions. Likewise, a balanced scorecard was also defined to help implement the strategy.
- Based on the designed strategy, the customer relationship management strategy was developed, in order to define the marketing and sales strategies from it. For this, a deep segmentation of the current and potential market was made to make a perfect allocation of resources, concentrating them in the most profitable areas and divesting in the areas with fewer opportunities. It is very important to highlight the work carried out on the pricing policy since it was observed that there was no correlation between the quality of the customers and the prices of each one of them.
- With the reorganization of the sales network, a detailed sales plan was designed, which focused entirely on action, served as the perfect ally for the sales structure to achieve the objectives set. Not only was the design of the plan necessary, but the corporate culture and its procedures had to be managed to facilitate the sales network to increase its effectiveness, and for the management to have all the information to facilitate its correct decision-making.
- In order to turn the strategy in the areas of CRM, marketing and sales into results, a scorecard is implemented so that all the Improven Consultores methodology is used in defining it.
Execution of the communication and change management plan.
- Due to the high organizational impact of the changes made, it was necessary to manage the organizational change to achieve the alignment of the company's members with the new strategy, and in turn, communicate to the market a message of renewal and dynamism typical of its long history.
Results
After the implementation of the project, and after thirty weeks of high dedication by the team formed by Improven Consultores and by the company, the following results were achieved:
- Increase in average profitability per customer by 22% Decrease in customer churn rate from 23% to 4.8% Increase in net profitability by 21% Increase knowledge of customers and their segmentation Improvement by 17% Customer satisfaction Increase in turnover by 11.2% Increase in satisfaction and performance of the human team.
And above all, the company managed to position itself at the levels of prominence in the market that it had historically had, preserving its brand image and guaranteeing its continuity for the next generation.
