Industry / Company:
IT Wholesaler – This Company has chosen to keep their name private.
<Company Name> after 15 years of providing PC’s to the Government and various retailers, with limited competition in a thriving industry began to face what most retailers and wholesalers are facing, that is the decline in sales, increase in competition and a closing market place. <Company Name> like most companies, started to increase prices, reduce their product range, and reduce staff thinking that their existing loyal customers would continue to remain loyal, in an effort to reduce costs, and increase revenue. Loyalty didn’t hold strong, with customers increasingly becoming dissatisfied with service, not getting the products they wanted, and paying a premium price they decided to look elsewhere. The price increase and decrease in costs initially provided a big boost in revenue, but evidently as the service and pricing was not there eventually customers where sourcing elsewhere.
The objective for <Company Name> was to firstly retain their diminishing client base and re-establish existing relationships before acquiring new customers.
The strategy was to first analyse the market trends, closely examining the sales results, of existing customers that had ceased purchasing, review purchasing trends and prices, and establish “Correct Pricing” for the demographic. From here, we needed to ensure we were meeting customer satisfaction and upselling and cross selling as an added benefit to the customer, this meant product education and assisting customers in reselling to their end user. After we had ensured satisfaction with our existing customers, our focus was then drawn towards acquisition of new customers, and bringing back the customers that had begun sourcing elsewhere.
As <Company Name> had an existing CRM in place there was no need to create a new CRM System. The resources we needed here where a Zent Database of Local business’s necessary for new customer acquisition.
- Marketing and Sales consultant’s used to research the existing trends and work on the pricing.
- Sales Representatives were used to engage existing customers, and acquire new customers.
- Design Team was used to create marketing materials for both <Company Name> and their resellers, in addition to newsletter’s and other advertising materials.
By the second month Zent had increased total profit by 15% and increased the new client base by 8% with new orders coming in the third month. A Marketing Plan for the next 12 months was established with reasonable forecasting to see by the end of the 12 months to have increased a strong client base by 50% and re-engage purchasing relationships with existing clients. Special Marketing activities were created in the form of advertising materials and exclusive offers, and loyalty reward programs to retain customers in the future.