Customer and Market Audits
World-Class
sales organizations strive to become the undisputed vendor of choice in
their markets. Loyal customers are substantially more profitable. Loyalty,
however, has less to do with the features of the product or service
sold than with the ability to guarantee the resulting benefit the
customer seeks.
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THE
CHALLENGE |
World-Class sellers commit to three basic principles to acquire "Customers For Life":
1. Identify all the factors needed to guarantee the customer's business result using their products.
2. Wrap all necessary added value and service around the product that guarantee that result.
3. Monitor, manage and assume responsibility for added values and results on behalf of their customers.
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THE
SOLUTION
|
Just as an objective and comprehensive financial audit is needed to evaluate an organization's financial condition, Customer and Market Audits provide the Total Quality Management (TQM) level of measurement needed to win "Customers for Life." Guaranteeing the expected bottom-line benefits requires more than a Customer Satisfaction Index. |
BENEFITS
|
A Customer and Market Audit is a powerful, predictive sales and marketing management tool. Chally Customer and Market Audits accurately identify and measure the key factors that influence customers' purchase decisions. While each is individually designed, typical audits, at a minimum, produce:
- accurate segmentation of markets
- key benefit sets each market require
- measures of product/service value
- comparisons against competitors
- measures of salesperson performance
- precise customer satisfaction scores
- tactical and strategic solutions
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METHODS
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The audit process has been designed to utilize the most effective research techniques available today.
Data
collection includes hard data measures of sales effectiveness such as
volume, margin, market share and growth. In-depth executive interviews
with large cross-samples of customer decision-makers involve all
appropriate levels within the customers' companies, and include both
quantitative and example based qualitative information that identifies competitive strengths and weaknesses. |
STATISTICAL
ANALYSIS
|
Qualitative information is additionally converted to scorable metrics.
Comprehensive statistical analyses are used to identify the relative impact that changes in products, services and other sales and marketing tactics may have. The effect that any relative gains against competitors will have on bottom-line criteria, such as sales volume, margin and market share, can also be estimated. |
RESULTS
|
Results
are provided in both executive summary and comprehensive tables
documenting baselines and all relevant statistics. Core benefit sets
for each market segment as well as both absolute measures of
performance and comparisons to competitors are detailed for each
relevant performance factor and each significant competitor. In
addition, individual ratings of salespeople or other customer contact
people can be provided to document training and development
requirements.
Customer reaction is very positive. Chally
extends the courtesy of full disclosure as to sponsorship and purpose.
Customers and prospects receive written explanations and are
individually called to solicit cooperation and schedule appointments at
the customers' convenience. Typically, 50-80% of customers contacted are willing to invest a half hour or more to provide detailed information, evaluation and opinion. In fact, Chally is frequently asked by interviewees for information about doing their own audit. |
CASE STUDY
|
Major
Aluminum Company had been selling a variety of its products through a
geographically distributed sales force that represented essentially all
their products to all prospects or customers in their territory. A
market audit, however, identified several market segments with
requirements so distinctive that specialized sales approaches were
needed to compete successfully against niche specialized vendors. Based on Chally Market Audit results the Company reorganized and applied new tactics. The first
trial application focused on one major segment: Automobile
Manufacturing. The results were dramatic. The shares of each
manufacturer's total aluminum purchase in higher profit categories were
increased substantially with all three major customers targeted. And
this was accomplished in one model year.
|
Market Share |
| General Motors |
10% to 25% |
| Ford |
4% to 48% |
| Chrysler |
0% to 33% |
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ADDITIONAL
BENEFITS
|
One of the most critical benefits of a professionally done customer audit is credibility. Traditional and well-experienced salespeople accept the legitimately documented voice of the customer. Internal administrators, operations and technical staff are often pointedly interested in unfiltered feedback from customers. In many cases, audits have stimulated people at all levels to get directly involved with customers. This leads to relationship building, and understanding customers in ways never before considered. |
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