The challenge permalink
We worked with a business that had consistent revenue base but lagged its competitors in growth. Over 70% of revenues came from one customer. Management had tried to hire their way into growth by bringing in experienced sales professionals, but lacked strategic insight to follow through.
The Virtuoso approach permalink
We performed an analysis to understand the segments of the market where the company could compete for contracts. That analysis uncovered a misalignment between the company’s business development targets and its operational capabilities, both actual and perceived. The nature of the contracts required long-cycle sales strategies rather than the short term methods employed by the sales team.
Our solution was to restructure the sales organization and create an incentive plan that rewarded activities related to lead conversion rather than volume of activity.
The results permalink
- Fixed selling expenses as a percentage of sales dropped by 15%, which improved cash flow
- The new sales team grew contracts with new customers that reduced the concentration to below 58%
- Contracts with their main customer grew in size and the company was able to access new divisions which improved revenue diversity
Now is the Time permalink
Virtuoso Strategic Group is a boutique consulting firm formed to deliver extraordinary value to its clients. We pride ourselves on alignment with the fortunes of our clients and an unwavering commitment to their success. We welcome you to start the conversation today.