National Distribution Company

Situaton

  • A national distribution company has national agreements with a significant number of large companies
  • Most of these large national companies have multiple locations – some with substantial geographic dispersion
  • There was unclear accountability for communicating the national agreement across these widely dispersed locations; with varying support from national account managers, local sales reps, and internal champions at the accounts
  • Qualitative research indicated that purchasing and awareness were low across many locations within these accounts
  • These non-buying national account locations represented a significant unrealized revenue and customer loyalty opportunity

Objectives

  • Develop and test a pilot program to expand product and service offerings within key national accounts

Approach

  • Select national account managers and accounts to participate in a pilot program
  • Set up control group to secure an objective pilot performance measurement
  • Develop process, tools and feedback mechanisms to help drive growth
  • Build a national account location database
  • Use inside sales to increase national agreement awareness and to identify sales opportunities for product/service offerings
  • Identify, target and convert additional non-buying locations within key accounts
  • Develop action plans to help identify and save at-risk accounts

Results

  • Generated 1,400 new qualified opportunities in 35 participating national accounts
  • Grew revenue of pilot accounts by 30% in 4 months while also helping to lower operational costs
  • Increased account penetration (percentage of buying locations) from 30% to more than 80%
  • The initial 6 accounts resulted in $5 million of additional incremental revenue
  • One of the accounts had an incremental revenue potential of $11 million
  • Improved customer loyalty metrics