Case study №7 – sales process optimization in a professional apparel company
Client
Some time ago, we were approached by a private company based in Greece, which operated 15 apparel stores in different major towns throughout Bulgaria, as well as a fairly popular specialized professional clothing website. The entity’s average revenue (for the last 3 years) was approx. BGN 8.2 million. Revenue split: 20% production (own brand); 75% resale and distribution; 5% other services. The client had experienced an average annual revenue drop of 2.6% for the last 3 years.
Challenge
The client asked us to look at their sales processes (including marketing) and commercial teams, for the purpose of reviewing existing practices and recommending improvements. Management requested complete overhaul recommendations for their sales department structure and processes for the purpose of improving the customer conversion and retention rates on existing product lines, as well as incorporating several new product lines and target markets in the existing commercial model. The company management believed that sales were down due to issues within the sales department, with no apparent deviations in other factors, variables and general market forces.
Approach
Our consultants observed the existing revenue processes and sales team dynamics, interviewed key staff members and reviewed any relevant revenue-related documentation, including key customer contracts, invoicing and credit department practices, receivables ledgers and ageing. We reviewed the order-to-sale process, website and physical customer experience, as well as related IT and ERP applications. We thoroughly documented all tests and procedures performed, as well as key findings.
Results
As part of our sales team and commercial processes optimization service we produced, for company management purposes, a detailed report, which included our approach and procedures performed, as well as all the quantitative and qualitative data we collected, analysed and presented visually. The report took approx. 15 business days to complete and managed to:
- identify several marketing and user experience shortcomings
- suggest 3 alternative process structures to improve efficiencies
- point out 2 sales-team weak links (in terms of personnel and team roles)
- suggest one improvement to customer credit policy
- develop several new customer service protocols
- recommend several sales software improvements (and recommended existing off-the-shelf solutions)
- overhaul the entire bonus and incentives scheme for sales staff
Approximately 95% of our recommendations were introduced by mid-year – by the end of the fiscal year total revenue was up by 3.7%.