Following two years of revenue growth, a truck rental client set a goal to increase revenue by $1 billion over the next five years. However, the pandemic era’s high-demand environment fueled these recent years of growth and once the markets began normalizing, demand and growth fell short of historical earnings and growth targets. These trends revealed growth was driven by opportunistic selling behavior instead of proactive selling motions among core sellers.
After working with the client’s Business Unit A division on previous engagements, Alexander Group’s positive reputation with company leadership resulted in the client re-engaging with the Alexander Group for detailed sales design for their Business Unit B division.
Alexander Group completed a comprehensive evaluation of the client’s Business Unit B go-to-market strategy to identify its strengths and gaps. This evaluation informed a design roadmap to address these gaps, and we entered into a five-month detailed design phase. During the design phase, Alexander Group was tasked with leading all workstreams.
Comparing the client’s sellers to Alexander Group benchmarks revealed that Business Unit B sales representatives spent three times the industry average on prospecting activities but only 80% of the time engaged in selling activities. However, sellers who spent more time engaged in selling generated more revenue.
Alexander Group’s analysis also revealed that sellers spent 90% of their time with low- and medium-tier prospects. On average, these prospects only generate $1K in revenue, while high-tier prospects generate an average of $12K, indicating that sales activities weren’t focused on the right customers.
After completing these workstreams, internal client politics required the Alexander Group to pivot to teaching the client how to independently execute the following aspects of design once the engagement was over:
Following the detailed design and implementation of these workstreams, the Alexander Group anticipates that the client will see revenue growth of 7.5% by the end of the third year. The client also expects to see improvements in customer retention, share-of-wallet growth among existing accounts, capture of new accounts and optimized fleet utilization.
For organizations looking to drive long-term sales growth in a rapidly changing market, finding the right way to engage and incentivize their sales forces is crucial. Leveraging insights into what top organizations are doing, Alexander Group can help you design compensation plans to motivate your sellers. Contact us today to learn more.
Alexander Group understands your revenue growth challenges. Since 1985, we’ve served more than 3,000 companies across the globe. This experience gives us not only a highly sophisticated set of best practices to grow revenue—we also have a rich repository of unique industry data that informs all our recommendations. Aligning product, marketing, operations and finance efforts behind a successful sales organization takes insight and hard work. We help the world’s leading organizations build the right revenue vision, transform their organizations and deliver results.