Which New Techniques Need to Be Implemented for Growing Revenue
The wholesale distribution industry is facing a challenging economic landscape. Therefore, it must adapt and implement new measures to positively impact the bottom line and business sustainability.
Cross-selling is a viable strategy that can provide multiple benefits for wholesale distributors. These firms must take steps to implement cross-selling as a prime strategy to bring higher value. Cross-selling has yielded tremendous benefits for firms that have successfully adopted and implemented this strategy.
In order to leverage cross-selling, a number of relevant questions need to be addressed. For instance:
Which Market Segments Present the Best Opportunities?
The market should be examined with the help of analytical software tools to see which segment offer the best prospects. The customers may have different needs and may offer very different value potentials. Hence, it makes sense to prioritize customers based on analysis. The resulting data will tell which service or product offers the best revenue potential so that you can prioritize accordingly.
What Capabilities Will Be Required to Handle Such Operations?
Firms may need to expand their operations and adopt the latest technology to implement continuous improvement. Upgraded service offerings can increase the potential for distribution firms to cross-sell.
What Are the Incentives That Will Motivate Customers?
This will entail a mix of financial incentives, improved service offerings as well as other non-monetary incentives which must be aligned with customer needs.
How to Outline Cross-Selling Strategy and Execute It?
For successful execution, there clearly needs to be a fine balance between monetary benefits and the improvement in services that will make a positive contribution to the bottom line. Excessive monetary benefits will make cross-selling unprofitable and improvement in service which exceeds gains will make the process unsustainable.
Company sales data is a good starting point for cross-selling endeavors. However, savvy enterprises need to look beyond in order to obtain greater value. For example, a distributor for chemical products should examine hazardous chemicals and waste statistics available from government agencies. This will provide key insights that will reveal viable cross-selling prospects in waste management and water treatment sectors.
It is also important to identify attributes that lead to better cross-selling opportunities. Perhaps the easiest way to do this is to look up cross-sell clients that have been served recently. Identify the key attributes which facilitated successful cross-sell. These attributes may include regulatory commonalities, sector, size and location. It will also be necessary to prioritize these attributes.
The distributor will then have to validate these findings with field sales. Sales representatives should be employed across key regions to put the findings into practice.
These are some of the steps that can be implemented to increase cross-sell and thus drive revenue.
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