This year is quickly coming to a close, and many business leaders in the manufacturing and distribution industries are exploring and setting new strategies to achieve profitable growth in 2018. As they undertake this annual task, there are two important questions they need to answer. The first: where will this growth come from? And second: how will strategy translate to aligned execution across the organization?
Where, exactly, will growth come from?
Most company growth strategies focus on the acquisition of new customers, despite the fact that it costs five to 20 times more to acquire a new customer than it does to sell to an existing customer. A recent Forbes article reinforces this point, “Acquiring New Customers Is Important, but Retaining Them Accelerates Profitable Growth.”
To hit company growth targets in 2018, company leaders should focus inward to expanding its existing customer relationships. When it comes to growing these accounts, there are three ways companies can expand their economic value:
1. Keep customers for longer
2. Sell more to them
3. Price more profitably
These three factors are essential to customer lifetime value, and the decisions and actions that front-line sales teams make daily will heavily affect whether they are moving in a positive direction or not.
How will the strategy translate to aligned execution across the organization?
Often companies are relying on their sales people to execute on strategies using their own intuition and customer knowledge. This results in a strategy-execution gap that ultimately falls short of hitting their goals. Without a way to reliably execute, measure and scale a strategy, business leaders might as well be throwing darts blindfolded.
But, by combining strategy with the right data, tools and approach, AI and machine learning solutions help manufacturers and distributors translate business strategy into a predictable and reliable means to hit their numbers in 2018.
To learn more about how AI helps B2B companies hit their numbers, watch this on-demand webinar.