Wendrickx & Partners - Success stories
REFERENCE: IT Integration Business unit of Publicly Quoted Company
Customized Business Solution Increases Average Sale by 15%
This business unit sold like most IT sales organizations primarily to IT departments. Product suite is comprised of web development, software development and technical services. The Business Unit is Microsoft Gold Certified and also IBM Business Partner. The company is a business unit of a company quoted on the Amsterdam stock exchange.
The company has a direct sales staff of 15 sales managers and account managers divided over 3 groups , who are supported by 5 presales consultants and implementations are carried out by their own 200 consultants.
Competition comes from other system integrators.
Average sell cycles lasted up to 6 months for contract revenues of only € 50-80K. The sales teams were always in heavy competition and this resulted in investment in pilot environments to prove their capabilities, heavy discounting and low margins, whereas the corporation manages all units on EBITDA.
Sales Director in charge of Business Unit IT
CRITICAL BUSINESS ISSUES
Not meeting Sales Goals and low sales margins
The Sales Director in charge of confirmed that the reasons for this were:
· Selling technology transactions versus business solutions
· Inaccurate forecasting, ineffective resource utilization
· Discounting during price negotiations
· Poor pipeline management, each group used its own method
The sales Director in told us that he wanted to see a common sales process over the 3 groups and that when his sales staff would proactively approach potential customers, they would see their usual contacts at IT as their potential sponsors only and climb the organization chart to de decision making units and prove value to the business units. His goal was to increase revenues by proving the created value to his customers’ profit centers.
WENDRICKX & PARTNERS PROVIDED THESE CAPABILITIES
Over the last 4 months he has developed a strict procedure where his sales team uses the sales method on all potential opportunities over € 25.000, sales staff have to prove the need of presales support based on a win plan, sales meetings are strict PPVVC meetings and this has resulted in more constructive sales meetings, better pipeline management and an increase in sales revenue against the market of 15% on an annual basis, which will make the unit compliant to the corporate requirement on EBITDA attainment. The company is also implementing Mondo AS’s Microsoft Dynamics CRM add-on to support the methodology full force.