Background
This company improves manufacturers’ efficiency and productivity by offering manufacturing maintenance solutions and IT services. They believed they were delivering more value than customers were willing to pay — yet they struggled to clearly explain the business value they create for customers. They needed to increase their own operating profit.
Sales challenges
Too many sales cycles dragged on while prospective customers were trying to understand if it was a good deal for them. And there were too many unqualified opportunities in the funnel that couldn’t be identified early enough. Their propose-to-close ratio was way too high.
Solution
Pretium was selected because of their specific focus on value assessment and because of their familiarity with the outsourcing business. These two areas of expertise proved to be effective when training their sales force and marketing management.
Results
The company had the confidence to increase prices and were able to justify them. Operating profits increased by over 500%. The sales force has become much more productive. By using a preliminary business case to outline business value, non-qualified prospects were dropped from the funnel before resources were committed to time-consuming activities such as due diligence, statements of work, and proposals.