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With his management team already challenged with existing responsibilities, Ribinski recognized the need for an outsider to help manage the process."For a change process like this, it helps to have someone who's not impacted by the process leading it," he says. So he turned to Dick Van Belzen, managing director of Northpoint Advisors, to shepherd the process, dubbed "Project Canandaigua.""We needed an experienced person for a short time-line and I knew that he had done similar things for other companies successfully," explains Ribinski. See the rest of the story »
Situation: A small biotech company had invested three years developing a patented new product but had been unable to bring about its first sale.
Response: The problem was that the product's value proposition set was not fully expressed and communicated. The new product’s benefits and value varied significantly by customer, based on the application. To address the situation Northpoint was involved in proposal development, account targeting, sales call preparation, and actual sales calls.
Results: The first order was taken within 90 days of our involvement. The price of product was increased by 30%, building in recurring revenue streams for future years.
Situation: A mid-sized systems integrator and distributor had revenue and gross margin declines. The company had been a performance leader but was now limited geographically by the lines it was under contract to sell and support.
Response: The business model was reshaped to give the company better revenue balance within its operating constraints and long-term viability. New revenue growth was targeted through the addition of systems integration services, which had higher gross profit yields. Two new areas of business were also intensified because they offered higher margins and were closely linked to existing core technologies.
Results: The new strategic areas will now represent 70% of new business for this company.
Situation: A small materials handling and packaging company had had flat sales for a number of years. It had recently introduced a new product line that was slow to generate sales revenue.
Response: By targeting customers using a behavioral timeline analysis and assessing the overall business model for the business several significant major accounts were identified and closed. The price of the base product was increased by 12% and margins of supply items were improved. Longer-term agreements were put in place and services revenue streams identified and implemented.
Results: The overall revenue for the company doubled in the first year of this approach and gross profits grew at an even higher rate.
Situation: A $350 million division of a global company was losing market share and had high sales rep turnover in certain US markets. The market share in those locations was 50% less that in other areas and further market erosion was expected. The market model had changed and the company was no longer in step with other coverage approaches.
Response: The direct sales force was realigned to other markets and replaced with existing businesses that were more visible and had higher loyalty attributes. The direct sales reps were redirected to key accounts and to launching more technically challenging products.
Results: Profitable revenue more than quadrupled in the 3 years following this alignment.
Situation: A small systems integrator had just lost a client that accounted for 50% of its revenue during the past several years.
Response: Northpoint assessed current and past clients for potential opportunities. A roster of prospect accounts was developed with a target plan to approach and develop. The business model was refined and an integrated communications program was shaped to offer long-term awareness and presence in the space for this company.
Results: A new account was found to replace the revenue from the former client at double the gross margin. Other accounts were also identified that produced additional revenue to further strengthen the company’s financial position.
Situation: An industry leader had faced delays in orders during the final quarter of the year. Customers were hesitant as they observed a technology shift similar in extent to the universal nature of UPC bar codes and were waiting to see which technology would be deemed the new standard. This hold on buying resulted in a potential revenue decline of $25 million.
Response: Since the client owned both technologies, Northpoint developed a technology exchange program to remove any perceived risk customers faced in selecting one over the other. The program was conceived and launched within 45 days with sales and integrated marketing communications effort.
Results: Northpoint delivered $35 million in pent-up demand through implementation of its program, which competitors were unable to counter.
Situation: A former industry leader engaged in an effort to double its current market share within 5 years.
Response: Northpoint facilitated a team that analyzed the situation by commissioning primary and secondary research instruments. The result was a 7-point plan that this study team initiated during a 6 month period.
Results: Combined with ensuing execution the plan led to a rebound and doubling of the client’s baseline market share within 4 years. This response involved realigning various operations, changing coverage, introducing new approaches and ending programs that didn’t or couldn’t work. Besides market share there was a critical need to grow profitable revenue, which was accomplished. As a result, this company began to reassert itself as the industry leader.
Situation: A small services firm needed to stimulate growth to meet the expectations of investors and pent up demand in the marketplace. Its customers were small and were spread across the US.
Response: A major account strategy was employed that targeted specific companies fitting a profile of this client's best most profitable solution.
Results: Sales coverage costs were reduced and penetration of large customers was attained in a 90-day transition period. Monthly revenue increased by 250% during an 18-month period. |
