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Generate New Sales As Economy Changes
The Challenge
Third-generation sign manufacturer Hanover Signs had good relationships with customers, a great reputation for quality and a steady influx of business. However, in 2002 as the economy turned down, Hanover had to face the reality of employee layoffs. Customers who had been a reliable source of business were cutting back on their growth strategies, which meant they wanted fewer signs and/or signs of lower quality and at a lower price.
Hanover contacted Kelly Allan Associates, Ltd. to assess the business and to help the company generate new sales.
The Outcome
Kelly Allan Associates, Ltd (KAAL) worked with Hanover to adapt to the new marketplace and to restructure its marketing and sales.
Process improvement to reduce cost and prices
In 2001, KAAL worked with PIA and Comp Management (the administrator of PIA’s plan) to “change the Workers Comp game,” with a focus on the sales force:
- Simplified marketing materials: changed from 38-page packets to10-page user-friendly folders
- Revised the agent sales training process
- Gathered and reviewed data to profile ideal agent, customer, etc.
- Segmented sales success by tier to better meet agent requests for information, and to reduce costs
- Developed a “Competitor Comparison” worksheet so agents could help their clients compare Workers Comp plans
- Assessed 2001 sales results and advised PIA staff and board on what strategic issues would be most critical to further success in 2002
A Focus on the Sales Channel
Hanover was not set up to produce the lower-end signs that customers wanted. Their factory, corporate culture, and sales systems were geared toward high quality, long-lasting, higher cost signs. Lower cost signs, however, were essential to sales in the new economy.
KAAL worked with Hanover to find ways to cut costs from the sales, manufacturing, and customer service processes – without sacrificing quality. This included areas such as reducing the design-to-engineering cycle, and sourcing new suppliers.
Marketing to generate sales
KAAL helped Hanover to develop a strong marketing and sales program to reach more prospects, faster, and at lower cost. This effort included:
- Database of customers and qualified prospective customers.
- Direct mail marketing letters with tracks targeting several different types of industries.
- Customized marketing and sales messages and call scripts for each industry track.
- Letters of reference that spoke to the aspects of Hanover’s quality most important to customers in the weak economy.
- Re-designing proposals to focus on the aspects of sign quality and pricing that were most significant to potential customers.
- “Capabilities” list detailing Hanover’s unique credibility, experience, engineering expertise, and other qualifications that were of special significance to each prospective customer.
- Sales training that helped the sales team shift to using new processes and sales techniques.
The Results
Within weeks, the sellers were able to make contact with new, potential customers – and they had new, more effective messages to communicate about Hanover.
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“I want to thank you for helping us with refocusing our marketing and sales, and for bringing us up to date on what a disciplined marketing program looks like these days. The high leverage components you’ve helped us with have resulted in us getting more appointments, the opportunity to write more proposals, and the ability to close more deals. I look forward to a continuing association.”
~ Michael Hanover, Sr., CEO
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Challenge: Third-generation sign manufacturer is hit by the bad economy of 2002; seeks advice on what to do to generate new sales.
Outcome: Kelly Allan Associates, Ltd. evaluates marketplace realities and helps recreate their positioning and competitive strategy.