INDUSTRY
Energy & Utilities
This company is a Japanese multinational providing commercial optical and lighting solutions. Despite supplying over 7,000 customers, they were making a £1.7 million loss in their commercial division.
Their labour turnover was 33% and the Business Development team was disengaged and unproductive with declining profits and annuities.
The Challenges:
- Declining margins were being squeezed by 5% per year.
- Declining annuities due to market forces and price erosion.
- Brand and service offering not clearly defined.
- An under-utilised professional services division.
- Top 20 customers produced £1.8m of the total £8.5m revenue with a low average sale value of £4.5k.
The Avondale Strategy team worked closely with the board to carry out a macro analysis and market sizing exercise to establish market opportunities and trends.
The Solution:
- The existing client base was leveraged to allow a new target audience to be identified; subsequently the marketing division was re-aligned to provide a new vertical and horizontal value proposition.
- The existing route to market was challenged along with the skill set within the Business Development teams.
- Through assessment and training, a new Business Development, Consultancy Service and Service Delivery division was established.
- This was combined with training of existing personnel to provide world class consultancy services and customer experiences to the new target audience.
The Outcome:
- The company generated £3m of new revenues from larger corporations and established a £20m pipeline of untapped business.
- The turnover of staff reduced significantly, resulting in a 60% drop in recruitment costs.
Margins were maintained and annuity revenue per customer increased by over 800%.
