How to Close the Sales Gap & Increase Revenue: Part 2
Continuing on from our previous blog about the importance of closing the sales gap, we invite you to begin practical steps toward closing the gap by using what you know to take your business further down the road with increased sales and revenue.
Not sure what that means? Hear us out.
First, when it comes to end-user companies that use fluid power, if they’re from the same industry, producing like product, they most likely have similar production processes and use similar tooling.
With that assumption, distributors of Fluid Power Products can begin to “close the gap.”
Here’s what that looks like:
- Identify an industry to target
- Build a profile on current end-user customers in that industry
- Take knowledge of those customers to develop sales tactics targeted at growing the company’s foothold in that industry
Step 1: Dive Deeper into Your Current Customer Base
Expanding sales opportunities outward is key to growth, but the approach outlined here begins with distributors taking a closer look at their end-user customers.The goal is to find end-user customers who:
- Are profitable
- Have good sales activity
- Buy products you are able to easily fulfill and are looking to sell more of
- What are their processes, and how do those processes require your product?
- What needs and technology is in use, and how does your product mix fit?
- What are some of their "pains," and how have you effectively provided solutions utilizing your products and services for these pains?
Important Note
Contact your manufacturers and suppliers for their insights about the customers and markets you are targeting. Manufacturers may have a different perspective on the industry which can lead to actionable insights.Talk to their sales or business development team to get their ideas for going after & creating new business. With luck, they’ll see the connection to how your company’s growth benefits them, and they’ll offer insights into different industry sectors that you can use to improve your sales and marketing efforts.
Step 2: Find Specific Companies to Target
To find companies from your ideal industries in an effort to grow your market share and close the gap in those fields, one technique to identify and locate prospective customers within your targeted industry is to employ a reverse SIC / NAICS search.First, query current customers with high sales activity and conversion rates, identifying their associated SIC/NAICS code(s).
Then, use the code(s) to search databases with publicly-available business information. One option is A-to-Z Databases, a public research tool often available through your local library.
Once you’ve entered the code and other options in the search, it will “drill down” and generate a list of specific prospects who are in the same market space as your best current customers.
Organize the list by targeted geography, removing anyone that doesn’t seem like a good fit, and highlight those of the most interest.
When this process is complete, you have a solid base from which to begin outreach to the resulting prospects, with the business name, contact information, etc. that will power your sales and marketing efforts.
Step 3: Begin to Close the Gap with Sales & Marketing
Once you understand your end-user customers’ processes, needs, and pain points, and you have targeted lists of other companies in the same industry, the prospecting work begins.You’ll approach these new prospects with knowledge and credibility gained from taking a close look at your current customers, offering to meet their needs in the same way you currently meet the needs of companies in the same industry.
Finding the right blend of sales and marketing efforts to generate orders and revenue becomes your next big challenge!