Founded 45 years ago, Pompco is a small player in the saturated Canadian water pump market. For years they struggled to crack the ten million dollar mark in sales, but they just weren’t getting there. Three years ago, a new sales and business development director was hired, and a key mission was set for the team: to double the annual sales within a few years and break into the double-digit millions.
Doubling sales in any mature market often means doubling market share, which could seem like a “mission: impossible” situation! Let alone in a highly competitive and saturated market!
The team tackled the challenge directly by applying multifaceted sales management tactics supported by sophisticated back-end data manipulation and analysis. Today, within just three years, the pump manufacturer is set to not only meet, but surpass its incredible goal of doubling sales.
Read on to see how Pompco initially labored through with manual data analysis to implement a sales penetration strategy. Later, they leveraged Grabb AI to deliver such great value to customers that they kept coming back for more – average sales penetration per customer went from 25% to 90%!
… average sales penetration per customer went from 25% to 90%!
- Double annual sales from the single-digit millions to double-digit millions within 5 years
- Implement sophisticated knowledge and data-driven sales management processes that allow for greatly improved sales penetration on a per customer basis
- Deploy state-of-the-art sales artificial intelligence (AI) in the context of B2B with repeat business to greatly reduce customer churn
- Deliver industry-setting sales penetration-based incentives to customers, setting them up for a win-win relationship
- Automate knowledge-driven and data-driven sales management with:
- Granular sales budgeting process
- Detailed sales penetration knowledge on a per customer basis
- Reduce churn greatly: from approximately 9% down to only 0.45% (in terms of annual revenue lost)
Building a knowledge-driven and data-driven approach to growth
Within a few years, Pompco has taken a significant share of the Canadian water pump market. And it did so without requiring any major investments or operational overhaul.
This is a major achievement considering that they are in a mature and saturated market. Pompco was able to increase its sales by such a magnitude primarily by increasing sales penetration with each of their customers.
Customers were incentivized to give a much greater share of their wallets for water pumps. There is a key requirement to be able implement such a strategy: each sales professional must consistently have a good grasp of the firm’s sales penetration performance with each client throughout the year. On an implementation level, this can be challenging.
In the first year and a half, before Grabb AI came to Pompco, the director of sales implemented new data-driven processes and tools. Through these processes, it was discovered that the average sales penetration per client was not 90% as was previously thought, but only 25%! These processes were supported by very complex Excel files with overscaled formulas, implementing a granular sale budgeting system and detailed budget achievement tracking system.
These manual processes performed sufficiently well to allow Pompco to increase sales by 26% in the first year. Unfortunately, the use, update, and analysis of these complex Excel files was extremely laborious and left much to be desired.
To double down on its proven sales penetration strategy, Pompco turned to Grabb AI for its solution that promised automated knowledge-driven and data-driven sales management. In particular, the team was interested in these functionalities:
- Exceptionally fast, precise, and granular sales budgeting process
- Instant detailed sales penetration knowledge on a per customer basis over time and location
“In summary, I didn’t have the kind of [actionable] information that I needed. Before, I was in the dark, now I’m in the light with Grabb [AI].”
After only 9 months of using Grabb, the team was surprised to discover the power of modern sales AI. One area that stood out in particular was the functionality that alerted the team to clients that were beginning to disengage. This tool was found to be remarkably accurate and helped them reduce churn from approximately 9% down to only 0.45% (in terms of revenue lost). See Jean-François’ testimony on this here.
“[Grabb AI] helped them reduce churn from approximately 9% down to only 0.45% (in term or revenue lost).”
Learning from Pompco’s success
In the context of B2B with repeat business, if your sales team is not keenly aware of sales penetration on a per customer basis, you could be at a decisive competitive disadvantage.
Some modern sales AIs are capable of singular predictive performance that you, as a sales manager or director, should be aware of. Being alerted immediately on which customers are beginning to stray to the competition is a crucial element in keeping your churn rate low. Once a customer has begun to adopt competitive offerings, it is much more difficult to bring him back.
“Once a customer has begun to adopt competitive offerings, it is much more difficult to bring him back.”
Get started quickly with sales AI
As Pompco continues to grow quickly, Grabb AI acts as an automated personal data analyst that helps them keep clients from falling through the cracks. In utilizing Grabb AI and benefitting from its efficiency, Pompco is able to handle far more accounts and territories with the same numbers of employees on their sales team.
If, like our client Pompco, you would like to see how modern sales AI could help boost your team’s sales in the context of B2B with repeat business, book a chat with one of our experts. They will be able to guide you on how AI-powered functionalities and automated sales management tactics could fit into your sales department.
ABOUT THE AUTHOR
Minh is Grabb’s CEO. Since the company’s founding, he has constantly driven product innovation to help sales teams perform more efficiently.