Improve Margins
Title: CEO
Industry: Temporary Staffing
Company: $120M, privately-held
Goal: Improve margins while maintaining revenue growth
Result: 50% improvement in gross margin while maintaining revenue growth
With an impressive history growing top line revenue, the Company devoted substantial time to generating proposals. In a market with buyers fixated on price and little perceived service differentiation between competitors, the Company positioned itself by offering a full range of services. Proposals promised high end service with pricing often only sporadically linked to the service level and/or the unique costs of service delivery. As a result, revenue growth often did not result in margin growth.
The Company needed the sales organization to
- Generate a higher volume of qualified prospects,
- Establish value by specifically matching the prospect’s needs to the Company’s capabilities;
- Price engagements in accordance with the specific services the prospect identified as solutions to current needs; and
- Close only those prospects that represented opportunities to generate targeted margins.
In order to disqualify low margin opportunities, the Company had to generate a greater volume of high margin opportunities.
By providing the telesales organization with conversational prompters and defined qualification criteria, BizLogx helped the Company increase the number of appointments with qualified prospects. BizLogx then helped the sales reps use diagnostic questions to uncover hidden costs, identify customer value, reduce the customer’s focus on price and accelerate sales. With these new skills and tools, the Company increased gross margins on new business by over 50% while maintaining revenue growth.
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