Client Realizes Significant ROI Using Brookeside INSIGHT™
Brookeside has been engaged by a client to improve the strength of relationships in order to maximize lifetime account value with greater retention and share of wallet.
Brookeside’s Relationship Assessment® process benchmarks individual respondents with our proven behavioral model shown to accurately forecast future buying habits of key business to business relationships. The output is a highly accurate classification of the buyer’s state of mind and is as follows:
A Trusted Advisor is truly loyal and will openly ignore competitor offerings. They are generally open to expanding their relationship and providing referrals.
A Predisposed buyer is looking to continue doing business with you. They might consider other options, but only if a substantially better offer was made.
A Transactional buyer is not necessarily unhappy with the relationship. They are aware other good providers exist and are willing to respond to those competitive offers.
Antagonistic identifies those who view the relationship negatively and are actively working to reduce spend with you. They are likely, when asked, to discourage others from doing business with you.
Significant return exists when these buyer classifications are connected to actual dollars spent, spend history, and current share of wallet.
As seen in the graphs, Brookeside consistently finds nearly a 2.5x increase in share of wallet when moving buyers up to the Trusted Advisor relationship status from Transactional or Antagonistic. This means easily selling more to current clients.
RELATIONSHIP ASSESSMENTS FOR THIS CLIENT HAVE IDENTIFIED:
• That 12% of install base revenue is at risk of being taken away by a competitor
• That 129% revenue growth can be achieved by maximizing Trusted Advisor relationships
NEAR-TERM ROI FOR THIS CLIENT:
• Identify and take action on at risk relationships to prevent revenue loss
• Maximize under performing Trusted Advisor relationships
The following case studies represent examples for each of these opportunities to show significant ROI. Returned value from Relationship Assessment is multiplied many times over as our clients capitalize on each identified opportunity.
Saving $250,000 in Lost Business
KEY CLIENT FEEDBACK:
“[This client] has been my one and only go-to consulting stop for the past 7 years but based on the current lack of communication and resource availability issues I have been forced to engage other firms. They are great to work with and I really hope they get those two issues addressed quickly.”
Brookeside alerted the client immediately upon receiving the feedback. The client participated in a one day Action Planning workshop to maximize program results. A 90 day action plan was put in place to address the specific client concerns. Management was engaged and supportive in creating and implementing the action plan and ensuring follow through.
The problems have been addressed, communicated, and improvements are being made. Overall, the relationship is improving. The client again feels valued and has maintained their current level of spend. For the future the company has started to earn back some of the broken trust that would have led to lost business.
This account was discovered during an Initial Engagement priced at $40,000. Initially saving $250,000 with this one account represents a 625% return on the project value in the first year. The client expects to see greater ROI as the share of wallet increases in coming years through better relationships.
Additionally, the Initial Engagement resulted in a nearly 40% response rate providing numerous targeted and actionable opportunities like this example.
Finding $500,000 in One Relationship
KEY CLIENT FEEDBACK:
“The only thing I can think of is to have sales folks reach out to client[s] more often to meet and discuss new technologies and potential needs of clients. To establish more of a relationship…”
Brookeside identified this relationship as an under performing Trusted Advisor calling out for more attention. Management was presented with an executive review followed by a 1 on 1 coaching and planning session on this strategic account. The result was a plan of attack for management and the sales team to grow their share of wallet with this dependable million dollar account.
The strong relationship that was already in place has continued to develop. The client is now better positioned to capture upcoming purchases being made by their client. Additionally, the action plan has resulted in the buyer actively recommending the company to other divisions and peers.
This account was discovered during an Initial Engagement priced at $40,000. The client expects to grow the $1,000,000 account by 50% or $500,000 in the first year, significantly beyond their initial forecasts. This represents a 1250% return on the project value in the first year with further upside as their reach is expanded through referrals.
Additionally, hearing from more than 31% of the companies they work with exceeded this clien’t expectations and has provided more focus for their sales team.