By Cultivate | December 12, 2021
Since our key competitor Binder Adhesives closed six weeks ago, we’ve seen healthy increases in leads and sales on small orders. We’ve generated 52% improvement in SMB sales this month. We are currently bidding on contracts to win over two of Binder’s largest customers. However, we’re finding that meeting their volume discount demands a significant challenge. I’ve been crunching the numbers with Justin and Ken all morning.
Ken looks up from his spreadsheet, shaking his head, “Sam, these margins are really low. Make no bones about it, meeting their pricing demands will put our profits in jeopardy.
Justin, do you see any areas where we could streamline operations?”
"Sam, a pessimist is an optimist with data. Jokes aside, I have analyzed methods to increase efficiency and productivity, reduce waste, and lower costs. The pricing that they are asking for will hurt us in the end. It is not a win-win. And I question whether they will be a good customer if the relationship starts out with this type of demand before we enter into an agreement. What will they demand on-going?" Justin cautions.
I reply, “I suspect that my good friend Peter Binder succumbed to pressure from these same customers and that may have led to Binder’s demise."
Now, on the other hand, the orders from mid to small sized customers are profitable,"I continue. "And, we are getting positive feedback about the purchase experience."
Let’s share these observations with the rest of the Rev Ops team. Also, let’s take another look at our ideal customer profile. In addition to positive attributes of ideal customers, we also need to look at the types of customers that we want to avoid.
Sharon has compiled data and research from multiple sources to help us further define our ideal customer and customer experience. She is ready to share her insights with the team.
I start our weekly Rev Ops meeting: “Good to see everyone. I trust that you’ve had a good week so far. Today, I’d like to accomplish two things in this meeting.
"From there, we will work to come to a consensus on the attributes of our A and B customers and land on our Ideal Customer Profile, or ICP for short."
"I’d like to turn the meeting over to Kay, who will guide us through the group discussion."
“Thanks, Sam. The ICP will be distributed organization-wide and will affect downstream sales and marketing efforts. It also creates focus on scalable and repeatable strategies and tactics to engage and convert top accounts.
"In addition, the ICP will drive target account list creation, segmentation, organizational structure and other key activities, Sam continues."
“I’ve outlined the ICP worksheet on the white board with the categories industry, geography, size, pain points, etc. Everyone please take a few post-it notes from the table, and let’s start writing down the attributes of accounts that are expected to become a company’s most valuable customers and add your notes to the categories on the white board."
Everyone is engaged and jotting down their ideas on post-its.
Brandy quietly starts rapping an ICP song to herself. Kay, Sharon and Sam smile at her.
We take a short break after a productive discussion. Next up, Sharon will present her research findings, which will set the stage for completing the ICP and then mapping the customer experience.