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What Table 9-4 says to the sales force is that the next best product to sell to XYZ company is pipe and that the annual sales could amount to $42,000 per year, based on the purchases made by other similar companies. These numbers can be produced for every company and given to the sales force. Each salesperson can be measured not only on total sales but on the ability to increase sales in these conquest categories.
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Computing the 10 Best Prospects
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Suppose that you are a business-to-business manufacturer with a sales force, each member of which has an assigned territory. Some of the salespeople are doing well, and some are not doing so well. The sales force may be company-owned, or it may consist of independent agents. In either case, you want to equip your salespeople with the most productive data to help them in their efforts. One vital sales assist is the NBP described previously. Even more powerful can be a top 10 prospects list developed for each unique sales territory. Here is how such a list is developed. A part of the next best product determination was the creation of SIC categories, broken down by small, medium, and large companies. Using that analysis, you can rank each of your existing customers by annual sales. This might produce a ranking for a single territory that looks like Table 9-5. For the top 10 analysis, we may arbitrarily con ne our attention to companies that have annual sales of over $100,000. There are three such Table 9-5 Ranking of Sales within a Territory
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Company G B C D E A F Total Sales $1,992,001 $ 889,445 $ 102,004 $ 56,002 $ 1,245 $ 317 $ 77 $3,041,091
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companies in Table 9-5. Because of the NBP analysis, we know the product that we sell the most of to each of these three companies and the companies total annual purchases from us, and we have categorized them as being large, medium, or small companies. We also know what categories of products the top three companies in this territory buy (see Table 9-6). Now let s go to D&B to nd all the companies (that are not current customers) in this particular sales territory that match the pro les of companies G, B, and C (the companies with over $100,000 in annual purchases from us). We may nd that there are 34 such companies. Table 9-7 indicates what the analysis will show us. Prospects that resemble company G are clearly the best prospects for future sales. And we know what to offer them: hoses. That is a nobrainer. Where do we come up with the next four to round out our top ten We have to pick, arbitrarily, four of the eight companies that are similar to company B. We can offer them switches. The way top 10 prospects works, however, we are not yet through with our analysis. In a typical process, each agent is linked to the central database by a Web interface. When an agent logs on to the database, he sees a list of all his customers, together with the next best product for Table 9-6 What the Top Three Customers Buy
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Total sales Hoses Fasteners Valves Pipe Wire Switches Connectors Total $ 6,001,000 $ 778,001 $ 1,002,000 $ 9,001,000 $ 339,000 $ 603,000 $ 46,001 $17,770,002 Total Average buyers per buyer 220 198 18 144 201 22 32 415 $27,277 $ 3,929 $55,667 $62,507 $ 1,687 $27,409 $ 1,438 $42,819 Company G $ 889,554 $ 19,646 $ 478,003 $ 312,535 $ 8,433 $ 276,881 $ 7,188 $1,992,240 Company B $227,665 $ 3,929 $ 55,667 $ 62,507 $ 1,687 $545,667 $ 2,434 $899,555 Company C $ 19,882 $ 1,965 $ 27,833 $ 37,253 $ 843 $ 13,705 $ 719 $102,200
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