Capturing incremental Business
When a dealer of agricultural equipment is doubling their equipment sales, it comes as a surprise to see its parts and service sales decline. Upon recognizing this fact and witnessing its potential to inflict long-term damage on its business, an agriculture equipment dealer in the Midwest engaged Channel Economics to identify the cause of this problem and advise a solution to increase its sales of parts and service.
In order to obtain a deeper understanding of what our client’s customers wanted and needed, we surveyed them about how, where, when and why they purchased parts and service. We also examined historical buying patterns to determine who was buying what and when they were buying it. Last, we reviewed the selling processes of line-level employees to discover if there were any process or communication issues that were inhibiting them from selling parts and service to customers.
Once we established a robust analysis of the dealer’s market and parts and service business, we were able to identify specific areas of opportunity to drive revenue. This enabled us to work with the dealer management team to develop and implement a detailed parts and service growth plan. It also enabled us to maximize the dealer’s share from customers who were buying parts.
As a result of the work we identified $25 million worth of opportunities over a three-year period of time. Our client is actively pursuing those opportunities through the implementation of our plan and has already realized significant growth in parts and service.