May 11, 2009   Posted by: Emcien

Help the sales team help the customer

This morning I was talking to the VP of business process improvement for a company that sells industrial machinery. Their products are highly configurable. She told me that every year they have 50% new configurations they have never seen before. The number of choices on their products has grown over time. ”A salesperson can’t know everything about the product,” she said. “Customers want a few choices, and before you know it, the quote has crept into a configuration that’s bad for the customer and bad for us. “

As the VP explained, the biggest opportunity for complexity management is at the point of taking an order. A customer wants to be guided to complete their order. This concept is called Demand Shaping. There are myriad ways a configurable product can be ordered.  However, each customer cares only about a few features that are of high importance to him or her.

The ability to take that input and guide the customer by completing the configuration is invaluable. This also presents a tremendous margin lift opportunity by guiding the customer away from configurations that are bad for the company because they have warranty issues, parts delay issues, supplier issues. I hate to sound cliché – but it’s a win-win situation!

The salesperson’s line to the customer: “Help me to help you!” :)

And tying back to my earlier posting, When the tide goes out, the VP said that volumes are declining. It is forcing the company to take a hard look at all product offerings, especially the bad ones.

One comment
  1. kartik
    May 12, 2009

    Interesting stuff to read…