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Case Study - "Simplifying Marketing to
Reduce
Costs and Increase Sales"
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Company Description
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$7B Computer Reseller, System Integrator, and
IT Outsourcer |
Company Situation
and Problem |
Acquisition created two large, overlapping sales and customer service
organizations with over 1500 people, and two complex overlapping marketing
organizations with different go-to-market strategies. Market messages were
inconsistent. Substantial conflict existed about "go-to-market" strategies,
with very little cooperation between marketing and field sales organizations.
Measurements and financial controls were lacking. Comp plans were in disarray
with many upset over not receiving promised bonuses. No approved budget
existed, and marketing costs were out of control. Multiple individuals were
engaging suppliers without controls.
Many sales personnel were under quota with poor pipelines. Very different
sales compensation plans. One company was more adept at selling Services than
the other. Analysis showed Company could achieve coverage with 30% fewer
salespeople.
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| Paladin Actions & Recommendations |
Drove
top management agreement on key company message and "go-to-market" strategy.
Redefine role, objectives, workflow, processes, supplier management,
measurements and budgets for the marketing function, eliminating overlap and
waste. Downsize marketing over 50%, moving people to jobs for which they were
best suited, terminating those least suited. Extensive communications and
training for marketing and sales personnel was suggested.
Develop a single sales comp plan. Evaluate and stack rank sales personnel by
quota performance, pipelines, and Service sales skills, keeping the top 70%
and terminating the remainder. Substantial sales training on strategy, sales
processes, comp plans, customer relationships.
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| Client Results |
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Go-to-market message simplified and communicated, at great
reduction in cost.
Suppliers were reduced by 70% through price/performance competition |
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Improved marketing workflow with 60% fewer employees |
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Marketing management and sales operations consolidated
under one VP, minimizing conflicts. |
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Savings exceeded $4M. Sales integration and new account
assignments were accomplished in less than 30 days, with minimal customer
impact, and a 35% reduction in sales cost. |
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Simplification Ended Confusion
and Saved $4M |
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