An industry leading provider of industrial process fluids, our client historically serviced a fragmented marketplace comprised of nearly 50% small-to-mid sized customers with diverse and complicated needs. They had historically experimented with different, focused models yet none moved the needle on either the growth or the efficiency of the business. Furthermore, our client learned that a large portion of its sales team’s time was spent on low impact customer needs, pulling vital resources away from its strategic customer base.
Xenon arc configured a solution aimed at the specific requirements of our client’s defined market, leveraging xa-Direct technology tools, technical resources and business processes to more effectively and efficiently reach the little “b” customer base.
As an extension of our client’s go to market strategy, Xenon arc deployed a team of 7 industry specialists to bring their products and services directly to smaller, niche customers, bypassing intermediaries. Products, services, branding and messaging were now all 100% aligned with our client’s marketing and service strategies. This alignment, in addition to the improved business intelligence and market insights, dramatically increased customer base by more than 3x in just 18 months.
In addition to the marketing and sales focus, Xenon Arc focused on improving business processes and demand planning visibility. These supply chain and operational efficiencies led to gains measured in the hundreds of thousands of dollars. Furthermore, our client achieved other gains including over 100% improvement in batch size optimization – which alone was more than enough to off-set the initial investment in year one. All told, the annual, recurring cost savings the xa-Direct model delivered to them has eclipsed two million dollars.
By bringing coherence to the channel, Xenon arc enabled our client to concentrate resources on its strategic market segments. Channel conflict with distributors over issues such as pricing, inventory and jurisdiction have been greatly reduced. And processes that needed to accommodate both large and small customers are being redirected to serve the market segments with the greatest impact – all possible because Xenon arc has the little ‘b” segment covered. Our client achieved out sized growth in what was an otherwise stagnant category, increased its focus on its core customers while achieving tangible cost savings.