Case:
Stagnation in sales: Setting a new commercial strategy & direction for leading Danish Telco
When YoY sales dropped 20% and churn rates rose +25%, the Telco appointed CoreConsult to analyze root causes and develop a new commercial strategy, including growth levers and prioritisation.
Challenge: Decline in sales - rise in churn
After years of successful market penetration and growth, sales started to slow, more customers churned, and internal misalignment on causes and direction was rising.
As the client put it:
“Implementation of the ‘industry model’ has gone too far, resulting in a lack of ownership in the value chain. We need to review our approach.”
There was an overall need to review the commercial strategy to close the gap, align on goals, and deliver upon the promised growth rates.
Solution: Analyzing root causes to find new ways forward
To find the roots of the problems, we analyzed:
- Overall YoY business and sales performance, conversion rates, cancellation rates, etc., for every customer segment – and main cancellation reasons
- Competitor performance and offerings
- Challenges within the technological offerings
- Gaps in the customer journey and satisfaction levels on a broad number of parameters
Selling through several partners was challenging the customer journey. Costumers were confused, and too many sales channels were involved. Sales channels were not aligned or followed-up upon.
Furthermore, we analyzed whether the Telco should take more end-user responsibility, how the pricing strategy could create growth while maintaining long-term value creation, and whether a standardized Go-to-market approach or a locally customized approach would work best.
Results: 13 growth levers and a change journey roadmap
Divided into strategic and commercial beliefs, strategic customer segments, and targeted geographical go-to-market approaches, we delivered a full commercial review and roadmap to turn the situation around.
The essential pain points to be solved were outlined for the management team alongside a prioritized list of high-level actions and quick-wins across the entire value chain to regain control of sales and secure long-term value creation.
The change journey in terms of As-is –> To-be was outlined in terms of:
- Market position and differentiation from competitors
- Go-to-market model and investments needed
- Customer journey and new offerings
- Sales culture and incentive models
- Mindset and ownership throughout the process
The strategy review not only helped the management to set a new direction. It also created internal alignment and enthusiasm to turn things around.
Furthermore, the owners and important stakeholders were reassured that the commercial strategy was based on a solid analytical foundation and had the right short and long-term goals.
