Heavy Machine Manufacturer gets 10x Return
This is a case study in discovering revenue insights after gaining an understanding of how a particular client generates revenue.
Maintaining heavy machinery is critical for long lasting items that require a large capital outlay. These manufactures also supply the critical spare parts that need to be replaced annually. This provides recurring revenue and only now is getting the recognition it deserves.
Our client had a suspicion that they were realizing only a small part of their overall spare part maintenance opportunity.
The manufacturer suspected that their customers were buying critical high-margin spares and services from third-party suppliers that often did not provide quality service.
The manufacturer had plenty of data but was lacking insights on how to use it to drive growth and improve customer service.
Through our discovery and data review the problem was quantified and analytical work began. This led to organizing the data so that we could review 10 years of orders.
By then comparing actual spare part orders vs actual, significant gaps were identified.
While this was the use case with the highest potential return several others were generated by virtue of having the data structured and visualized in several dashboards. The dashboards were further improved for ease of use by the customer support team.
By quantifying the opportunity, a business case proved hiring a customer service agent to focus on increasing spare part revenue was valid.
To capture the revenue, outbound plays were developed. In addition, when customers called in, the rep could easily pull up order history and propose spare parts to keep the large capital machine up and running.
Other uses cases show customer with lumpy revenue and plays were put in place to keep them consistent. Next best product analysis identified cross-sell opportunities.
The Revenue Insight team in short order helped us make sense of all the customer buying history and was able show us via a custom dashboard which customers had stopped buying certain spares and service in ranking of highest to lowest revenue impact. We were able to target these customers and also uncover other opportunities for us. The early successes we achieved led to more insights on possible lost revenue opportunities which Revenue Insights also helped us to address. We achieved a 10X return on our investment in the first 12 months.”