Happier customers due to timely recommendations.
Customer churn reductions of about 2,8 Mio Euro.
A 1,5 Mio. Euros additional business in 2020.
Problem
How do you keep up with your competitors’ e-commerce strategy in B2B if you are working on a saturated market?
The company is a family-owned multinational corporation in the mechanical engineering sector with worldwide operations. It encompasses several industrial divisions, including one dedicated to IT services & solutions. Investments in omnichannel sales, to improve customer lifetime value and centricity are a top priority.
The business was founded more than a century ago and offers today more than 300 components and services, including around 20,000 spare parts. It provides for more than 1,500 customers with a yearly turnover of about 100 Mio Euros.
The customer was looking for a reliable partner to support the success of its online marketing strategies with methods, solutions, and experience in B2B predictive analytics.
While most of the machines sold are project- and tender-driven, spare parts and services are not. They are critical components to price correctly for profitability and to cross-sell.
Spare parts depend on the engagement of their classic salesforce, supported by a team of CRM analysts. Most sales reps work with commitment and, yet passively, waiting for Key Accounts to open new tenders or for distributors to place new orders. The salesforce usually negotiated prices individually using a price list and customer agreeability. The company did not measure customer churn. It utilises an SAP ERP system.
According to the CRM analysts, spare parts and related services had an appealing cross-selling potential (in the company’s webshop and traditional sales channels). However, to improve profitability and the efficiency of the sales team, this market leader knew that they needed to automatise product and services recommendations using artificial intelligence.
Solution
Compared to big players and building a solution in house, Qymatix Solutions GmbH offered an excellent mix of predictive analytics models, value for money and flexibility. And it is ready to use in a few weeks.
The company implemented the Qymatix Predictive Sales Software in four phases during several months, using internal historical sales data. It chose the Qymatix solution over similar offerings for the competence of our experts and the scope of our software.
First, the customer organised a discovery workshop together with our experts, to gain a shared understanding of that is possible with predictive analytics in CRM and across e-commerce.
Second, the business implemented a proof-of-concept using the entire scope of the Qymatix tool to assess the monetary benefits of solving several predictive challenges together. This step included the necessary analyses, modelling, and data collection services to provide key users with forecasts and real-time product recommendations.
The technical implementation services included in this pilot project were helpful for the third project phase, where the customer expanded the input data used for the modelling and the technical infrastructure.
Results
The executive leadership gained a common understanding or the potential of predictive sales for their company and how to use it to make their sales truly data-driven and customer-centric.
Even with IT budgets frozen due to the 2020 pandemic, the company managed to execute on its business development strategy using artificial intelligence.
An additional number of satisfied key accounts decided to source its spare parts from the customer thanks to improvements on the timing of products suggestions.
Together with the Qymatix experts and the Qymatix Predictive Sales software, the company defined a 17 % customer churn. Thanks to ongoing customer retention measures, the customer is now on track to keep an additional seven-figures business a year.
The company estimates that thanks to the Qymatix Software, the classic salesforce is gaining a competitive edge in a saturated market, amounting to a 1,5 Mio. Euros in additional business.
“Regardless of your company size, Qymatix is the best complement for your CRM system. Its predictive sales analytics tool helps sales leaders to focus on the projects with the best chances.”
Armin Harbrecht – aramido GmbH
“Qymatix Predictive Sales Software makes customer attrition risks and untapped sales opportunities over hundreds of customers and thousands of products easily accessible.”
Hermann Waselberger – AET Entwässerungstechnik GmbH
“Qymatix helps growing medium enterprises to find undetected business opportunities with existing customers. With thousand active ones in our portfolio, Qymatix Predictive Sales Analytics is exactly what we need.”
Daniel Schuster – Welotec GmbH
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