Dealer segmentation for GTM activations via targeted salesforce deployment

CLIENT

A leading automobile parts manufacturer

BUSINESS OBJECTIVE

  • Our client had over 5,000 dealers across key markets. The client wanted to achieve 20% increase in sales driven by the launch of a new product line
  • The client’s 200+ Dealer Representatives (DRs) struggled to achieve quarterly targets for new products as all dealers were not interested in stocking the new product suite
  • The client did not have a specific GTM for the newly launched product suite.

BENEFITS & OUTCOMES OF OUR ENGAGEMENT

  • Identified c.1,800 ‘High Potential’ dealers to drive 70% of the targeted sales from the new product line
  • Helped the client design discount structures and dealer schemes specifically for ‘High Potential’ dealers. The client achieved 15-25% savings in trade marketing budgeted cost as a % of turnover
  • Optimized sales force deployment to focus on select DRs who were assigned targets specific to the new products
  • Delivered 20%-25% manpower efficiency / effort reduction

SGA APPROACH

We recommended dealership segmentation in order to cluster dealers on the basis of the Dealer Potential Index. We adopted the followed 5-step approach:
  • Step 1 – Derived relevant parameters for dealership clustering using DR salesforce data. Parameters included calls/visit frequency, productive call rate, journey plan – distance between two calls per day, leave management system, salary, employment tenure, past history of target achievement, dealer to DR mapping, etc.
  • Step 2 – Derived parameters for dealership clustering using dealer’s transaction data. We assessed parameters including purchase history by-product lines, discounts, inventory stock-out period, propensity to adopt new launches in the past, average size of assortment carried, dealer feedback surveys, post-sale servicing records, locality profile of dealer’s outlet, popular vs. premium assortment ratio, etc.
  • Step 3 – Used K-means clustering to arrive at 6 clusters across dealerships which were differentiated based on % of sales via premium products, minimum discount slabs, locality profile, and number of DR visits per month (servicing frequency)
  • Step 4 – Determined Dealer Potential (Target) Sales Index based on scenarios across key sales influencing triggers at each dealer level – for each cluster. We built these scenarios in consultation with the client’s strategy and business leads
  • Step 5 – Determined the number of DRs and visits per DR based on dealer-wise sales targets. Our client used the results of this analysis for salesforce deployment and to design an incentive plan for the sales team