Background
In a highly competitive, resource-constrained industry, the U.S. division of a multinational manufacturing company (the Client) faced a significant challenge. With market share dominated by a few, large established players and limited new opportunities for growth, the Client recognized that traditional sales strategies wouldn’t yield the impact they needed. Playing the game of the market leaders could easily come down to who could spend the most money. Instead, they aimed to increase sales by expanding their share of product distribution among U.S. manufacturers that use their chemicals in secondary production.
Rather than relying on a large, generalized sales force, the Client’s approach was highly specialized. They employed a smaller, technically skilled team with deep industry knowledge and focused the team on building strong, consultative relationships. But with resources limited, their strategy needed precision targeting.
The Client turned to Loyalty Research Center (LRC) to determine if a Voice of Customer (VoC) program could pinpoint the most promising prospects within a mature market and help them efficiently allocate their sales resources.
Challenge
Despite strong customer loyalty among their existing clients, the Client wanted to expand their customer base and increase overall product sales.
The question was: How could we identify the high-potential prospects within a competitor-dominated market, while also aligning with their consultative sales model?
Loyalty Research Center Approach
LRC developed a research framework to help the Client strategically target their sales efforts by focusing on three essential criteria:
- Customer Dissatisfaction – Identifying prospects dissatisfied with their current suppliers.
- Compatibility with the Client’s Business Model – Assessing how well these prospects aligned with the Client’s technical, consultative approach.
- Potential Barriers – Determining if any concerns arose once the Client’s identity was revealed.
This VoC research was conducted through a blind study, surveying multiple contacts at each of the Client’s 300 prospective companies. The research achieved a 63% participation rate, providing comprehensive insight into prospects’ needs and preferences.
The research found that there were three segments of customers, one of which wanted a technical sales partnership. This was something the other firms did not pursue and gave The Client a competitive advantage.
LRC then used this data to score each prospect, identifying those with both high vulnerability (dissatisfaction) and those that are most attractive and fit with the Client’s unique business model. The analysis was then extrapolated to a high percentage of prospects that were not interviewed.
Results
Initially targeting 500,000 pounds of new product sales, the Client ultimately saw a remarkable 13 million pounds in additional sales within 14 months, demonstrating the program’s extraordinary success.
Key Insights
– Strategic Targeting Drives Efficiency – Using VoC insights, the Client precisely directed their sales efforts, reducing unproductive outreach and focusing on high-potential prospects.
– Customer Loyalty as a Growth Lever – Identifying competitors’ vulnerable customers enabled the Client to position themselves as a preferred supplier, effectively increasing market share in a saturated industry.
– Research-Driven Sales Strategy – LRC’s approach provided a data-backed sales strategy, allowing the Client to align with unmet customer expectations and convert these prospects into loyal clients.
Conclusion
This case demonstrates the powerful role of customer diligence in driving measurable growth, even within mature, limited markets. The Client’s success highlights how targeted, VoC-driven insights can be a game-changer in strategic sales allocation and customer acquisition.