Full Report:
How we 10x-ed
the Sales of a
European high-quality
industrial equipment manufacturer
in Southeast Asia
within 12 months!
For more than 15 years, I have helped multinationals drive up sales in Asia.
What I have noticed throughout these years, boosting sales for more than 300 European companies in various industries and having talked to 1000s more, is this:
Almost every company thinks…
- their product is special and of particularly high quality, which justifies the price,
- yet the price is too high for Asia as the customers in the region are only looking for “cheap” products,
- ever-growing regional (especially Chinese) competition is flooding the markets with such cheap products, and they cannot compete.
The perception was also the same in this particular case.
What I have also learned during that time and through all these encounters is that most sales teams do not have…
- determined targets (most just try their luck and see what comes up),
- a strategic plan to accomplish them,
- defined (and culturally adapted) processes to find, nurture, convert, and retain customers,
- metrics and reporting that brings out detailed numbers of each process step to enable good judgment and attention at the right points,
- continuous self-learning and improvement methods.
So, to explain what I mean, let me just walk you through what we did:
The starting point was that the particular company at hand tried hard (according to them: everything!) for more than 5 years to build sales with the ambition of achieving several million Euros of annual revenue in that particular region by then. Yet, the results were a disappointingly low 6-figures.
At the time I got involved, the company counted 9 customers, 4 of which were outlets from European manufacturers themselves, 3 of their suppliers (all of them in some way forced to buy through HQ or customer instructions), and 2 new ones from exhibitions at the beginning stages.
So here is what we did to multiply that revenue by 10 times within the short time frame of less than one year:
Initial System Check
In order for both of us (me and the client) to not just feel or guess but to KNOW where we were at, we needed to look under the hood of the current sales methods the way they were applied before we change anything.
We opted for the basic APAC Core Sales System Check, the entry door with which I usually start an engagement with a new client.
EXPLANATION
Over the years, I have developed a sharp eye and ear, and a certain sensitivity about possibilities and limitations, especially of foreign entities in the region when it comes to building sales.
When things do not go as planned (or hoped), it is quickly blamed on two things, depending on the direction from which you are looking at it:
- The price or the market (usually from the sales teams)
- The people (usually from overseas management)
I have learned early on in my career to question platitudes and feelings, especially when it comes to sales.
Over time and with growing experience, a very refined catalog of more than 1500 broader and deeper questions has evolved that allows me to x-ray any sales system.
These questions I use in interviews build the foundation of my two entry evaluations, which I go through with every new customer.
APAC Core Sales System Check
The Core Sales System Check delivers a detailed report with my personal recommendations derived from an interview of about one to two hours with usually the team manager, which brings out the bottlenecks and shortcomings of the current sales approach.
We go through all of the 7 domains that make a professional sales system (Marketing, Lead Generation, Lead Conversion, Fulfillment, Customer Retention, Management, and Leadership - in my case, all tailored towards the unique requirements in Asia).
The Core System Check typically generates some surprising (occasionally shocking!) Aha-moments for the manager.
And, yes, in case you ask, I am charging for it. An amount that is actually quite irrelevant, and any company can pay out of their petty cash. Putting it through the internal payment process, however, is for many businesses already more commitment than the amount itself. And commitment is the key to success! (I have learned throughout my career that whatever is free is perceived as low or no value, or optional. Yet, this is far from it. So, I am not a great friend of "free", as you may guess.)
Investment: $
360° APAC Sales System Assessment
The 360° Sales System Assessment is basically the same process but with a much broader reach, more detailed analysis and report, and therefore a much deeper understanding of the current situation.
A series of interviews that can spread over several days and involves various stakeholders: the management, but also a superior (often the CSO or CEO), several salespeople, maybe other related personnel like HR, Finance, or Product Management, and occasionally even personnel from customers (if applicable).
An assessment I typically use for larger or more complex organizations.
Investment: $$ - $$$
During this particular system check, we identified certain areas of severe weaknesses. (By the way, I have, until now, NEVER found a result of a Sales System Check that was all gold stars and had absolutely no room for improvement. Not even with the best and highest performers.)
In my report, I recommended certain steps for quick and sustainable performance gains, starting at the lowest.
The company then decided that I would be the right person to guide and accompany the regional sales director in implementing these sales system improvements, and so I was hired on this particular coaching assignment.
1) Sales Management
Since the company was purely built on technology, sales personnel, including top management, lived by the maxim "Quality sells itself." Accordingly was a lack of attention to developing, systemizing, measuring, and continuously improving sales processes.
The situation could easily be summed up as: “You’re good. We hire you. Here is a bunch of catalogs. Go out and sell!”
Then, every quarter and, in an even larger event yearly, management looks at numbers - sales, cost, profits - and either celebrates or mourns the accomplishments.
Management provided a rudimentary (Excel files) CRM and required sales representatives to fill it with their performance data, which they reluctantly and half-heartedly did. The “system” was rarely ever looked at and barely influenced any decisions, which so far were based mainly on the manager’s feelings, which he derived from remote training from overseas headquarters.
I call that "sales management by feeling," which is an ineffective approach in any circumstance, even more so in a foreign cultural environment.
So, we started off with a few sessions entirely about sales management in order to build the right foundation for what is to come later on.
- We stopped looking at sales as one unit and divided the different disciplines into individual entities (lead generation, conversion, fulfillment, retention, ...) that built on each other but needed separate attention in order to deliver measurable and manageable results.
- We strategically defined processes (or updated existing ones) to better suit the needs of each discipline.
- We created proper metrics for each step and a semi-automated reporting system, still using the Excels, but significantly improved with much more details and automation. (Having led a Business Process Outsourcing company in the past, I know that it is very important to bring processes into people's consciousness before installing a professional CRM.)
- Then, we assigned people to each process in a defined accountability structure that was clear and visible to everyone.
It took us altogether 5-6 months to accomplish. But, of course, that was just the foundation.
2) Lead Generation
Meanwhile, the business had practically no systemized lead generation (a very common issue). Their current leads came from existing overseas customers (because they had to) and the two others as a result of exhibiting in 5 regional trade shows.
Participating in trade shows was meant to be the big factor in acquiring new customers, and a lot of effort was put into it - mostly on acquiring the best booth location, stylish product display, and the design of hand-out materials in return for business cards, that is. Of course, existing customers were routinely informed and invited two weeks before the show. (5 shows happily spent, two new customers acquired.)
They were members and quite active networkers in local business networking groups where leaders of mainly foreign companies connected - with fun but no noticeable business-related effect.
Apart from the regular social media posting that led to almost no engagement, they started running a few paid ads (out of desperation, they got persuaded by a local agent) on Facebook, LinkedIn, and a few minor physical publications. Creatives were a product image with a Logo, a slogan, a European country flag (as “proof” for high quality), and a phone number to call if needed (apparently nobody needed).
The company's lead list had 36 names on it (market potential was certainly in the 1000s).
Here is how we upgraded:
- We identified basic metrics for the lead generation process alone and generated a proper reporting system around it.
- We assigned a person to scan the internet (in the national language) and continuously grow a list of potential prospects.
- We identified a common problem most target customers had and designed a piece of free advice around it with a hook to attract a response.
- We created three different lead generation channels, measured them separately, and implemented the free problem-solving piece.
- We started a direct outreach to leads generated on the list in a defined and systemized manner.
- We designed a powerful process for lead generation at exhibitions and trade shows, which already started months before the actual event (and which, of course, went far beyond the usual “We cordially invite you to visit us at…”).
- We continued advertising (because there was a budget already assigned to it, and the fear was that it would be reassigned for other purposes outside of the team’s reach if not utilized). But we changed what was advertised (the free piece rather than a phone number that nobody ever called - no product image) and how we looked at and measured success.
Especially the last point was subject to some discussions at first. ("Why spend money on advertising something free?") Voices stopped when the results came in.
Within 4 weeks, we had 262 targets on the list (+727% in the first month!), and we had reached out to each one of them, eventually leading to 12 requests for quotes or further information. (There were 0 such requests from NEW potential customers for at least the previous twelve months.)
3) Lead Conversion (Closing the Sale)
As is also so often, sales meetings were based on making pre-crafted presentations to anyone who would have the patience to listen (even only out of politeness).
After each such presentation, an offer was offered to be sent in the usual hope-and-pray fashion, followed by a "Could you already look at ..."-routine every 14 days until forgotten.
We adjusted the process to ask a number of essential qualification questions before any presentation was considered to make sure there was an actual need to be met and that the effort was not wasted for either party. In addition to providing the company with information about their customers, this also had the effect that customers felt special and cared for, which, in return, helped significantly with building trust and eventually closing the sale.
The entire process was systemized, and specific personnel, including the manager at a later stage, were assigned to carry out specific tasks in the process. Particularly in Asia Pacific, hierarchies are important, and the right authorities are to be brought into the game with the right function at the right time.
Aside from the mentioned major improvements, we made several other adjustments to the system:
- Although the marketing material was good and informative, it had no points included that would motivate customers to take action of any sort. With some minor modifications, a range of invitations were added.
- We also introduced certain scarcity and urgency aspects into the entire sales system and reviewed and upgraded the guarantees.
- A process was generated to call a customer a few days after delivery to show care, get further information, and extend certain promotions for add-on items and services. A feature that turned out to be extremely valuable but was until then in nobody's mind.
- A continuous customer nurturing program (so far a lengthy -and costly - monthly newsletter that nobody read and random social media posts that nobody ever saw), was upgraded into an integrated system that motivated people to interact with it.
All these steps are not necessarily taken sequentially. They interact with each other in development and eventually in operation. For example, a free piece of advice in the lead generation process hugely influences sales conversion because, at that later stage, people built already trust before even having had a chance to buy anything. And trust sells!
Every aspect was attended to separately but designed to seamlessly build on and interact with each other.
As a result, the orders went from a fragile EUR 200k to exceeding EUR 2.2M within the first 12 months. (By the way: All the numbers in this report might not be directly applicable to your business.)
From a stagnating (and continuously fluctuating) workforce, 5 more people were needed to cope with the growing demand.
In terms of HQ's attention, the team went from being a distant and barely recognized trial outpost to a celebrated asset that was suddenly offered any support on a platter.
Naturally, also I am very pleased with the outcome, and I have several other success stories working in different industries, which I plan to post another day.
While living and building businesses for more than 27 years in Asia, I have been (and am still now) experiencing firsthand the rapid economic and societal development in the region.
To this day I find myself ever so often in conversations with European top decision-makers of very large multinationals who are still shockingly oblivious to the fast pace at which innovation happens and wealth is created in this part of the world.
I know for a fact that they haven't even sensed the tip of the iceberg yet that is about to come rapidly closer to their home markets. Not putting - right now(!) - everything into playing a role in this development is, in my humble opinion, extremely negligent.
As a European myself, I am very passionate about helping particularly those committed high-quality manufacturers and service providers to succeed and make a significant impact in this region.
This report is not published. You read it upon invitation or referral because I (or someone in your network) think(s) you might benefit from it in one way or another.
I hope, it provided great value for your time. Naturally, I appreciate any feedback.
Keep in touch!
Best, Thomas
Thomas Zagler? Who's That?
26+ Years Business Development in APAC
Thomas Zagler? Who's That?
