"We're Banking on the Future"
Polymer
Additives was the first business unit to complete the customer
segmentation project. Now it’s on to the implementation of a new
go-to-market model. Starting January 1, 2025, the PLA team wants to
better everage market opportunities with new objectives. BU Head Karsten
Job is excited about what awaits in the new year.
Mr. Job, how are things going in your business unit right now?
Karsten
Job: We’re all hard at work and looking forward to writing a new
chapter in our PLA sales story. Since I’ve been here, we’ve never
undergone a change process like this. It’s pretty exciting.
What exactly is changing?
We’ve
sorted all of our approximately 1,600 direct customers into categories
based on new criteria. This was initially carried out using a digital
tool. The sales team then double-checked the results. We categorized our
customers into four groups. The largest group, which includes roughly
1,100 customers, requires little sales resources but also has little
growth potential. Then we identified the customers who already have a
high market share but are hardly growing at all. We definitely want to
keep these customers, which is why we named this group Defend. The Focus
group is growing with the market, and we want to grow with it. The last
group is the Grow group. We see the greatest growth potential with this
group, even if – or specifically because – it doesn’t yet account for
as much of our revenue. With these four groups, we’re now looking to the
future and want to retain customers who will perhaps be the strongest
players in the market in the future. We should be done assigning all of
our customers to one of the four market segments by the end of the year,
at which point we can start implementing the changes.
How will this impact your sales representatives’ day-to-day work?
We
need to reposition ourselves based on this forward-looking approach –
customers with significant growth potential require more of our
attention. It used to be normal for a sales representative to be
responsible for up to 50 customers. We no longer consider this to be
effective. We will increasingly rely on digital channels and
distributors for our customers with low growth potential. This is how we
will reduce the amount of direct sales resources we allocate to this
group. However, the remaining 500 or so customers require such a high
level of attention, especially in the Grow group, that in the future
some sales reps will only be responsible for four to eight customers.
This will allow us to focus on the group in which we see the greatest
value.
Won’t the teams need training for such a major change?
Our
entire team is experienced and qualified. I have no doubt in my mind
that everyone on the team will get on board with our concept. We also
have clear guidelines for what we expect from each customer contact and
what our objectives are for them. We make distinctions here, too – does
the customer require personal visits or are they more interested in
communicating via digital channels? The employees who take care of the
“digital” customers are part of the Inside Sales team and, of course,
are responsible for a larger number of customers. Overall, we will be
emphasizing the service aspect in the future. When it comes to our
customers with growth potential, we will increase the availability of
our technical support and marketing employees as needed. We want to be
our customers’ partner and support them in their endeavors to the best
of our abilities.
How is your team responding to these drastic changes?
The
feedback has been extremely positive. We got everyone involved in this
process from the start. We will now be holding three large meetings with
the teams in the Americas, APAC, and EMEA regions by the end of the
year where will present and discuss our concepts. Incidentally, they can
also be implemented in the other BUs. To ensure that our concept is
implemented optimally, it is important that the teams use the customer
relationship management system. We are currently in the process of
developing new features for it. They will enable us to define our
objectives at the customer level based on the available data and then
implement them as efficiently as possible. This way, we will learn much
more about our customers and the market. As a result, this expanded
knowledge will not only help us, but also everyone in the other
departments or even other BUs with their projects.
Quote
Acquiring Customers
“The
new concept will once again position us as hunters that need to
actively acquire new customers. Customer segmentation offers us the
perfect balance between focusing on growth customers and optimizing the
use of our resources.“
Karsten Job, Head of the PLA BU. It is the pilot BU for this project.