Case Study

Value selling drives animal health company’s success, inside sales team increases sales by $2.23M with 2.7x ROI

Industries
CPG

Summary

This company was looking for a cost-effective solution to tap into the revenue stream of smaller accounts that weren’t serviced by field sales reps. HGS created an inside sales team and used value selling to generate additional sales for the client.

 

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Client background

The client is an American animal health and pharma company that produces medicines and vaccinations for pets and livestock. They believe in helping pets and food animals lead healthy, quality lives by developing new and innovative animal care products and practices.

Business challenge

The client had over 5000 pet health clinics and 4000 cattle product stores that were not actively being pursued by the field sales teams, due to the small size of the account ($3K sales) and/or their geographical location. Field reps were currently tasked with handling much bigger accounts and adding the smaller accounts would not make for good ROI, even though cumulatively, it would mean additional revenue for the client. The client was looking for a solution to tap into this revenue stream in a cost-efficient manner.

The solution

HGS created an inside sales team of FTEs, specifically looking for people with relevant experience in animal care and pet health.

Training

These teams were tasked to build long-term business relationships via phone and email with the pet health and cattle product stores. They were trained in “Value Selling”- asking the right questions to arrive at the root of the customers’ problems and providing the right products- rather than giving a laundry list of what was on offer. Brand training, thorough product portfolio knowledge, and best practices in sales helped in the transition from a customer servicing role to a sales-focused role.

Relationship building and focus on customer experiences helped in benefits such as rebates, discounts, promotions, and more.

Execution

In 2019, a team of 4 FTEs was set up to handle the cattle feed stores with each inside sales agent handling over 800 accounts. The same model was replicated in 2020 for pet health clinics with 10 FTEs handling over 500 accounts each. The team supports the client’s field sales team, handling direct sales for both portfolios.

The client is now reviewing what other accounts can be moved to the inside sales team in order to maximize the field teams’ time on more profitable accounts.

Results

This has saved time, effort, and money for the client in the following ways:

Pet health clinic:

  • $2.23M increase in sales in 2020 over previous year
  • $200k per month in additional sales within 3 months
  • 2.7x ROI through the inside sales team

Cattle product stores:

  • $1.4M in sales with a 4:1 ROI in 2019
  • $800k in sales per month in order support and account management
  • $48k in 2019 in special call projects not already present in incremental sales
  • 400 hours equalling 50 days of work saved for field sales teams
  • 89 insights-driven market pulse reports collected on products feedback

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