Avalon Consulting helps automotive parts company realise sales uplift

22 February 2021 Consultancy.in 3 min. read

Avalon Consulting has helped a leading commercial vehicle aftermarket player revamp its sales infrastructure – leveraging the latest in tech and data analytics to deliver a 6% boost in sales from one quarter to the next, while also installing a sustainable growth framework. 

The commercial vehicle aftermarket is a supplement to the heavy and light truck industry – selling either replacement parts or accessories to enhance vehicle comfort and experience. The sector has seen rapid disruption from tech-powered players in recent years.

The client in question was losing market share as a result – held back by an outdated distribution network, dwindling sales, tech-savvy competition and poorly planned restructuring efforts. Cordence Worldwide partner Avalon Consulting was called in to steady the ship.

Avalon Consulting helps automotive parts company realise sales uplift

The goal was a return to growth, and the client sought a data-driven approach that would convince stakeholders; minimise disruption during implementation; and leave the company with a lasting growth model.

Avalon Consulting set about its task with a preliminary roundup of the client’s status quo. This includes data on sales, benchmarks and market size from internal and external sources; an overview of stakeholder management, communication, marketing support and product availability; and a categorisation of distributors by performance and significance.

A sample set of distributors was selected to trial the consulting firm’s revival plan, which was cleared with the entire stakeholder ecosystem. With the all-clear, the plan could move to implementation.

First on the agenda was to boost sales on the ground. Field agents were equipped with data-driven sales routes, and equipped with GPS that could generate more actionable data. A new incentive structure was also introduced as a performance boost.

Next was a focus on the dormant customers – mechanics and customers that were previously buying but were either inactive or undecided about products. The firm engaged in “knock-knock” communication to re-engage these customers, bolstering the process via automated text messages in local languages.

Last was to promote brand presence – managed through innovative contests to bring more mechanics on board and local community meets to build awareness on loyalty programmes.  These are some of the highlights from a comprehensive sales revamp.

Poised for growth

The outcome exceeded expectations. Sales grew by 6% quarter-on–quarter, compared to 1.5% the previous year. More than 350 dormant customers were re-engaged, while mechanic engagement jumped by 10%. And the number of distributors meeting or exceeding their sales targets quadrupled.

With clearing inventories, the company is now in a position to build back stronger. Enticed by the tremendous success, the client is also scaling up the new model across its entire distributor ecosystem. This is not Avalon’s firs success with the automotive sector: the firm has previously helped a commercial vehicle dealership in India with a 30% plus boost in revenues.