Many chemicals and materials companies are struggling with the impacts of increasing commoditisation. This process is largely driven by the ease of replication in production technology and a build-up of capacity, particularly in emerging markets.
The results are painful. Customers are asking for more (just look at the length of your latest RFP) and bargaining hard on price because they know there are more suppliers competing for their business.
Our clients are fighting back with innovative strategies to grow profitability and differentiate themselves from their competitors. These strategies include increasing the proportion of sales from specialist high-margin products, bundling value added services, and investing in joint ventures to explore potentially uncontested market opportunities. Irrespective of the strategy, there is a universal requirement – sales organisations need to adapt and change.
They need to demonstrate advanced consultative selling techniques to move conversations away from price and volume, and to focus them on the new sources of value they are delivering. We are helping them to do this, delivering our proven, researched consultative sales methodologies to transform the skill levels of their sales organisations.
A leading food chemical manufacturer was facing the challenge of their customers’ procurement teams using platform technologies to commoditise the bulk buying of chemical additives. By working with Imparta to engage earlier with customers to communicate the value of their differentiation, they were able to transform their win rate on RFPs from around 40% to 70% with net gains in both margin and volumes.
See our chemicals white paper Sales Excellence: Customer-centric Selling in the Emerging World of Chemicals 4.0.