4 Ways Manufacturing Companies Can Increase Sales
- Mark Edwards ·
- 0 Comments ·
- March 17, 2021
Many manufacturing businesses’ production capacities depend on how much they sell; that’s one proven principle of the supply and demand chain. Changes in marketing and sales strategies are happening across all industries, thanks to technological innovations and shifts in consumer demands. Therefore, embracing cutting-edge technologies is paramount more than ever before to manufacturers.
If you want to drive your sales and remain competitive in your industry, adopt the following manufacturing strategies.
Focus More on Your Existing Customer Landscape
Good customer retention is the key to driving sales and boosting your revenue. For example, one Harvard Business School report found out that a 5% increase in customer retention rate could increase sales up to a whopping 95%. Targeting your existing clients has a positive impact on your turnover because your current customers will return to buy more products than new clients. Since your manufacturing business may already have a well-established communication channel with consumers, it will cost you less to market new offers.
Go Digital With Everything
Many manufacturers don’t go for online cataloging, but filling this gap can prove beneficial in building your sales. Online cataloging is not just about putting specific catalogs online for consumers to download — the strategy is particularly helpful in getting customers to know who you are and what you have in your catalog. To enhance your sales, you will need to design a professional and interactive digital catalog. Manufacturing companies may want to develop comprehensive databases on all the products they offer. Making it easier for customers to search and filter results based on criteria can boost your sales by large proportions.
For example, digital manufacturing, together with AGV factory implementation, can transform the assembly lines of auto manufacturers. RedViking is one leading technology-driven company that has been solving critical production challenges for automakers and their suppliers.
Implement the Pareto Principle
In sales concepts, the Pareto Principle requires that 80% of your revenue should come from 20% of your consumers. If your manufacturing company wants to multiply its sales, the greatest impact will result from concentrating on the top 20% of your accounts. Invest your resources on these critical accounts by spending more time on-site creating dedicated services. Figure out the most promising accounts in the bottom 80% and invest more time nurturing those accounts. Your company will begin to ramp up its sales if you observe the above few tips.
Treat Your Sales Like Operations
Good manufacturing principles revolve around efficient operations. You can use detail-oriented processes throughout the entire organization to lower costs and keep things running smoothly. This is practical for many areas of your manufacturing firm’s operation, but it basically boils down to your sales team. While manufacturing tackles particular products, each sale is often unique, and individual customers partner with companies with different needs and sales processes. One sale may require just one or two tasks, while another may demand hundreds of tasks. Don’t force your sales teams to stick to one cumbersome document when they could prospect for new leads.
Find Better Suppliers to Work With
When you work with better suppliers, you have fewer issues with hold ups, delays and general problems. You should also find that the quality of your products will improve as you’re making them with the use of better materials and supplies. So whether you need commercial concrete supplies or a new supplier of molds or bearings; make sure you’re working with the best you can find and afford.