BUILDING MATERIALS CASE STUDY
Reversing attrition for a major building materials supplier
At A Glance
Building materials distributor
Repair/remodeling contractors and smaller regional home builders
Our client, a building materials supplier, was facing a -34% year-over-year sales decline among remodelers. Historically, the majority of their business had come from single-family homebuilders. Since most of their sales were in lumber, there was a perception among contractors that they were strictly a lumber yard.
Since remodeling sales are less volatile during economic downturns, the client wanted to promote their higher-margin, value-added products and services (such as windows, doors, siding, and decking) to more repair/remodeling contractors. They challenged us with diversifying their purchaser mix and getting their attrition back to zero.
To do this, we implemented our 80/20 Program to help our client reach more remodelers and smaller regional home builders. The program involved targeting their declining, smaller accounts who were purchasing at big-box and regional competitors.
First, we cleaned-up and enhanced the prospect database by validating the contacts and appending with additional data as needed. Then our analytics team built attrition, up-sell/cross-sell, and channel preference models that allowed our communications to be highly targeted and effective.
Using these models, we targeted prospects with multiple messages per month through direct mail, email, digital ads, a microsite, and phone. The messages highlighted the client’s large selection of top-brand windows, doors, siding, and decking as well as their special services for contractors. Our phone reps also uncovered quote opportunities and escalated them to the field for follow-up.
MMC’s 80/20 Program not only reversed the client’s attrition back to zero, it also increased its sales by an astounding 30% and delivered a 6:1 return on investment.
Return on investment
Average yearly sales growth
Total cumulative sales
Do you need help reversing attrition in a
See what MMC can do for you by calling Stephanie Andacht at 800-345-4662 for a free consultation.