Every Product Category Is a Competitive Battle Front
In B2B, it can often seem like you are in a constant battle for greater customer wallet share. And more often than not, you are. Your competitors are attacking your business on multiple fronts, every day, trying to win business in any product category they can. You know this is true, because it’s exactly what you’re doing, right?
Losing Category Share Is Costly and Risky
Losing wallet share in any product category is concerning from two perspectives. First, there are the revenues you lost in the short-term. While these losses may not be all that significant in the grand scheme, they do add up and can make hitting your numbers just that much harder. Second, these short-term losses may be the beginning as the competitor gains a foothold from which they can go after your business in other categories.
Simple Revenue Metrics Are Very Misleading
Attempting to understand where they might be losing, most companies and salespeople just look at whether sales are going up or down in the categories the customer is buying. While it’s certainly better than nothing, this basic metric really tells you very little.
For example, if the customer’s category spend goes down, does that mean you’re losing wallet share in that category? Not necessarily. The drop in sales may be due to a normal fluctuation in the customer’s buying cycle, or a changing demand dynamic in the markets they serve.
And what if the customer’s category spend is going up? Does that mean you’re gaining wallet share? Not at all. In fact, you might actually be losing share even as your sales are growing! How can that be? Let’s say your sales have gone up by 10%, but the customer’s overall spend in that category has doubled. Somebody’s getting the bulk of that growth, it’s just not you.
SalesMax Helps You Recover Lost Wallet Share
Zilliant SalesMax automatically analyzes each customer’s spending patterns across every product category in your business. Through proprietary Buy Cycle Normalization and Purchase Pattern Profiling, SalesMax identifies customer-specific opportunities to recover lost wallet share. With a degree of scientific accuracy and rigor that cannot be matched by simple revenue metrics, SalesMax shows you exactly where you’re really losing, so you can take corrective action and turn those losses into wins.