Commercial Excellence is a series of steps that an organization can take to define its target customers and plan the delivery of its value proposition to them, supported by excellent sales and marketing execution. This is essential for businesses that seek to establish a new go-to-market model to enter new categories or markets, and also for established businesses that aim to gain a competitive advantage and target incremental growth in mature, highly competitive categories.
L.E.K. works closely with management teams on Commercial Excellence initiatives to help reinvigorate revenue growth and optimize sales and marketing spend. In our experience, these initiatives can yield concrete financial benefits in terms of revenue growth and/or substantial SG&A savings through the optimization of resource allocation.
Companies face headwinds from intensifying competition in mature markets, weakness in emerging markets, global oversupply in commodity industries or other factors. With underwhelming market growth, pressure increases to find unique ways to build competitive advantage and drive market share gains. Customers nowadays demand far more customized solutions and services for their specific needs — offering both superior products and service is now a prerequisite for success. Demands for support and responsiveness from customers continue to increase, putting more pressure on commercial teams.
In addition, technology advancements, such as the Internet of Things and connected devices, mobility, cloud computing, and big data, are threatening to disrupt established market relationships, introduce new competitive dimensions and challenge existing business models. Within these changes, there is significant opportunity for businesses to transform their commercial models. Market leaders are evolving their organizations to support customer outcomes rather than product/service needs.
This transformation requires companies to redesign every function in their organizations — especially commercial functions charged with defining, selling and servicing value propositions. Sales and marketing teams need to redefine their relationships with customers by developing stronger partnerships to deliver solutions that generate the right customer outcomes. Other functions, such as product development, engineering and customer service, which tend to be siloed from sales and marketing, need to drive more cross-functional collaboration within their own organization to innovate on product and service, and deliver against the business’s value proposition.
How we help
Our Commercial Excellence framework takes a holistic approach to addressing these key challenges faced by companies. The framework ensures that a company’s go-to-market model is specifically configured to target the customers that represent the highest value for the business and to consistently deliver the company’s differentiated value proposition. Our Commercial Excellence initiatives entail working closely with management teams on three distinct topics:
- Customer targeting and value proposition: Ensures that a business is focused on the right customer segments and that the business’s offer to each segment is designed in line with customer needs and delivers the right economics to both customers and the provider.
- Go-to-market and commercial organization: Ensures that the business leverages the right sales channels (e.g., direct, inside sales, third-party intermediaries), and design and deployment of the optimal commercial organization, to serve the chosen customers and channels.
- Sales and marketing effectiveness: Ensures that the right sales and marketing processes and systems are in place to maximize the effectiveness of the sales and marketing activities.
Commercial Excellence: The L.E.K. Framework
We offer extensive specialist experience in commercial excellence combined with market-leading research and analytical capabilities to identify opportunities for improvement and define unique, practical solutions. Our work is focused on generating quick wins while helping our clients build strategic capabilities for the long term.
We work closely with our clients to define a solution that meets their specific objectives to build a commercial platform for strong future growth and/or optimize allocation of resources and drive cost-efficiency. We typically help our clients achieve a 5-10% revenue uplift with minimal investment from our Commercial Excellence projects, or, where appropriate, reduce selling costs by 15-30%.
Examples of our work
To learn more about how we help our clients, please refer to these case examples:
- Sales force effectiveness, margin improvement, and opportunity prioritization for a national electrical equipment distributor. Read more
- Mobilized and supported the delivery of a commercial transformation and growth strategy for a facilities solutions provider, successfully penetrating a number of new verticals. Read more
- Undertook the overhaul of a commercial organization for a leading U.S. packaging company, resulting in closer cross-functional coordination, higher customer satisfaction and revenue uplift. Read more
- Growth plan review and post-merger integration and optimization of commercial functions for a manufacturer of body armor and emergency services PPE. Read more
- Refined and helped deploy an updated go-to-market strategy and commercial team approach for a foodservice parts manufacturer, resulting in immediate productivity gains from the sales team. Read more
- Sales force transformation, including process and organizational redesign, for a global BPO services provider, resulting in significant commercial productivity gains and major new customer acquisitions. Read more
- Growth strategy development, commercial organization redesign and activation program mobilization for a global manufacturer of ophthalmological surgery equipment and systems. Read more
- Commercial cost-to-serve and organizational efficiency capability enhancement for a global technology conglomerate’s EMEA operations. Read more
- Commercial performance diagnostic and improvement plan development for a leading Asian animal feed producer. Read more
- Developed sales force effectiveness and new product launch program for a leading European drug manufacturer. Read more
- Go-to-market strategy development, channel partner strategy optimization and commercial function processes and organization redesign for a leading office furniture manufacturer. Read more
- Sales force and marketing effectiveness commercial model design and rollout for a global roofing solutions provider. Read more
- Growth strategy for a building products manufacturer seeking to understand the potential for a disruptive channel strategy in North America. Read more