The illustration above could be me in my role as a Sales Director or Account Manager if someone just told me if I lost 25% market share in my account. Let me tell you what inspired me to write this article.
A few weeks ago, we had an interesting client on site. She came to our office to talk about her engagement with Vendemore as large Nordic based financial services client.
One line of business for this client is to offer pension products to employers and employees. This is typically a competitive market where market share is important. Even small percentage points increase in market share can equal to hundreds of millions of kronor in managed capital. Consequently, this means higher fees and margin for our clients.
Her presentation to us reminded me of the success we've had in what I would call a B2B2C world. The characteristics of this include:
- Providers are selling solutions to a business who typically pay for the service, but often the beneficiary is someone else like an employee.
- Examples of this could be company cars e.g. fleet sales, health insurance, pension schemes or other employee benefits.
- The providers typically have two clear issues:
- The framework agreement with the business is seldom exclusive, so you need to compete for your share of the wallet.
- Often, the providers are limited from marketing directly to the employees. The automotive industry uses the term "user-chooser" in fleet sales, hence my use of this. These brands rely on their B2C marketing efforts to create a halo and drip-down effect to these lines of business.
We've had tremendous success in this space: from simple campaigns to draw high-net-worth employees to branch offices, or working closely with a big automotive brand to advertise to their customers when cars are about to be swapped out at the end of a current lease.
Our visitor shared unnamed customer cases that proved how impactful this could be:Use case 1
: two financial service providers were listed to offer an organization of 2,000 employees an annual special pension contribution including a gross salary sacrifice option. Normally in this case, employees would pick about 50% of each with a margin of error of 2-3%. By using Vendemore's ABA during selection window, they grabbed 75% of the business which was almost unheard off.Use case 2
: another large pension customer would normally list three vendors for employees to pick from each year. Each would get roughly 1/3 of the allocated capital each. In this case, our client grabbed 40% which equated to an incremental 30 MSEK under management.
The disturbing part of her story was the complete ignorance from the sales teams. They obviously believed whole-heartedly that this was all down to their work in the account.
I, on the other hand, can tell you what my reaction would be as a Sales Director on the losing end of this. I would certainly do everything I could to find out how I lost so much market share, and replicate those efforts. If you want to know more, feel free to reach out to me directly or to our team: firstname.lastname@example.orgHans Bunes
Global Account Director, Vendemore