You’ve probably heard the expression, “Don’t put all your eggs in one basket.” But, in today’s complex, global business environment, that’s easier said than done. Parent companies, subsidiaries, branches, divisions, plants, shells – organizational hierarchies can be challenging to unravel. And if you don’t have good visibility into the corporate families with which you do business, your own company’s success could be at risk. Ask yourself these questions:
- Are Your Top Customers at Risk?
According to the Gartner Group, 80 percent of your future profits will come from just 20 percent of your existing customers. That’s why it is critical that you understand exactly what your customers’ corporate families looks like. Could the sale of a related subsidiary impact your current business relationship? Is the parent of the company you do business with in financial difficulties? As the saying goes, “Forewarned is forearmed.”
- Are You Talking to the Right People?
The buying process has become much more complex – and in some cases, self-directed by your customers and prospects. Are the right people being engaged at the right stage in the process? With more robust corporate families data, you can uncover the decision-makers across different departments to help your marketing and sales teams connect with every individual that can influence a sale.
- Do Personnel Changes Leave You Scrambling?
When your sales are built on relationships, what happens when an individual leaves your customer’s company? According to Bain & Company, the cost to acquire a new customer is nearly 7 times more than the cost to retain an existing one. Based on that statistic alone, investing in a research tool that offers relevant, reliable executive and corporate families data could save you a lot of headaches – and money – in the long run. Having greater visibility into the decision-makers at customer or prospect companies helps to ensure that when one person moves on, your sales don’t disappear.
- Are Your Suppliers Risky Business?
Even the best sales team won’t succeed if your company fails to deliver quality products on time. Using corporate families data to identify potential risks in your supply chain – like financial instability in a related company – can help you avoid issues that negatively impact your ability to fulfill orders. Ruby Newell-Legner, a customer service training expert, notes in Understanding Customers that it takes 12 positive experiences to make up for one unresolved negative experience. By the time you’ve missed a critical deadline, the damage is done.
Customer and supplier relationships can be fragile, and when they break down, your company is vulnerable. Having insights into the corporate families of the companies you do business with – like those available in Corporate Affiliations – can help your team better nurture and manage those relationships to drive success.
Source for statistics: 15 Statistics That Should Change The Business World – But Haven't on LinkedIn