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Restaurants & Hospitality

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MERU CASE STUDY

Revamp sales infrastructure, processes, and tools to drive profitable growth

COMPANY OVERVIEW

  • The client, a provider of employee recognition and reward programs, sales channel incentive programs, and customer loyalty programs had been experiencing significant losses due to poor contracting, product pricing, and a costly failed attempt at bringing a new product to market
  • Recent major headcount and cost reductions associated with the shuttering of the failed new product launch has made company marginally profitable
  • MERU was engaged to redesign their sales process to drive profitable growth, design a “fit for purpose” org structure, and stand up a “Revitalization Office” to support ongoing effort

OUR APPROACH

  • Evaluated profitability of existing clients, identifying which clients should be kept or terminated
  • Stood up a deal review committee to review upcoming renewals and new work to drive margin accretive pricing and contracting
  • Conducted client interviews and design sessions to  identify pain points and inefficiencies within current org structure
  • Assessed breakdowns and inefficiencies in existing sales process, product pricing, and contracting practices which were leading to long sales cycles and solutions being sold for less than cost
  • Stood up a “Revitalization Office” to drive sustainable change
Restaurants - Case Study #1

OUR IMPACT

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Delivered ~10% increase in overall EBITDA by re-negotiating eight client contracts representing ~25% of revenue (run-rate impact est. to be ~30-50% increase in EBITDA).

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Customer profitability analysis identified 18 number of negative / low margin accounts to be terminated.

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Established weekly deal review process and implemented standard business case review template for account teams. Achieved 50bps of pricing increases on reviewed accounts in the first 3 months and shifted the mindset of the account teams from “settle for less” to “negotiate for more”.