The document outlines a sales analysis for a company, indicating a decline in revenues of 3.8% from 2011 to 2012 and 17.9% from 2012 to 2013, with significant losses in major accounts over these years. It highlights the failure to attract new customers, retention issues, and a 38.46% decrease in average revenue from new major accounts, emphasizing the need for immediate strategic changes. Recommendations for improvement include assessing customer relationship management and incentivizing driver performance to enhance sales engagement.

1. SALES ANALYSIS
AND
RECOMMENDATIONS
By
Judd Humpherys
See Spread Sheet for Detail Data Analysis

2. ASSUMPTIONS #1
For this analysis
A major customer is defined as any
company that generates $30,000 or
more per year in annual revenue.

3. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
TRENDS #1

4. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
The company is losing revenue
3.8% between 2011 and 2012
17.9% between 2012 and 2013

5. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
TRENDS #2

6. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
The company is losing major
accounts to competition:
Accounts lost in 2011 – 7 (lost revenues - $1,487,482)
Accounts lost in 2012 – 12 (lost revenues - $1,743,720)
Accounts lost in 2013 – 1 (lost revenues - $65,243)

7. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
TRENDS #3

8. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
The average annual revenue from
new major accounts decreased:
From $34,304 to $21,110 over a 4 year period.
That is a decrease of 38.46%.

9. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
TRENDS #4

10. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
The purchase of 75% of the top 109
customers has decrease
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

11. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
TRENDS #5

12. BOTTOM LINE Sales Trends
Bottom Line SALES TRENDS
The company’s ability to acquire
major accounts has decreased:
Major accounts acquired in 2010 – 14
Major accounts acquired in 2011 – 14
Major accounts acquired in 2012 – 3
Major accounts acquired in 2013 – 0

13. We FIX THIS Trend Immediately
WE MUSTMust Fix This TRENDS IMMEDIATELY
Average Annualized Revenue Contribution
Per Newly Acquired Customer
$40,000
$35,000
$34,304
$35,212
$33,768
$30,000
Major Customer Threshold
$25,000
$21,110
$20,000
$15,832
No New Major Customer
in 2013
Average…
$15,000
$10,000
$5,000
$2010
New Major
Customers
14
2011
2012
14
2
2013 YTD 2013 Run
Rate
0 major customers recruited

14. We Must Reverse These Trend Now
WE MUST REVERSE THIS TREND NOW
Customers lost
18
16
14
12
10
8
6
4
2
0
17
13
Customers lost
0
2010
1
2011
2012
2013

15. We Must Reverse These Trend Now
WE MUST REVERSE THIS TREND NOW
Customers added
23
25
20
15
Customers added
10
5
5
2
0
0
2010
2011
2012
2013

16. We Must Reverse These Trend Now
WE MUST REVERSE THIS TREND NOW
25
23
20
17
15
13
Customers lost
10
Customers added
5
0
5
0
2010
2
1
2011
2012
2013
The trends show the business is loosing customers, not able to
attract new customers, and not able to retain existing customers.

17. SALES TREND YEAR ONYear Basis
YEAR BASIS
Sales Trend Year on
20.00%
15.00%
17.12%
10.00%
5.00%
0.00%
-5.00%
Sales trend Y-oY
2011
2012
-3.81%
2013(P)
-10.00%
-15.00%
-20.00%
-17.91%

18. TRENDS – TOP 20 CUSTOMER (70% OF SALES)
Trends - Top 20 Customers (70% of sales)
7000000.00
National Freight Growth
Rate is approximately
4.6%
6000000.00
5000000.00
Sales Trending Down
4000000.00
Total Sales
Sale from top 20 Customers
3000000.00
2000000.00
1000000.00
0.00
2010
2011
2012
2013(P)

19. GENERAL OBSERVATIONS #1
5 Customers
contribute 39%
of sales
20 Customers
contribute 75%
of sales
31 Customers
contribute 80%
of sales
52 Customers
contribute 90%
of sales
76 Customers
contribute 95%
of sales
109 Customers
contribute 98%
of sales
317 Customers
make up 100%
of sales

20. GENERAL OBSERVATIONS #2
Lost 9 customers who
were among the top 20
Lost 5% of sales due to
2 of those 9 customers
Lost 22% of sales due
to 4 of those 9
customers
Lost 10% of sales due
to 3 of those 9
customers
Total lost sales from
those 9 customers was
37%
Only added 3 new
customers between
2010-2013
whose contribution
was among the top 20

21. GENERAL OBSERVATIONS #3
The Sales increased
due to new customers
was mere 4% out of top
20 in 2013
Lost major contributors
during last 4 years and
unable to replace them
with new customers.
About 20% of
customers reduced
their purchase by 75%
on average by 2013
28% of the top 109
customers stopped
purchasing from
company
14 customers who
contributed 25% of
sales ($1.42 million) are
no longer with
company in 2013.

22. SOME QUESTION TO ASK
Is the company building relationships with freight brokers & agents?
Is the company using load boards, like DAT and Internet Truck Stops?
Is the company incentivizing its drivers to find business?
Does the company have a customer retention program in place?
Is the company targeting specific major accounts?
Has the company identified any major accounts to target?
Does the company have a CRM program in place to build and track sales calls
and relationships?

23. CALL TO ACTION
I never identify a problem without
recommending solutions and
suggesting the ones I think
WOULD WORK THE BEST.
Call me if you would like to discuss
my thoughts on potential solutions
to these sales issues
(801-360-1628)