Lost sales are one of the biggest challenges for a company, as they represent lost business opportunities and affect both profitability (revenue) and customer service level (image).
In a sector as competitive as the auto parts sector, every small improvement in sales efficiency translates into significant increases in revenue.
These are the main reasons why lost sales continually occur in the conversion funnels of auto parts companies and a brief comment on how we can minimize them:
Part number searched by the customer is not known. Spare parts databases are essential to expand our knowledge of existing part numbers in order to incorporate them into our databases.
No solution is found in our stock/range for part number searched. This is very frustrating because even though we have the solution, we are not able to find it! Creating and maintaining equivalencies is essential so that customers can always find the products.
Product requested by the customer is out of our stock/range. Product assortment planning and in particular, the incorporation of new SKUs with sales potential must be a constant in our daily management.
Out of stock. We must constantly adjust stock levels based on demand and sales.
Not competitive price. We must compare our prices with those of the competition. An unequivocal sign of non-competitive prices is when our sales are well below demand.
Of course, there are other reasons for lost sales that you should pay attention to, such as:
Poor quality of the product or of a quality different from the requested.
Poor customer service (high shipping costs, bad sales conditions, etc.).
At Factory Data we have developed NEO system solution, powered by AI, helps you reduce lost sales by making the most of market potential.
This applied sales intelligence is a valuable tool to optimize your sales funnel and minimize your lost sales. These are the elements that NEO system focuses on:
Optimal applied sales intelligence can easily result in +20% increases in service level, +5% in sales and a return on investment >x10.
You can find more information about how to increase your service level and sales at: www.factorydata.com
