A leading European retailer in the accessories/spare parts segment (automotive/motorcycle) and clothing was in a serious crisis. At the time of the interim mandate, the medium-sized company sold its products through 120 stores in Europe, via catalog and in an online store. Among other things, it was suffering from an investment and innovation backlog as well as outdated structures and an inefficient marketing mix. The first task was to stabilize the core business immediately. The interim manager was also tasked with identifying and implementing restructuring measures as a temporary managing director. This also included opening up digital marketing channels and networking all sales channels with one another.
Short-term marketing measures ensure operational reliability
After an in-depth analysis of sales and marketing activities, the interim manager initiated short-term measures to harvest low-hanging fruit. These measures included:
- Activation of existing customers through a new newsletter marketing concept (up/cross-selling)
- Activation of inactive ex-customers through welcome-back campaigns
- Introduction of a welcome kit for new customers
- Reactivation of the customer club with exclusive services and benefits
- Regular updating of the website with seasonal highlights, new products, etc.
- Freshup with on-board resources before the relaunch
- Special offers and seasonal promotions for available products from stock
- Adwords campaign in the run-up to the start of the season as the main sales period
These activities made a significant contribution to ensuring operational reliability in the short term.
Definition and implementation of a new long-term corporate strategy
The company had gone through two insolvency proceedings in the past. This had understandably taken its toll on the motivation of managers and employees. In order to involve the workforce in the upcoming change management and motivate them for the implementation, the interim manager identified employees who he closely involved as key players in the project teams in the development of optimization measures.
Together with the project teams, the interim manager worked out the company's strengths and weaknesses (SWOT), analysed the competition and defined the brand essence. The new corporate strategy was developed on this basis - and the processes for sales and marketing were aligned accordingly.
Comprehensive strategic realignment in the context of digitalization
The strategic realignment in the competitive environment was particularly focused on digitalization. This required far-reaching restructuring. This included:
- Introducing a consistent customer focus
- Restructuring Salesforce incl. sales management and remuneration model
- Closing around 30 branches
- ERP system change from Navision to Dynamics
- Relaunch of the online shop
- Development of new sales channels (including marketplaces, OEMs/tenders, etc.)
- Relaunch of the online shop
- New sales channels (including marketplaces, OEMs/tenders). Marketplaces, OEM/tendering)
- Networking all marketing activities and optimizing the marketing mix with a focus on digital instruments (SEM, email, affiliate, social)
- Activation of a customer database with > 500,000 address data (customer club).
Successful turnaround - future viability optimized
The interim managing director was able to correct many past failings within a short period of time without overburdening staff and the company. The changes generated new motivation and commitment among the employees. The new reporting system made performance and achievements more transparent and controllable. A stable IT landscape and lean processes make work easier for employees and provide additional motivation. The branch closures resulted in significant savings. In addition, the marketing budget is now used more efficiently. Savings were also realized by switching agencies. Online sales have more than tripled thanks to the activation of existing customers, new customers, increased conversion and an efficient shopping basket.
