The bottom line is that Citrus must turn accountable and measurable performance into a lasting competitive advantage over the long-term.
Analyzing Industry-Wide KPIs for PC Manufacturers
Areas of Measurement
Baseline: What is Measured
Industry Definition
Company-specific
Project costs and expenses
Use as a baseline for defining ROI
Number of orders per year
Determine configuration's impact on inventory turns
Current inventory and costs
Inventory turn savings
Customer Data
Lifetime cost per customer; avg. deal size by customer
Sales
Order cycle time
Order cycle times reduction of 35% or more recorded with mftrs contacted
Cost of Sales
Days Sales Outstanding reduction from 55 to 23 days on average
Cross-sell and up-sell revenue
Increase of 46% on aggregate
Average sales price per order
Increase from 7% to 29%
Quote and Order
Average costs to complete an order
91% reduction in cost per order
Special Pricing Requests
Over 92% ROI on automating Special Pricing Requests
Bad or incomplete orders
Incomplete order reductions of 30%
Customer Service
Number of customer complaints
89% reduction in cost of simple requests
Revenue lost to churn
69% when cross-selling is used with quote-to-order
Number of calls on order status
Median level of 15,000 per week to 200
Warranty and Returns
Reduction in warranty cost on customized products
14% reduction at a minimum
Labor cost reductions
Decrease order re-work from 18% to 1%
Distribution and Multi-Channel Management Strategy
As the O-Citrus laptop series is primarily sold to enterprise accounts, the primary sales channel will be a direct sales force who will call on CIOs and VPs of it, in addition being able to present to company boards of directors. While a direct sales force is expensive, this specific product and its unique attributes warrant the investment. Further, the unique value proposition of the O-Citrus laptop series centers on highly quantitative MTTF and MTTR calculations in addition to TCO measures, all of which must drive a positive ROI for customers. These are all essential aspects of selling into enterprise accounts and require training and an expertise with financial modeling in addition to in-depth knowledge of how systems work. Second, the direct sales force makes sense as a first phase of considering a reseller channel strategy to gain access into corporate accounts from relationships these resellers have.
Support and Services Strategies
As Citrus is primarily focused...
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