Lexmark - Printing Industry
Lexmark is a top-five global printer company, known for its innovative printing solutions and commitment to quality. The company has achieved significant milestones in the printing industry, solidifying its reputation as a leader.
Lexmark sought to determine the viability of retaining its internal commercial sales team amid concerns about profitability.
The company faced high turnover within the commercial sales team, leading to lost sales and substantial training and upscaling expenses. Additionally, onboarding small clients incurred high costs, and these clients significantly taxed customer service resources.
Lexmark aimed to conduct a comprehensive analysis of all internal and external costs associated with commercial clients. This would enable the company to decide whether to transition to a third-party distribution channel or retain the internal sales team.
Previously, Lexmark only considered the direct costs of the commercial sales team, overlooking indirect costs such as additional professional services, customer service, training and education, HR, finance, marketing, and IT.
Idea House Collective began by identifying all relevant costs and business partners necessary for a thorough analysis. We then collaborated with Lexmark’s accounting department to understand how costs were being captured within their systems.
We offered consultancy services and system build-out to enable Lexmark to capture and analyze the required financial data.
Our team worked closely with Lexmark’s sales and finance departments. We formed a project team that provided feedback on our progress and findings. Direct collaboration with functional group members ensured accurate analysis and implementation of the new expense capture processes.
Success was measured by comparing the overall profitability of the commercial sales team against the margin achievable through an indirect sales model.
Lexmark was highly satisfied with the outcome. They immediately engaged Idea House Collective for additional analytic projects, leading to a five-year partnership.
The analysis led Lexmark to switch to a more profitable distribution channel for their software solutions. Additionally, the company benefited from a simplified business organization and streamlined processes.
This case study highlights Idea House Collective’s expertise in delivering strategic solutions that address complex business challenges. Through detailed analysis, effective system implementation, and strategic collaboration, we enabled Lexmark to make informed decisions that enhanced their profitability and operational efficiency.