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Drinks suppliers miss out on more than £27,500 of annual sales
Alcoholic drinks suppliers could unlock an average of £27,575 in repeat sales by focusing on customer loyalty, according to a new report.
The potential sum was revealed in new research from customer relationship management software company ProspectSoft, part of The Access Group, which worked with Oxford Brookes Business School looking at links between customer loyalty and revenue growth.
The findings, which were based on the profit that manufacturers, wholesalers and distributors could win from customers who don’t spend beyond their third purchase, reportedly saw researchers review 15.8 million sales from firms trading with more than two million businesses, over a period of approximately six months.
Using sales data and average order value across five sectors, the report pinpointed just how much repeat sales revenue was being missed.
At the start of the year, Diageo revealed plans to switch off direct supply to UK wholesalers if they failed to order a minimum of £2 million in stock per year.
One element that was positive from the findings however was that alcoholic drinks suppliers were proving to at least stay ahead of their counterparts in other areas of the supply chain by sporting the least missing revenue.
As such, the alcoholic drinks supply chain showed that it was well ahead of health and beauty supply which was showing it was missing out on just over £53,000 in repeat sales each year.
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