04: Strategic hit rate below 60%? How to improve your sales efficiency as an automotive supplier

There is a silent problem in many sales organizations of automotive suppliers: the strategic hit rate - i.e. the success rate for strategically important acquisition projects - is below 60%. This means that less than two out of three of the projects actually targeted by sales are won. Instead, companies land orders that do not fit in with their strategic direction - or are left empty-handed altogether.

At first glance, this may seem like an operational issue. In reality, it has a profound strategic impact on capacity utilization, margins and market position. Those who fail to solve the problem will lose competitiveness in the long term.

But what is the reason for this and, above all, what can be done about it?

Why a low strategic hit rate is dangerous

In the automotive supply industry, planning is everything. Those who recognize early on which vehicle models, platforms or technologies will be relevant in the coming years can deploy their development and production resources in a targeted manner. However, if the projects you focus on are not won in the end, there is a dangerous disconnect between planning and reality.

The consequences:

• Underutilization of plants or development resources

• Lower margins because short-term "emergency orders" have to be accepted

• Loss of strategic market position compared to more focused competitors

The strategic hit rate is therefore more than just a KPI - it is an early indicator of the effectiveness of the overall sales strategy.

Four steps to a higher strategic hit rate

The good news: the problem can be solved. Digital Automotive, the leading solution for strategic sales planning in the supplier industry, has identified four concrete levers that sales organizations can use to significantly increase their strategic hit rate:

1. Define promising target projects

Only those who know where the journey is heading can navigate correctly. This means that sales must focus on projects that match the company's strategic direction - technologically, geographically and in terms of target customers.

It helps to draw on market information, e.g. from S&P Global Mobility, in order to make well-founded decisions about future growth areas.

Practical example: A supplier decides to focus on e-mobility platforms in Asia - and prioritizes precisely those OEM projects that arise in this area.

2. Make target projects visible - throughout management

Strategic projects must not just be on the sales agenda - they must be a top priority. Regular visualization and reporting of these projects in management ensures attention, focus and clear decisions.

In practice, this means clear dashboards, regularly updated status reports and joint review meetings.

Advantage: Top management recognizes risks at an early stage, can set priorities and provide active support - instead of chasing after missed opportunities afterwards.

3. Prioritize strategic projects in the acquisition process

Of course, not every strategic project is a sure-fire success. But it is crucial that these projects are given the necessary focus in day-to-day sales work. This means

• Directing resources specifically to these projects

• Deploy competent teams

• Initiate early customer contacts

This is the only way to turn strategic planning into operational success.

Tip: With systematic opportunity management, strategic and non-strategic projects can be clearly distinguished - and treated differently.

4. Make success measurable - and reward it

What is not measured is not managed. It is therefore important to regularly analyze the strategic hit rate - at project level, but also at team or regional level. This allows you to quickly identify where things are going wrong.

Even more effective: incentivize strategic success. If employees feel that strategically important orders are also valued accordingly - financially or through recognition - their motivation to focus specifically on these projects increases.

The solution: Digital Automotive

All of these levers can be implemented with the modules of Digital Automotive - a sales platform developed specifically for automotive suppliers. It combines strategic sales planning with operational sales management and offers

• Structured target customer and project planning

• Intelligent dashboards for management and sales

• Integrated KPI analyses incl. strategic hit rate

• Support for prioritizing and processing target projects

And best of all: the solution has been developed by practitioners for practitioners - with a deep understanding of the industry and direct practicability in day-to-day sales.

Conclusion: Success can be planned - but only with focus

If your strategic hit rate is below 60 %, this is no coincidence - but a wake-up call. With a clear focus on the right projects, continuous visibility in management and measurable sales performance, the success rate can be significantly increased.

Questions? Interested in a live demo?
Then visit us at: digital-automotive-supplier.com