ITCo, a global IT company, has concerns about erosion of its market share as competition intensifies. Eighty percent of their business comes through RPQ/P bidding scenarios. Their challenge is:
01. Price competitiveness continues to put pressure on margins & EBITDA contribution
02. Their three-year business plan is reliant on YoY revenue growth of 5%
Having been introduced to ECO Capacity Exchange, ITCo realised the benefits of being an early adopter of the solution. The ECE Client Success team informed ITCo that one of their new business target customers are ‘ECO Enabled’, meaning they hold ECO they wish to spend and are including an ECO payment option in an upcoming $30 million, multi-year bid.
ITCo works with ECE to develop a highly compelling ECO bid covering all aspects of the offering with an option of a cash and ECO mix. Whilst other companies receiving the bid show strong interest in ECO adoption, they are unable to meet the timescales of the new target customer. ITCo therefore offers the most compelling and immediately attractive trade terms.
ITCo, by being an early mover and accepting payment in ECO, wins the business and includes an extension option to add additional technology solutions in year 2 of a 3 year contract. The resulting award of the contract means taking business away from an incumbent competitor, thus increasing market share.