Client’s Challenging Situation:
A major Canadian oil & gas producer, headquartered in Alberta, experienced high turnover of its natural gas sales and marketing staff in Eastern Canada. The major’s competitors, particularly the smaller entrepreneurial competitors, were targeting the major’s clients and having success.
Scope of the Problem:
The major was in a difficult position, wanting to maintain and grow its natural gas client base in Eastern Canada while not being able to retain staff to serve and take care of their existing clients’ needs.
I remember the day vividly. Our team of owners/partners were meeting in our Eastern Canada office, discussing strategy for the upcoming year. The topic of the major’s predicament arose. Early in the discussion, one of our partners asked, “Why don’t we see if we can buy their client contracts?” Another partner said, “Why don’t we see if we can ally with the major and deliver the service they are unable to deliver to their clients?” Then we made the decision to contact the major and ask them if they would be interested in discussing these ideas.
We made that call. The major agreed to talk. A call was made. A few months later an alliance was in place and we became the major’s marketing ally for natural gas sales/marketing in Eastern Canada.
This was the first natural gas marketing alliance between a major Canadian oil & gas producer and an independent, entrepreneurial energy marketer in Eastern Canada.
The Value Delivered:
The major retained its existing clients in Eastern Canada. It was able to provide more profitable services to not only its existing clients but also to new clients. The major’s market share grew and its annual gross margin in Easter Canada grew by millions of dollars. In addition to the financial value, the alliance between our company and the major restored the strong reputation the major had in the Eastern Canadian natural gas marketplace.