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Why 83% of Construction Companies Drive Less Than 23% of Employment

Why AI-Driven Targeting of the Profitable 10% for 25%+ Revenue Growth

Why Market share Growth Can be in Your Pocket

Drawing from proven data-driven strategies in competitive industries, and BiltData.ai’s deep dive into over 100 million transactions across construction equipment rentals, fleet ownership, and product support—one truth stands out: success in sales is not about casting the widest net; it’s about focusing on the prospects most likely to become loyal, profitable partners. Too often, companies chase the wrong clients—those with low staying power and minimal potential for long-term value, wasting resources on segments that yield diminishing returns. Instead, the key lies in identifying and replicating your high-value customers through precise, math-based targeting. Market share gains can truly be accessible, in your pocket when equipped with the right technology, tools and team. BiltData is one such team pushing the limits of using AI to bring unparalleled value to the construction equipment industry.

Having spent years in the trenches, and supported by the best industry minds such as Ron Slee, I can tell you: it is not magic, just math. Granted, math at mega-scale. And in today’s market, where data chaos can bury your best opportunities, transforming raw data into actionable insights starts with a simple choice—be contrarian, avoid the crowd’s tactics, and zero in on what really moves the needle.

“A staggering 81% of all businesses employ 10 or fewer people, yet these small operations account for less than 10% of the total workforce.”

Consider the broader U.S. business landscape: A staggering 81% of all businesses employ 10 or fewer people, yet these small businesses account for less than 10% of the total workforce and even less of gross economic output. This disparity highlights a common trap:  pursuing volume over value. In the construction sector, the pattern is even more pronounced: 83% of construction businesses have fewer than 20 employees, collectively employing less than 23% of the industry’s workforce. These small companies, while numerous, often lack the scale for consistent, high-margin equipment rentals, purchases, or product support. Chasing them can lead to fleeting transactions with little repeat business, eroding profitability over time. Large enterprises might seem like the “big fish,” but they represent a tiny fraction—just 0.3% of businesses employ 500 or more, yet they dominate 50%+ of employment. Mid-tier players, however, offer the sweet spot: They have growth potential and decision-making agility, making them ideal for cloning strategies.

Picture this for major earthmoving OEMs like Deere, Cat, Komatsu, Case, VOLVO, or Bobcat. Imagine having a unified view of customer and prospect data across your dealer network, linked to real-time project intel that tells you what the best, and future best ‘buyers’ purchase, rent and consume in parts and service. This allows for accurate retail forecasting and production planning by spotting repeat buyers, the 10% driving 80% of revenue and an even greater share of profitability. Shared predictive buyer intelligence aligns incentives, hyper-focusing on specific names for joint strategies. The roadmap: start with AI-driven predictive tools to identify these buyers, then collaborate on campaigns to grow each, name by name. Benefits include cutting inventory by 20-30% (saving millions in holding costs), gaining 10-15% market share through targeted pushes, and bolstering dealer support—potentially unlocking $1+ billion in industry-wide efficiency by smoothing demand forecasts.

For dealers, visualize a day where reps skip 5+ manual steps in tabulating data, use natural language chat to effortlessly be served prospects with spend details, scoring, contacts, maps, routes, and specs in a few clicks—tied to active projects. The guidepost: integrate this into daily workflows via chat-based queries, turning data work into quick action. BiltData.ai will do this for you. This can boost participation rates by 5X+, shortening sales cycles by 30-50% and adding $1M to $5M of high margin revenue per territory manager through faster closes and higher win rates.

When OEMs and dealers team up, envision a shared ecosystem where data flows seamlessly for hyper-focus on targets. Dealers handle efficiency on the ground, while OEMs refine forecasting—all through aligned goals like joint campaigns. The path: use unified platforms to merge insights, then execute targeted outreach. Value lies in amplified ROI, with complete visibility reducing supply chain waste by 25-40%—translating to billions saved industry-wide in excess inventory and misallocated capital.

These approaches complement existing systems like CRM and marketing automation by filling data gaps for one-to-one sales and marketing. For example, flag aged competitor fleets (5-year Cat loaders for Deere upgrades) or tailor pitches on efficiency versus owned equipment. Suggest rentals for project gaps or drive parts/service by age (10-year assets). The roadmap: trigger personalized outreach from CRM, starting with high score leads. For OEMs, this unifies datasets to support dealers; for salespeople, it means 7x faster action, cutting research time and boosting close rates by 20-30%.

Drawing inspiration from “AI-Driven Value Management” by Craig LeGrande and Venkat Lakshminarayanan, AI links OEMs, dealers, rental companies, and customers to boost margins while cutting costs. By automating analysis, BiltData answers “what value can I get, will I get it, did I get it?”  In construction equipment, this means transforming raw data into actionable insights, making complex data simple so teams find and win buyers quicker.

Real-world results are embedded in deep market and customer insights such as:

  • The Philadelphia PA market, ranked #8 for 2030 spending at $47.7 billion, shows high-rises and infrastructure driving demand, with 200 MW data centers fueling tech growth.
  • Merlo America’s Geo-Forecast highlights California and Texas at $162.2 billion and $95.5 billion of 2030 construction .
  • One major earthmoving dealer solved dirty data, enabling reps to act 7x faster, boosting participation and adding millions in revenue.

In essence, it’s not about chasing every lead—it’s about selecting those with true potential. BiltData.ai transforms this complexity into clarity, delivering streamlined, multi-dimensional insights for rapid, confident decisions. We stand behind our outcomes: achieve the promised results or receive a full refund.

At BiltData.ai, we’ve empowered construction equipment OEMs, dealers, and rental companies to build this culture, enhancing decision-making through predictive buyer intelligence, actionable dashboards, and easy chat-driven tools that tie data to outcomes. Using a combination of data science and advanced technologies, BiltData reveals the most profitable sectors, the most promising prospects, and untapped territories. The era of prolonged data collection and analysis cycles is over. BiltData transforms complexity into clarity—delivering streamlined, multi-dimensional insights that empower rapid, confident decision-making. It’s not magic—just math.

The Great Inversion

How AI and Crypto Are Flipping the Economic Pyramid

The exploitative pyramid sitting on top of every transaction is collapsing.

Good riddance.

For centuries, the economic model has been simple: two people want to transact, and an army of intermediaries insert themselves on top, extracting value at every step.

 

Want to buy a house? Here’s a 6% real estate commission, mortgage broker fees, title insurance, escrow fees, inspection fees, and appraisal fees. A $500,000 house comes with $40,000+ in extraction costs—8% of the transaction going to people who neither built the house nor will live in it.

Want to hire someone? Recruiters take 25% of first-year salary. A $100,000 hire costs you $25,000 to an intermediary who made introductions and checked references.

Want to accept payments? Credit card companies take 3%, payment processors take another cut, and if you’re international, add currency conversion fees and wire transfer costs.

This is the exploitative pyramid on top of transactions.

Every exchange between buyer and seller supports a towering structure of intermediaries, each extracting their piece, each defending their position as “necessary,” each fighting innovation that threatens their rent-seeking position.

But something fundamental is changing.

Not evolution. Inversion.

The Old Model: Pyramid on Top (Extraction Economy)

Picture every transaction as a direct line between buyer and seller. Now picture a massive pyramid sitting on top of that line, pressing down with its weight, extracting value at every level:

Layer 5: Regulatory arbitrageurs and compliance consultants
Layer 4: Industry associations and certification bodies
Layer 3: Advisors, consultants, and “experts”
Layer 2: Platforms, brokers, and agents
Layer 1: Payment processors and financial intermediaries
BASE: The actual buyer-seller transaction (crushed under the weight)

The pyramid extracts in two ways:

  1. Direct fees: Commissions, percentages, transaction costs
  2. Indirect costs: Delays, complexity, opacity, dependency

The defining characteristic:

The pyramid sits ON TOP, pressing down, making transactions harder, slower, and more expensive.

And here’s the key: the pyramid benefits from complexity. The more confusing the process, the more “necessary” the intermediaries become. They don’t just extract value—they actively create friction to justify their existence.

 Real-World Examples of the Exploitative Pyramid:

 Real Estate Transaction ($500K home):

  • Buyer’s agent: $15,000 (3%)
  • Seller’s agent: $15,000 (3%)
  • Title insurance: $2,500
  • Escrow fees: $2,000
  • Mortgage broker: $3,000
  • Inspections/Appraisals: $1,500

Total extraction: $39,000 (7.8%)

Time to close: 30-45 days

International Payment ($50,000):

  • Wire transfer fee: $50
  • Correspondent bank fees: $150
  • Currency conversion spread: $500 (1%)

Total extraction: $700 (1.4%)

Time to settle: 3-5 business days

 Hiring an Employee ($100K salary):

 Recruiter commission: $25,000 (25%)

  • Background check services: $500
  • Skills assessment platforms: $300

Total extraction: $25,800 (25.8%)

Time to hire: 60-90 days

 Business Planning (Annual):

  • Financial consultant: $60,000
  • Workforce planning advisor: $40,000
  • Marketing ROI consultant: $35,000

Total extraction: $135,000

Time to implement: 3-6 months

Notice the pattern: High extraction + Long delays + Complex processes = Maximum dependency

The New Model: Pyramid Underneath (Support Economy)

Now imagine that same buyer-seller transaction.

But instead of a pyramid on top extracting value, there’s a pyramid underneath—providing support, infrastructure, and intelligence.

BASE TRANSACTION: Direct buyer-seller exchange (instant, transparent, low-cost)
Layer 1: AI providing intelligence, analysis, and decision support
Layer 2: Blockchain providing trust, verification, and settlement
Layer 3: Smart contracts automating execution and compliance
Layer 4: Decentralized infrastructure (storage, compute, networks)
Layer 5: Open protocols and standards (no gatekeepers)

The defining characteristic:

The pyramid sits UNDERNEATH, lifting up, making transactions easier, faster, and cheaper.

This inverted pyramid doesn’t extract—it supports. It doesn’t create friction—it removes it. It doesn’t benefit from complexity—it thrives on simplicity.

The Same Transactions in the New Model:

Real Estate Transaction ($500K home) – Web3 Version:

  • Smart contract execution: $50
  • Blockchain title recording: $100
  • AI home valuation: $20
  • Digital inspection report: $200
  • Total cost: $370 (0.07%)
  • Time to close: 24-48 hours
  • Savings: $38,630 (99% reduction in extraction)

International Payment ($50,000) – Crypto Version:

  • Stablecoin transfer: $2
  • Network fee: $5
  • Instant settlement: $0
  • Total cost: $7 (0.01%)
  • Time to settle: 3-15 seconds
  • Savings: $693 (99% reduction)

Hiring an Employee ($100K salary) – AI Version:

  • AI skills matching: $50
  • Automated reference verification: $20
  • Smart contract employment agreement: $10
  • Total cost: $80 (0.08%)
  • Time to hire: 3-7 days
  • Savings: $25,720 (99.7% reduction)

Business Planning (Annual) – Zintoro AI Version:

  • AI-powered planning platform: $4,200/year
  • Real-time scenario modeling: Included
  • Predictive analytics: Included
  • Total cost: $4,200

Time to implement: 3 minutes to connect, instant insights

Savings: $130,800 (97% reduction)

The inversion is complete: 99% less extraction, 99% faster execution, 100% more transparency.

The Three Forces Driving The Inversion

Cryptocurrency: The Trust Layer Without Trustees

Bitcoin’s breakthrough wasn’t digital money—it was trustless transactions.

For the first time in history, two parties can exchange value directly without trusting each other OR a third party. The blockchain is the trust layer, but it doesn’t extract rent for providing trust.

Old model: Bank sits on top, charges fees, delays settlement, controls access
New model: Protocol sits underneath, costs pennies, settles instantly, open to all

Crypto removes the most expensive intermediary of all: the financial intermediary.

Visa transaction: 2.5% + $0.10, 2-3 days settlement
Bitcoin Lightning: $0.003, instant settlement
Ethereum stablecoin: $2-5, 15 seconds settlement

The pyramid on top extracted billions. The infrastructure underneath costs nearly nothing.

  1. Artificial Intelligence: The Intelligence Layer Without Experts

AI’s breakthrough isn’t automation—it’s democratized expertise.

For the first time in history, anyone can access expert-level analysis, strategy, and decision-making without hiring experts. The AI is the intelligence layer, but it doesn’t charge consultant rates for providing intelligence.

Old model: Consultant sits on top, charges $200-500/hour, creates dependency
New model: AI sits underneath, costs $10-50/month, creates independence

AI removes the second most expensive intermediary: the knowledge intermediary.

Strategic consultant: $80,000 per engagement, 3-month timeline
AI strategy platform: $699/month, instant analysis

Financial advisor: $200/hour, recommends products with kickbacks
AI financial planner: $29/month, algorithm-driven optimization

Legal document review: $400/hour, 40 hours = $16,000
AI legal assistant: $50/month, instant analysis

The pyramid on top extracted your wealth. The infrastructure underneath multiplies it.

  1. Smart Contracts: The Execution Layer Without Executors

Smart contracts’ breakthrough isn’t automation—it’s trustless execution.

For the first time in history, agreements execute themselves based on predetermined conditions. No lawyers enforcing terms, no escrow agents holding funds, no judges settling disputes.

Old model: Intermediaries sit on top executing, enforcing, and extracting
New model: Code sits underneath executing automatically for gas fees

Smart contracts remove the third most expensive intermediary: the execution intermediary.

Real estate closing: $4,000 in escrow/title fees, 30 days
Smart contract escrow: $5-$50 in gas fees, instant

Music royalty collection: Label keeps 80%, pays quarterly
Smart contract royalties: Artist keeps 95%, pays per-stream

Freelance payment escrow: Upwork takes 20%, holds funds
Smart contract milestone: 1% fee, releases automatically

Why This Matters: The Economics of Inversion

When pyramids sit on top, they extract. When pyramids sit underneath, they multiply.

The Math of Extraction vs. Support

Traditional Transaction:

  • Value created by buyer and seller: $100
  • Value extracted by pyramid on top: $20-40
  • Value reaching participants: $60-80
  • Net value destruction: 20-40%

Inverted Transaction:

  • Value created by buyer and seller: $100
  • Cost of infrastructure underneath: $0.10-1
  • Value reaching participants: $99-99.90
  • Net value multiplication: Infrastructure enables $100 transaction that wouldn’t have happened (too expensive in old model)

The pyramid on top makes transactions worth less.
The pyramid underneath makes transactions worth more.

Real Example: The $10 Trillion Remittance Market

Old Model (Western Union on top):

  • Global remittances: $600 billion annually
  • Average extraction: 6.25%
  • Total value extracted: $37.5 billion
  • Speed: 3-5 days
  • Beneficiaries: Western Union shareholders

New Model (Crypto underneath):

  • Global crypto remittances: Growing rapidly
  • Average cost: <0.5%
  • Total cost: $3 billion (savings of $34.5 billion)
  • Speed: 3 seconds to 15 minutes
  • Beneficiaries: Senders and receivers (often unbanked populations)

That’s $34.5 billion per year moving from extraction to value delivery. That’s not disruption—that’s inversion.

The Support Pyramid in Action: How It Works

Let’s walk through a complete transaction in the new economy:

Scenario: Hiring a Developer Directly from Another Country

Old Pyramid (On Top – Extraction Model):

  1. Post job → LinkedIn charges $500/month for recruiter access
  2. Source candidates → Recruiter takes 25% of salary ($25K for $100K hire)
  3. Interview → Scheduling coordinators, multiple rounds
  4. Verify credentials → Background check services: $500
  5. Create contract → Lawyer: $2,000 to draft employment agreement
  6. Set up payment → International wire: $50 per transfer + 3% FX spread
  7. Manage compliance → HR consultant: $5,000 for international employment setup

Total extraction: $32,550 (32.5% of salary)
Time to productivity: 90-120 days
Result: Expensive, slow, opaque

New Pyramid (Underneath – Support Model):

  1. Post job → Decentralized talent network (free or $50 flat fee)
  2. AI matches candidates → Skills assessment + cultural fit algorithm ($0, platform feature)
  3. Smart interview scheduling → AI coordinates across time zones ($0, included)
  4. Verify credentials → Blockchain-verified credentials ($5 verification fee)
  5. Create contract → Smart contract template auto-generates ($10 deployment)
  6. Set up payment → Stablecoin salary payments ($2 per transaction)
  7. Manage compliance → AI ensures tax treaty optimization ($20/month)

Total cost: $315 (0.3% of salary)
Time to productivity: 7-14 days
Result: Cheap, fast, transparent

Savings: $32,235 + 75 days

What’s Different?

The extraction pyramid:

  • Benefits from complexity (more confusion = more fees)
  • Creates delays (time = more billable hours)
  • Maintains opacity (mystery = perceived value)
  • Fights innovation (disruption = lost revenue)

The support pyramid:

  • Benefits from simplicity (efficiency = more users)
  • Eliminates delays (speed = better product)
  • Ensures transparency (clarity = trust)
  • Embraces innovation (improvement = competitive advantage)

The Network Effects of Inversion

Here’s where it gets exponential.

When pyramids extract, they create negative network effects:

  • More users = more extraction = higher costs for everyone
  • Growth benefits the pyramid, not the participants

When pyramids support, they create positive network effects:

  • More users = better AI models = lower costs for everyone
  • Growth benefits everyone proportionally

Example: Payment Networks

Visa (Extraction Model):

  • 3.5 billion cardholders
  • Merchants pay 2-3% per transaction
  • More volume = more total extraction (higher absolute profits for Visa)

Merchants lose, Visa wins

Lightning Network (Support Model):

  • Growing adoption
  • Users pay $0.001-0.01 per transaction
  • More volume = better routing = cheaper/faster for everyone

Everyone wins proportionally

The old economy scaled extraction.

The new economy scales value.

The Objections (And Why They’re Wrong)

“But we need intermediaries for trust!”

No, we needed intermediaries before we had cryptographic trust.

Blockchain provides mathematical certainty. No trusted third party required. The code is the trust layer.

The real question: Do you trust math more than humans who profit from your transaction?

“But AI can’t replace human expertise!”

You’re right—it surpasses it.

AI doesn’t get tired, doesn’t have conflicts of interest, doesn’t charge by the hour, doesn’t hoard knowledge, and improves continuously.

Human experts will always exist for edge cases. But for 90% of decisions, AI delivers better, faster, cheaper analysis.

“But regulation requires intermediaries!”

No, regulation requires COMPLIANCE. Smart contracts can enforce compliance better than humans.

Regulators are catching up. Once they realize smart contracts can enforce rules more reliably than intermediaries, the regulatory moat disappears.

“But this will destroy jobs!”

It will destroy parasitic extraction. It will create productive value.

Yes, mortgage brokers will need new careers. So did telegraph operators, switchboard operators, and travel agents.

The question isn’t whether we should protect extractive jobs. It’s whether we should force everyone to pay extraction fees to preserve those jobs.

The Transition: From Extraction to Support

This inversion won’t happen overnight. But it’s inevitable.

Phase 1: Parallel Systems (We Are Here)

  • Old pyramid still dominant
  • New pyramid growing in niches
  • Early adopters getting 10x-100x savings
  • Incumbents dismissing as “fringe”

Phase 2: Competitive Pressure (Next 2-5 years)

  • New pyramid reaches critical mass
  • Cost differential becomes undeniable
  • Businesses switch to survive
  • Incumbents fighting regulatory battles

Phase 3: Rapid Inversion (5-10 years)

  • New pyramid becomes default
  • Old pyramid relegated to legacy systems
  • Massive wealth transfer from extraction to creation
  • Economic boom from capital freed up

Phase 4: Complete Inversion (10+ years)

  • Future generations ask: “Wait, people used to pay 6% to sell their house?”
  • Extraction economy viewed as barbaric
  • Support economy is just “the economy”

Real Companies Building the Support Pyramid

This isn’t theory. It’s happening now.

Financial Infrastructure:

  • Stripe (traditional): 2.9% + $0.30 per transaction
  • XRP,XLM  $0.003 per transaction (99.9% cheaper)

Smart Contracts:

  • Escrow.com (traditional): 3.25% of transaction value
  • Solano, Cardano, SUI, Ethereum escrow (DeFi): $1-$50 flat fee regardless of size

Business Planning:

  • McKinsey consultant (traditional): $500/hour, $200K+ engagements
  • Zintoro AI (support): $350month, instant insights

Hiring:

  • Robert Half recruiter (traditional): 25% of first-year salary
  • Braintrust (Web3): 10% fee, paid in tokens, no intermediary markup

Real Estate:

  • Traditional agents (extraction): 6% commission
  • Propy (blockchain): 1% or flat fee, smart contract settlement

Creator Economy:

  • Record label (extraction): Keeps 80% of revenue
  • Audius (Web3): Artist keeps 90%, smart contract royalties

The Zintoro Example: Business Planning Inverted

Let me bring this home with a concrete example.

The Old Pyramid on Top:

Business owner needs to plan for:

  • Cash flow and runway
  • Hiring and capacity
  • Customer growth and retention
  • Marketing ROI
  • Strategic decisions

The extraction pyramid:

  1. CFO consultant: $150-300/hour
  2. Workforce planning advisor: $200/hour
  3. Marketing ROI analyst: $175/hour
  4. Strategic planning facilitator: $400/hour
  5. Implementation consultants: $50-100K per project

Annual cost: $150,000-300,000

Dependency: Complete (you don’t own the models or insights)
Speed: 2–4-week turnaround for analysis
Result: Expensive advice you can’t afford to ignore OR act on

The New Pyramid Underneath:

Zintoro AI: Forecasting & Analytics Program

  • Connects to your business data (3 minutes)
  • Analyzes cash flow, workforce, inventory, facilities simultaneously
  • Runs unlimited scenarios in real-time
  • Provides predictive alerts and recommendations
  • Updates automatically as new data flows
  • Forecasts your next 12month Revenues, transactions, customers by branch and department with >97% accuracy

Annual cost: $4,200 (Professional plan)

Independence: Complete (you own your data and insights)
Speed: Instant analysis, unlimited questions
Result: Strategic intelligence for $11.50/day

Savings: $145,000-$292,000 annually (94-98% reduction)

The consultant pyramid sat on top, extracted six figures, and created dependency.

The AI pyramid sits underneath, costs $11.50/day, and creates independence.

This is the inversion. This is the future.

The Philosophical Shift: From Rent-Seeking to Value-Creation

At its core, this isn’t about technology. It’s about philosophy.

The Extraction Economy (Pyramid on Top):

  • Zero-sum: I win when you lose
  • Rent-seeking: Extract value from others’ creation
  • Complexity: Profit from confusion
  • Gatekeeping: Control access to maintain power
  • Scarcity mindset: Protect turf, resist change

The Support Economy (Pyramid Underneath):

  • Positive sum: We all win together
  • Value-creation: Enable others to create more
  • Simplicity: Profit from clarity
  • Open access: Growth comes from inclusion
  • Abundance mindset: Better tools = bigger pie

The old economy asked: “How can I extract value from this transaction?”

The new economy asks: “How can I enable more value creation?”

One leads to rent-seeking parasites on top of every transaction.

The other leads to intelligent infrastructure beneath every transaction.

The Call to Action: Choose Your Pyramid

If you’re a business owner, the choice is stark:

Keep feeding the extraction pyramid:

  • Pay 20-40% of every transaction to intermediaries
  • Wait days/weeks for what could be instant
  • Stay dependent on gatekeepers
  • Accept opacity and complexity

Or switch to the support pyramid:

  • Pay 0.1-1% for infrastructure
  • Get instant execution
  • Gain independence through direct access
  • Enjoy transparency and simplicity

If you’re building a company, the choice is existential:

Build on the extraction model:

  • Extract value from users
  • Create moats through complexity
  • Fight innovation that threatens your rent
  • Get disrupted within 5-10 years

Or build on the support model:

  • Create value for users
  • Build moats through network effects
  • Embrace innovation as competitive advantage
  • Lead the next economic era

Conclusion: The Inevitable Inversion

The pyramid sitting on top of every transaction is crumbling.

Not because of ideology or activism, but because of mathematics.

Math doesn’t care about your business model:

  • 0.1% beats 6%
  • Instant beats 30 days
  • Transparent beats opaque
  • Direct beats intermediated

The only question is: How fast will the inversion happen?

That depends on how quickly people realize they have a choice.

You can keep paying the extraction tax.

Or you can flip the pyramid, put infrastructure underneath where it belongs, and keep the value you create.

The technology is ready.

The platforms are live.

The math is undeniable.

The inversion has begun.

Which side of history will you be on?

Try the support pyramid yourself:

For Business Planning: Zintoro – $350/mo. instead of $150K/year consultants

For Payments: XRP, XLM – $0.003 instead of 3%

For Smart Contracts: Ethereum, Cardano, XLM, Solano – $5-50 instead of $5,000 lawyers

For Property: Propy – 1% instead of 6% agents

The new economy isn’t coming.

It’s here.

Stop feeding the pyramid on top.

Start using the pyramid underneath.

The author invites discussion, debate, and dissent. The future is being built in public. Join the conversation.

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Marketing Strategies that Every Dealer Needs

A Paper by Debbie Frakes and Steve Clegg.

Heavy equipment dealers have to generate business consistently and ensure that their current business keeps coming to them instead of going to the competition. That means that they need to be on the lookout for new customers constantly, make it easy for prospects to find them, and consistently provide the best service possible. In order to accomplish these goals, there are four key marketing strategies that every dealer should be implementing:

• Customer satisfaction surveys
• Monthly email marketing
• Email distribution list expansion
• Search engine optimization (SEO)

Our partner company, Winsby, offers these services and more. They act as your full marketing department and put a team of writers, designers, programmers, callers, and marketing managers at your disposal. Below are some of the results that they produce for their clients.

Customer satisfaction surveys

The quickest way to uncover issues that customers are having with your products, services, or processes is to call and ask them. The sooner you learn about problems, the faster you can solve them, before a customer leaves you for another dealer. By having a third party conduct the surveys, like our partner company Winsby, people will tend to be more candid than they would be with your own employees. Their surveys boost customer retention by 30% and provide their clients with an ROI up to 2,395X.

Monthly email marketing

75% of B2B companies say they prefer email over other types of marketing communications. Marketing emails are effective, because they remind customers and prospects about everything you do and establish you as a resource for them, so when it comes time to make a purchase, they think of you. The emails that Winsby sends out on behalf of their clients increase customer purchases two to three times and deliver an ROI of over 1,000X.

Email distribution list expansion

The effectiveness of your emails starts with your list. The problem is that more than 20% of an equipment dealer’s email distribution list goes bad every year. To keep it current, you have to continuously find new prospects who look like your customers, call them, and add them to your list. You should also call through your current list to ensure you still have the correct information for all your contacts. The key is to get the email address of the person at the company who can actually make the decision to purchase your products or services.

Search engine optimization (SEO)

The best equipment dealer websites are the ones that bring new customers in through the door. But before your site can accomplish that, you need to show up in search rankings for the people looking for your products and services. Winsby will consistently add keyword rich blog posts and new page content, so your website ranks better, and more people find you!

If you want to start generating significantly more business for your equipment dealership, then contact Winsby today. They will be your full marketing department for the cost of just one full time employee and help you implement these strategies to make more sales and keep your current customers happy.

 

Why Conduct an Industry Analysis

Top Reasons to Conduct an Industry Analysis for Your Business

Heavy equipment dealers have limited resources at their disposal. In order to achieve consistent growth, they have to use those resources as effectively as possible. Success comes down to making the best decisions they can about where to focus their efforts, particularly when it comes to marketing and sales. The key is to target potential customers who are most likely to work with you. An industry analysis from our partner company Zintoro will tell you who those people are.

What is an industry analysis?

Zintoro completes your industry analysis by analyzing which industries are most common in your customer list. Using the Standard Industrial Classification (SIC) codes, you can understand which industries your different customers are in and which industries you do business with most often. The analysis looks at your customer count, sales volume, revenue, number of potential customers, and a variety of other key metrics for every SIC code found associated with your list of customers.

How an industry analysis helps you grow

 

  1. Identify your most valuable customer segments

An industry analysis helps you know which industries your current customers represent, which sectors you serve most frequently, and where the most value lies for your business. That way, you will recognize which industries offer the greatest opportunities for growth moving forward.

  1. Effectively prioritize limited sales and marketing resources

With a clear understanding of which customer segments are valuable to your business, you can focus your time, budget, and sales outreach on industries that want and need your products in order to drive more revenue. The result is that your resources are used more efficiently, and you are targeting those prospects that are most likely to convert into customers.

  1. Tailor messaging and offers to specific markets

The insights offered by a Zintoro industry analysis assist you with refining your marketing and sales strategies. For example, if most of your customers use equipment for demolition, rather than excavation, you can adjust your messaging to highlight machine features that are valuable for demolition jobs. This tailored approach improves engagement with your marketing materials and boosts sales.

  1. Make more informed business decisions

An industry analysis provides a solid, data driven foundation for decisions about product inventory, sales promotions, and market expansion. It gives you the confidence to pursue new opportunities in sectors where you already have a strong presence or high growth potential.

Unlock new opportunities through Zintoro

A Zintoro industry analysis gives you the clarity required to grow your market share and maximize the value of you current and potential customer base. If you want to have a better understanding of your customers and know where to focus your limited resources, then contact Zintoro for an industry analysis today!

 Click here to contact Zintoro.

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The Most Important Key Metrics for Equipment Dealers

The Four of the MOST Important Key Metrics for Equipment Dealers

Operating a successful equipment dealership requires understanding your customers and how they interact with your business. Several core metrics can reveal what’s working—and where you might be at risk of losing revenue. By focusing on these metrics, you will be able to make clear, data driven decisions that drive long term growth and success.

  • Customer retention
  • At risk customers
  • Types of purchases
  • Geographic market

Customer retention

What it is and why it matters:

 Customer retention measures the percentage of customers that purchased within the last 12 months and also purchased within the prior 12 months. It’s an important metric, because retaining a customer is far less expensive—and often more profitable—than acquiring a new one. Long term retention is crucial for your business’s profitability. For example, when it comes to equipment dealers, the revenue that each customer generates skyrockets when they go from year two to year three while working with you. Customers purchase 2.9X more equipment, 9.1X more rentals, 4.1X more service, and 5.6X more parts in the third year, compared to their purchases during their second year as a customer.

How to improve it:

The easiest method for boosting retention is to find out why customers are leaving. The best way to do that is through customer satisfaction surveys conducted by an outside third party. Using a third party will elicit candid comments that customers may not want to share with an employee of your company, and the surveys will provide specific feedback, so you can solve any issues quickly.

Our partner company, Winsby, regularly conducts customer satisfaction surveys for their clients. They see an average increase in retention rates of 20% or more when customers are routinely surveyed about their experience with a company. For one group of equipment dealers who work with them, the ROI of conducting customer satisfaction surveys is 2,395X. The average customer surveyed spends $74,823 more each year and makes 13 more transactions, compared to the customers who aren’t surveyed.

At risk customers

What it is and why it matters:

At risk customers are those whose purchasing behavior indicates they may be preparing to leave you for the competition. A drop in purchase frequency or longer intervals between transactions is the clearest warning sign. If they’re still in business but buying elsewhere, your revenue and customer base are both in jeopardy. Recognizing these signs early is key to keeping your customers from switching to a competitor.

How to improve it:

Similar to increasing customer retention, the best way to keep at risk customers is to implement regular customer satisfaction surveys. By asking customers what issues they are having, and solving those issues as quickly as possible, at-risk customers will be more likely to stay with you and even become more loyal than they were before.

Types of purchases

What it is and why it matters:

Understanding what your customers are buying is essential to developing successful marketing and sales strategies. Are they coming to you for emergency rentals, regular service, or parts? Knowing the common triggers for purchases can help you promote the right products at the right time, ultimately boosting customer retention and revenue.

How to improve it:

Identify “trigger products” that lead to larger transactions or ongoing relationships. For instance, frequent parts like filters and fluids often lead to bigger service engagements or equipment sales. Make sure your dealership captures those easy wins instead of losing them to general supply houses. Analyze purchase patterns by category and adjust your promotions and messaging to highlight these high-opportunity areas.

Distance for geographic market performance

What it is and why it matters:

Distance for geographic market measures the number of miles that customers will travel to do business with you. If distance matters, it will be exceedingly difficult to retain customers beyond the range that is comfortable for them to travel. For example, most heavy equipment dealers have a service area that is usually a maximum of 60 miles. The primary reason is that beyond that distance the dealer won’t be able to reach a customer who needs emergency service quickly enough.

When you have difficulty gaining and keeping customers beyond a certain distance, it’s not worth trying to sell your products and services to customers beyond that maximum range. For that reason, it’s critical to know how far the reach is for your company.

How to improve it:

If your business seems to be affected by the distance from your location to the customer, it’s important to conduct a market analysis of potential customers to determine how large your potential market is and exactly what the distance is for your maximum reach. This analysis will help guide your marketing strategy and prevent you from wasting resources on leads and prospects that are unlikely to work with you anyway.

We work with two partner companies, Zintoro and Winsby. Zintoro, provides equipment dealers with comprehensive business analytics reporting, helping them track key business metrics like types of purchases, purchase frequency, customer retention, and more. Winsby helps dealers improve those numbers through effective marketing programs that include customer satisfaction surveys, email campaigns, and more.

As a first step towards improving your dealership’s revenue, schedule a Zintoro demo today to uncover valuable insights and start making data driven decisions!

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AI is Flipping the Economy on its Head – Here’s What You Need to Know

Guest writer Steve Clegg tackles the worries and opportunities that come with Artificial Intelligence in “AI is Flipping the Economy on its Head.”

Let’s talk about something huge that’s happening right now – AI is completely changing how our economy works. And trust me, this is way more interesting than it might sound at first.

What’s the Big Deal?

Think about how you buy stuff today versus 10 years ago. Remember when you had to:

Deal with pushy salespeople who knew nothing about what you actually wanted
Wait forever for customer service
Get stuck with one-size-fits-all products
Pay crazy fees for simple financial transactions

Well, AI is killing all of that. And it’s about time!

The Old Way is Dying (Good Riddance!)

For basically forever, business worked like a pyramid:
Big shots at the top making all the decisions
Middle managers pushing paper
Customers at the bottom dealing with whatever they got

That’s flipping upside down now. AI is putting customers where they should be – at the top. 

Everything else is just support.

Here’s What’s Coming (Actually, It’s Already Here)

Super-Personal Everything

AI knows what you want before you do
Products that adapt to YOU
No more “sorry, that’s just our policy” nonsense

Money Getting Smarter

Real-time everything – prices, exchange rates, interest
No more waiting 3 days for a simple bank transfer
Local prices that make sense for YOUR area

Cutting Out the Middlemen

Direct person-to-person deals
Way lower costs
Faster everything

The Tricky Parts

Look, it’s not all sunshine and rainbows. We’ve got some stuff to figure out:
What happens to jobs that AI can do better
Making sure AI plays fair
Updating laws that were written for the horse-and-buggy era
Dealing with money that’s backed by… well, nothing really

Why Should You Care?
Because this train is leaving the station, and you want to be on it, not under it. Companies that get this are crushing it. The ones still doing things the old way? Well, let’s just say Blockbuster probably wished they’d seen Netflix coming.

What’s Next?
We’re going to dive into how all this actually works – no boring technical stuff, just real talk about how AI is changing the game for:
How you buy and sell
How money moves around
How businesses run
How we all make a living

Ready to see where this is going? Stick around – it’s going to be a wild ride!

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Zintoro’s Foundation

Zintoro’s Foundation

Guest writer Steve Clegg details “Zintoro’s Foundation” and how AI can be a valuable tool for business analysis. This kicks off a focus on AI for his next blog posts.

An equipment dealer’s business is driven by Each Customer’s Transactions, Expectations & Experience. 

The result of these interactions is responsible for the dealer’s customer retention and purchase frequency. 

Their impressions of the experience are simply based on the frequency and recency of the exchange of goods and services between two people. These transactions are represented by 65% Parts, 24% Service and 9% Rental with Equipment new and used only 2%.

Their impressions of the experience are simply based on the frequency and recency of the exchange of goods and services between two people. 

Revenues and profits are the result not the driver. 65% 24% 9% 2% 

Parts Service Rental Equipment Parts Rental Service Expectations 2% 

Equipment Customer/ Employee Experience Equipment Dealer Customer Expectations Are Based on their Prior Transaction Experiences As shown below with 98% of these transactions being Parts, Service and Rental

Revenues and profits are the result not the driver of your customer retention and engagement.

The world is on the cusp of an unprecedented economic transformation, driven by the rapid advancements in Artificial Intelligence (AI) technology. As we stand at the threshold of this new era, it is crucial to understand how AI will revolutionize the very foundation of our economy – the exchange of goods and services. The immense potential of AI is already reshaping economic transactions, improving efficiency, and optimizing resource management. 

This will change the structure of organizations to supporting customer transactions versus transactions supporting layers of bureaucratic management. The pyramid will be turned upside down.

For centuries, the economy has relied on the simple exchange of goods and services between individuals and organizations. However, traditional methods of conducting these exchanges often suffer from inefficiencies, such as information asymmetry, suboptimal resource allocation, large none contributing bureaucracies, financial exposure, poor returns on capital and lack of personalization. AI promises to address these challenges by leveraging vast amounts of data, advanced algorithms, and machine learning techniques to optimize every aspect of the transaction process thereby minimizing the back- office burden and associated transaction costs and asset timing risks. 

Imagine a world where AI-powered systems can analyze, accurately forecast consumer behavior and preferences in real-time, providing personalized product and service recommendations that cater to individual needs. 

Supply chains and logistics networks would be streamlined, ensuring the right goods are delivered to the right place at the right time, with minimal waste and maximum efficiency. 

Dynamic pricing strategies, based on real-time market conditions and demand forecasting, are already helping businesses optimize and accurately forecast their revenue and profits while providing fair and competitive prices to consumers. 

These capabilities already exist, the top-down management and control has already started to be replaced with a bottom-up efficient support structure for the two people transaction exchange that retains customers and builds relationships driving customer transaction growth and retention. AI has the potential to revolutionize resource management and allocation. 

By leveraging predictive models and optimization algorithms, businesses can minimize waste, reduce energy consumption, and promote sustainable practices. AI-driven workforce management systems can match the right skills to the right tasks, enhancing productivity, training, and job satisfaction. 

Management oversight and decision-making processes can be augmented by AI-generated insights and recommendations, enabling leaders to make informed, data-driven choices. As we embark on this journey, it is essential to recognize that the AI revolution is not about replacing humans and human intelligence but rather about augmenting and enhancing it. The collaboration between humans and AI will be the key to unlocking the full potential of this technology in driving economic growth and creating a more efficient, sustainable, and prosperous future. 

In the following blogs, we will provide a comprehensive understanding of how AI is transforming the economy through optimized exchanges and resource efficiency. We will equip readers with the knowledge and tools necessary to navigate this new landscape and harness the power of AI in their own economic endeavors. Get ready to embark on an exciting exploration of the AI revolution and its profound impact on the way we exchange goods and services. Together, we will uncover the boundless possibilities that AI holds for transforming the economy and shaping a better future for all. The AI revolution has already started.

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What Is an Industry Analysis and What Can It Do for Your Business?

What Is an Industry Analysis and What Can It Do for Your Business?

Guest writers Debbie Frakes and Steve Clegg are back with another resource available to businesses in “What Is an Industry Analysis and What Can It Do for Your Business?”

Equipment dealers only have a limited number of resources at their disposal. The key to being successful is allocating those resources in the most productive, efficient way possible. When it comes to your marketing and sales efforts, it’s impossible to target everyone. You must make important decisions about who to go after based on who will produce the most value for your business. 

The key is to target potential customers who are most likely to work with you. An industry analysis tells you who those people are. 

What is an industry analysis?

Zintoro conducts your industry analysis by determining which industries are most prevalent in your customer list. By looking at Standard Industrial Classification (SIC) codes, you can identify which industries your different customers are in and which industries you do business with most often. 

Part of the industry analysis is looking at the customer count, sales volume, revenue, number of potential customers, and a variety of other key metrics for every SIC code found in your list. That way, you can understand the market potential for each segment of your current customer base and how much value they can produce for your business. 

Armed with the knowledge of your customer base and the revenue potential of different industries, you’ll be better informed on which new prospects to target with your limited resources. An industry analysis helps you focus your time, money, and effort on increasing your market share in the industries that you know have the most potential for your equipment dealership. 

Use what the industry analysis tells you.

Conducting a Zintoro industry analysis gives you a better understanding of your customers and how valuable different segments of your base are. Once you know who will deliver the greatest return, you will know where to invest your marketing and sales resources. More than just giving you directions, an industry analysis also helps you tailor your messaging, exclusive offers, and even inventory to appeal to the most valuable segments in your customer list. 

For example, if you sell excavators, but you find out that most of your customers exclusively oversee demolition projects instead of digging jobs, then you can change your marketing and sales messaging to match that. In your emails you can use pictures of excavators demolishing a building and highlight features of the machine that are most useful on demo jobs. The more targeted you are at the customers that produce the most value, the fewer resources you’ll waste going after customers who are less likely to work with you.

Start better understanding your customers and your business by contacting Zintoro for an industry analysis today! 

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Equipment Dealer Strategies for Growing Sales

Equipment Dealer Strategies for Growing Sales

Guest writers Steve Clegg and Debbie Frakes return with their blog this week covering the ways you can create lifelong customers in “Equipment Dealer Strategies for Growing Sales.”

The key to sustained success in selling equipment, parts, and service is to create long-term customers. And creating long term customers comes down to following several equipment dealer strategies that show your customers you care about their businesses and are invested in helping them grow their businesses, and that you know what works. Here are the golden rules for dealers that you need to follow:

  1. Never make your problem the customer’s problem; they have enough problems of their own, which is why they are calling you.
  2. Always say YES! Then, the question becomes when and how much.
  3. Be proactive and contact the customer before they contact you.
  4. Manage your customers’ expectations. Customers often don’t remember what you told them; they only remember what they expected to happen.

In this article, we’re going to cover these rules and strategies, and how they make you more effective at selling equipment, parts, and service, all while developing more loyal customers. 

Be positive with customers and say YES! 

When talking with customers, you should always be finding a way to solve their problem. For example, if one branch doesn’t have the part they need in stock, find the part at another location, and tell the customer when they will receive it. You don’t want to tell a customer that you can’t do something, you want to tell them how you can. If you start with a positive reply of what you can do, there’s a 70% chance of closing compared to a 50% chance if you start with a no. If you’re the dealer that can effectively solve their problem, then you will continue to be their source for equipment, parts, and service for them. 

How to respond when a customer needs a product or service from you. 

Being positive and solving the problem shows the customer that you understand their needs and care about their problems. Here is an example of the hierarchy of responding to customers: 

  1. Tell them you have exactly what they need and when you can get it to them. 
  2. If you don’t have it at a particular branch, check other locations and give them options for delivery or pickup. 
  3. If you need to order a part, figure out how long it will take for delivery, and provide options for delivery. 
  4. If the timeline of receiving the product or service doesn’t work for them, suggest other options that could work for them. 
  5. Always tell the customer the next step and provide details of how you can solve their problem.

Stay on top of communication. 

It’s your job to keep customers informed of service updates and order status proactively. If they must call and ask about something to get an update, it’s too late. One of the most important dealer strategies is to anticipate their questions and stay ahead of them. You also need to understand which forms of communication they prefer, and when is the best time to contact them. Communicating with customers on their own terms will make it easier to reach them and shows that you respect their time.

Answer the phone every time. 

Answering the phone is critical for effective customer communication. Your team should be picking up on the third ring or sooner. The reason is that the call drops off rate is 20% per ring after three rings, and customer frustration is exponential for each additional ring and every missed call. Because only 2% to 4% of callers will leave a voicemail, answering the phone is an important first step in understanding what their needs and problems are. If you’re consistently not answering the phone or a customer has several bad phone experiences, they will start to look for another company they can work with for their equipment needs. 

Managing expectations. 

Managing expectations at every point of contact with your customers opens the opportunity to create a raving fan or to lose the customer. One of the most important equipment dealer strategies we can share with you is to always undersell and over deliver. Customers will eventually leave you for the competition if you are consistently falling short of your promised timelines. In fact, the number one reason for losing customers is mismanaged expectations. Be honest with them about when they will receive equipment and parts, when service will be completed, and your rental availability. Honesty and managed expectations will develop trust and strengthen relationships.

Our partner, Zintoro, can help. 

By consistently providing value and outstanding service, you can build long-lasting relationships with your customers and increase their loyalty to your brand. Zintoro provides you with the monthly analyses of your invoices that show your customer retention rate, which customers you’re in danger of losing, customer purchase behavior that will help you anticipate their needs, and much more. They give you the tools and data you need to keep customers, improve communication, and increase your sales. 

Schedule a Zintoro demo to find out how to boost your customer retention, track and accurately forecast business performance, and better communicate with customers. 

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Exceed Revenue Goals

Exceed Revenue Goals

Guest writers Debbie Frakes and Steve Clegg are back with a new and relevant blog post this week which covers the topic of how to meet and exceed your revenue goals.

Revenue and transaction trends tell a story about your company. They allow you to recognize sales patterns and understand what activities, processes, and methods lead to consistent business growth. Without this information, you won’t be able to make sound decisions for your company. Tracking and acting on revenue analytics and trends will help you answer the following critical questions: 

  • Who should you target for marketing initiatives? 
  • Which products or services should you focus on? 
  • What customers and prospects should your salespeople spend time contacting?

If you don’t determine the right answers to these questions, then you won’t be able to meet your revenue goals, let alone exceed them. 

How to achieve your revenue goals. 

When it comes to drivers of revenue, two of the most important analytics are the number of transactions and customer retention. They explain exactly what is happening in your business and where you may be falling short. These two revenue analytics go hand in hand, because the longer someone works with you, the more transactions they will make. 

Below is an example of a business whose new customers during the past 12 months make up 51% of their total number of customers. The numbers show how the behavior of these customers changes over time, if they keep working with you. 

Average transactions

Year 1: 3

Year 2: 13

Year 3: 18

Average revenue 

Year 1: $39,099 

Year 2: $154,537 

Year 3: $178,789

These revenue analytics show that the longer a customer works with you, the more valuable they become to your company. For this reason, when it comes to meeting and exceeding your revenue goals, retaining customers over the long term should be a primary focus of your sales and marketing teams. 

Act on revenue trend information. 

Tracking revenue analytics is great, but they won’t do you any good if you don’t actually use the information to your advantage. The area where you can make the largest impact towards meeting and exceeding your revenue goals is by improving customer retention and increasing purchase frequency. Remember, for most companies, the longer someone works with you, the more lucrative they become for you. Here are some methods for boosting your company’s customer retention and purchase frequency: 

  • Regular emails – It’s important to consistently communicate with your customers. We recommend sending several emails a month highlighting the products and services you offer, reminding them to purchase, and establishing yourself as the expert in the industry and their go-to source for assistance. Emails sent out by our partner, Winsby, typically double or triple customer purchase frequency. 
  • Offer targeted suggestions – View your customer purchase data to recognize patterns and anticipate what they may need or when they might be getting low on a product. Then you can send them a message or give them a call that is specific to their current needs. 
  • Use customer satisfaction surveys – Regularly ask for feedback from customers about how they feel about your company and how well you are fulfilling their needs. By conducting customer satisfaction surveys, you’ll find out about problems and have the opportunity to solve them before a customer leaves you. Customer satisfaction surveys conducted by Winsby typically boost retention by 20% – 30%. 
  • Calling prospects to expand your email list – Calling provides new leads and introduces customers to your company. Winsby clients see an average increase of 60% in customers’ purchases when they have been called. 

The effectiveness of Winsby email and calling services. 

Customers receiving Winsby emails typically purchase two to three times more often than customers who don’t receive emails. Here is an example the results that an equipment dealer saw with Winsby emails: 

The Winsby calling program identifies decision makers at the companies you’re targeting and then adds them to the email list. Here are the results for a dealer they work with: 

Understand the types of purchases customers are making. 

In addition to looking at customer retention and number of transactions, you also should be tracking types of purchases. Identifying which products sell the greatest quantities will help you focus your marketing and advertising strategies better. Products that are normally purchased more often will deliver a greater ROI for your marketing campaigns than less popular products would.

Once you determine your most frequently bought products, you can then place greater resources behind them and see a higher return. 

Take full advantage of revenue analytics. 

By understanding which customers produce the most value for your business and which types of products and services result in the most transactions, you can better target your sales and marketing efforts. You’ll reach and exceed your revenue goals if you focus on retaining your current customers and push the products that generate the most money. 

Our partner company, Zintoro, will track these key revenue analytics and many others, as well as provide specific strategies for improving them. Their portal shows you exactly which customers should be called when and which products should be promoted. They are the answer for equipment dealers and other businesses who want to make sense of their numbers and use them to their advantage. 

If you want to understand your revenue analytics and use proven strategies to exceed your revenue goals, contact Zintoro today for a demo. Today many businesses rely on outdated data and backward-looking reports for planning. Zintoro generates greater than 95% accuracy in their 12 month forecasts to see the future and plan versus reacting and continually trying to explain the past. 

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