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  • Identify external trends and influencesAnalyze market, competitors, and customersCollect and manage knowledge and dataRecommend strategic directionsDevelop business case, secure sponsorship, and select teamDevelop hypothesis and research planConduct market research and develop solutions and targeting toolsValidate solutions, profile customers and develop customer insightsSelect and prioritize segments and communicate outcomesAlign business model and portfolioInnovate and create solutionsDefine positioning and create/validate value propsImplement and realize value-based pricingOptimize customer experience through aligning organizationDevelop channel and sales strategyLaunch external programs/education and communicationsMeasure and improve performance to drive changeBuild GE brand at critical touch pointsDevelop breakthrough advertising campaigns
  • Identify external trends and influencesAnalyze market, competitors, and customersCollect and manage knowledge and dataRecommend strategic directionsDevelop business case, secure sponsorship, and select teamDevelop hypothesis and research planConduct market research and develop solutions and targeting toolsValidate solutions, profile customers and develop customer insightsSelect and prioritize segments and communicate outcomesAlign business model and portfolioInnovate and create solutionsDefine positioning and create/validate value propsImplement and realize value-based pricingOptimize customer experience through aligning organizationDevelop channel and sales strategyLaunch external programs/education and communicationsMeasure and improve performance to drive changeBuild GE brand at critical touch pointsDevelop breakthrough advertising campaigns
  • PriceService & Tech SupportSales Support & RelationshipWarranty/ GuaranteesDeliveryProduct FeaturesProductivity ImprovementBrand re/ Expert Opinion
  • Segment cheat sheets for sales included description of the segment characteristics, key messaging, potential product solutions they would be interested in.Personas included characteristics of those individuals our sales reps would be talking to at our customers, what their pain points would be, what messaging would resonate with them, how to tailor the conversation around their needs.
  • Completed late March 2011Survey conducted blind, interview-style352 responses, mostly US and LASOnly 10% of respondents from GE listCross section of customers v.s. potential
  • Completed late March 2011Survey conducted blind, interview-style352 responses, mostly US and LASOnly 10% of respondents from GE listCross section of customers v.s. potential
  • Establishing baseline internal business metrics – OTD, Quote, Customer ServiceCost out opportunities through business process improvement projects to improve cycle times and improve price positioningProduct quality and NPI opportunities

Transcript

  • 1. Taking Action on Research Insights – 2 Best Practice Examples
  • 2. g
  • 3. Presentation Goal • Get a basic understanding of how you can use segmentation market research and the customer insights gained to implement small changes within your organization
  • 4. Presentation Agenda • Air Filtration Business Overview • Review our Customer Insights Approach and Process • Business Case Example: Air Filtration; Using Needs- Based Segmentation Research to take Action • Business Case Example: Air Filtration; Using a VOC Business Survey to take Action • Summary
  • 5. Air Filtration Strategy • Help customers achieve air quality and plant performance goals with products and solutions for Gas Turbine Inlet Filtration and Industrial Filtration. • With more than 40 years in air quality management expertise to serve our customers, we are committed to improving power plant performance and helping the world’s infrastructures run cleaner, smarter and more efficiently. Products • Gas Turbine Inlet Systems • Gas Turbine Inlet Filters • Bags & Cages • Pleated Filters • Membrane Technology • Performance Fabrics & Micro Filtration • Baghouse Accessories & Replacement Parts • Acoustic & Impulse Cleaning Systems
  • 6. Customer Insights Approach
  • 7. Market Knowledge Segmentation & Targeting Value Creation Go-To-Market Process Our Approach & Process Commercial Activation • Market Trends • Competitive Landscape • Customer Needs • Segment Profiling • Customer preferences • Value Proposition • Go to Market Plan • Competitive Positioning • Pricing • Marketing Execution • Branding
  • 8. Market Knowledge Segmentation & Targeting Value Creation Go-To-Market Process Our Approach & Process Commercial Activation • Market Trends • Competitive Landscape • Customer Needs • Segment Profiling • Customer preferences • Value Proposition • Go to Market Plan • Competitive Positioning • Pricing • Marketing Execution • Branding
  • 9. Segmentation v.s. Classification •Needs-based Segmentation •Primary research driven •Survey customer on needs, attitudes, usage – Financing use – Packages of service – Price sensitivity – Relationship management •Classification •Secondary data driven •Create clusters based on like performing data – Credit performance – Firmographics – Geography
  • 10. Segmentation answers the critical questions … •Who are our most profitable customers? •How many more prospects look like them? •What are their key needs / benefits? •How do we serve them better? •Resource targeting – Leads, rep activity, approval, servicing •Solution tailoring – Price, distribution, communication / advertising – Products, Services, Innovation
  • 11. Best Practice #1 – Customer Segmentation Study
  • 12. Best Practice #1 - Segmentation 1. Needs Based Segmentation Research Objective: Understand what drives our customer to purchase our products and what are their key needs
  • 13. Segmentation Study Structure  4 Studies across our product lines in 2009  Global study included customers in United States, Germany, Latin America, Western Europe, and Middle East  Over 500 respondents (Both current customers and non-customers)  Multi-channel (phone, web survey, LinkedIn)
  • 14. 1. Price 2. Service & Tech Support 3. Sales Support & Relationship 4. Warranty/ Guarantees 5. Delivery 6. Product Features 7. Productivity Improvement 8. Brand Rep/ Expert Opinion Identified 8 key purchase drivers (in priority order of importance) Purchase Drivers What drives customers to buy from suppliers like us?
  • 15. Segmentation Common Insights Build awareness and overcome the status quo Product durability and reputation is important Low cost to serve model is needed Meeting commitments is key (delivery, qualit y, technology)
  • 16. Risk averse “Do it for me” Sales Support Delivery Expert Op / Brand Convenience *Key Characteristics Performance Highly technical Seek innovation Product Features Productivity Impr. *Major Influences Relationship Improve operation Value technology Svc & Tech Support Expert Op / Brand Warranty / Guarantee Price Lowest price Basic products Price Delivery Emerging Segments
  • 17. Business Segments Segmentation Tools Key Personas Within Each Business Segment • Plant Managers • Chief Engineers • Project Manager • Sourcing Manager • AP Finance Manager • Operations Manager Price Buyer Convenience Buyer Operations Manager Plant Manager Each with their own needs and purchasing behaviors….
  • 18. Developing multi-level messaging for greatest impact Volkswagen Example Safe & Reliable Innovative, Sustainability, Re iability “Superior value, social responsibility and a practical commitment to sustainability” Communicating to those who look at safety first • “The people want a mini-van that drives like a Volkswagen” Routan • Communicating the key business objectives through power positional statements • Recognizing and using the industry needs within its messaging • Having a clear understanding of your key segments • Messaging to their key needs, traits, and concerns • Focusing on product and service detailed information • Cater to the targeted personas and segments Business level Segment level Product/Service level
  • 19. Segmentation Action Summary  Identified our most profitable segments  Tagged our database of customers  Developed segmentation quick reference sheets and personas to help our IS team in improved identification of customer needs and influencing the purchase decision  Drove strategic organizational structure changes to support a cost to serve model and improve ease of doing business  Used segmentation to help drive more targeted marketing campaigns
  • 20. Best Practice #2 – Business Operations Survey
  • 21. Best Practice #2 – Customer Expectations 1. Needs Based Segmentation Research 2. Operational Business Survey Sales Aids & Marketing Tools More Targeted Value Propositions NPI Support Business Process Improvements Customer Journey Map Resulted in: Objective: To define what customers expected out of a supplier across and establish baselines Objective: Understand what drives our customer to purchase our products and what are their key needs
  • 22. 1. Validate - Validate purchase drivers from segmentation study 2. Baseline Customer Expectations – Quantifiable definitions related to responsiveness and customer expectations 3. Retention – Identify actions to keep customers longer and drive more profitable business 4. Win-Back – Identify why customers leave suppliers 5. Competitive Intel – Gain pertinent intel and benchmarking Business Survey Objectives & Goals
  • 23. Quality •Product •Service Price • Influencer • Competitiveness Customer Experience •Quote •Order •Delivery •Service •Technical Support •Billing/ Invoicing Brand/ Reputation •Familiarity •Consideration Survey Question Categories
  • 24. Survey Structure  Completed late March 2011  Survey conducted double-blind, interview-style  352 responses, mostly US and LAS  Cross section of customers v.s. potential  Only 10% of respondents were from customer list
  • 25. Responsiveness Expectations:  24 hour turnaround from their supplier on any question or issue they may have  Live person every time they call a suppliers  Order status information available when they call Customer Retention/ Win-back  Leave their suppliers primarily due to better pricing from another  Due to a poor customer experience Survey Hypothesis
  • 26. Results: Validated Key Purchase Drivers 73% 72% 58% 57% 55% 50% 46% 44% 41% 37% 33% 33% 28% 27% 26% 26% 20% 23% 35% 30% 34% 37% 36% 37% 40% 44% 37% 37% 36% 37% 37% 38% 5% 4% 10% 8% 11% 16% 15% 17% 17% 23% 25% 27% 26% 28% 26% 5% Quality Delivery Responsiveness ROI Tech Support Product Perf Guaranty Supplier Reputation Customer Service Sales Support Quote Cycle Time Single Point of Contact Low Purchase Price Web Capabilities Flexible Warranty Terms Supplier used for a long time Local inventory Very important Somewhat important Neither Somewhat unimportant Very unimportant
  • 27. Responsiveness  Customers expect 24 hour turnaround from their supplier on any question or issue they may have  Customers expect to get a live person every time they call a suppliers Customer Retention/ Win-back  Customers leave their suppliers primarily due to better pricing from another  Customers leave their current supplier due to a poor customer experience Survey Results Summary Quotes – 67% expect 24 hour turn Delivery – 82% expect 2 weeks or less Cust Serv – 89% want answer in < 24 hrs Tech Support – +30% want answer on the phone Price – 63% leave due to price Cust Serv – 49% of product line A customers leave because of customer service issues Product Quality – 53% of product line B customers leave due to poor quality Customers Expect Retention Drivers
  • 28. Resulted In Actions:  Business Metrics (OTD, Quote & CS Responsiveness etc.)  Cost out = Competitiveness  Process Improvements  Product Quality Improvements Survey Results and Actions
  • 29. In Summary: Taking Insights into Action Insights From: Market Research Various VOC NPS Data Performance Metrics Business Process Improvements Corporate Priorities = Overall Improved Customer Experience Drives Evidenced in 2012 by a 68% increase in TNPS score over ‘11
  • 30. Thank you for having me! Roberta O’Keith, MBA, CPC, ELI-MP 913-221-5214 rokeith70@yahoo.com http://www.linkedin.com/in/rokeith/