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Cambridge Consultants Innovation Day 2012: Touch point enhancement maximising product uptake
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Cambridge Consultants Innovation Day 2012: Touch point enhancement maximising product uptake

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Customers increasingly look at value/attributes when purchasing products. Attributes can be features and specification or service models enhancing the value of the individual products. This talk …

Customers increasingly look at value/attributes when purchasing products. Attributes can be features and specification or service models enhancing the value of the individual products. This talk examines methods to determine the impact of key offerings which enhance uptake of products in favour of competing products and technologies, while also examining the different types of customers that exist, and how their needs vary in response to different levels of benefits associated with how such products are offered.

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  • 1. Touch Point enhancement: maximisingproduct uptakeInnovation Day 2012Tim ClayCommercially Confidential 12 November 2012 INNOV12-P-054 v1.0
  • 2. Rate of product uptake will depend on the relative segment in which thecustomers exist - target messaging should apply only to receptive customers Customer types Behaviours Innovators – Well Less likely to be influenced informed risk takers willing by peer recommendations to try unproven products Use only after peer Early Adopters – Ride recommendation on innovators coat-tails Use only after peer Early Majority – Careful recommendation & waiting consumers avoiding risk for product to be proven Late Majority – Sceptical Need to be led by the consumers who acquire hand products once established Laggards – Avoidance of Not influential changeCommercially Confidential 2 12 November 2012 INNOV12-P-054 v1.0
  • 3. Offerings and messages will vary according to the position of the product withinthe product life-cycle – as customers will have different needs Introduction Growth Maturity Introduction Phase Product Establish branding & Quality Enhanced features quality maintained, for differentiation Building product additional awareness & market features & development services added Pricing Low to take market Maintained with Potential price Growth Phase share, high for high - increasing decline with Build Brand preference end utility or recovery demand competition & increase market of development costs share Distribution Selective to key New channels More intensive customers until with increasing with incentives Maturity Phase routine adoption demand Defend market share, Promotion Aimed at Innovators Broader Emphasises maximise profit & Early Adopters audience product differentiationCommercially Confidential 3 12 November 2012 INNOV12-P-054 v1.0
  • 4. Vendors need to deliver product messages to different customer segments atdifferent phases of the life-cycle Q: How do we define our A: To continuously understand customers and understand the the behaviour of each customer compelling messages to be segment and continuously define delivered at any point in the and refine the ‘Touch Points’ that product life- cycle? will enhance customer adoption and retentionCommercially Confidential 4 12 November 2012 INNOV12-P-054 v1.0
  • 5. Understanding customer characteristics and reinforcement of key messageswith ‘Touch Points’ by segment leads to greater perception of ‘Brand Benefit’ “Repeated interactions that Touch points strengthen the emotional, psychological or physicalinvestment a customer has in a Brand” Brand Benefit Ron Shevlin SegmentationCommercially Confidential 5 12 November 2012 INNOV12-P-054 v1.0
  • 6. Understanding customer characteristics and reinforcement of key messageswith ‘Touch Points’ by segment leads to greater perception of ‘Brand Benefit’ Touch Points Goal is to leverage customer experience as a competitive advantage to create positive and consistent experience at all ‘Touch Points’ ‘Touch points’ are physical, communications and human interactions that customers experience during their relationship lifecycle with your company allowing compelling messaging to create a ‘Brand Benefit’ ‘Touch Points’ need to be mapped across the Customer Relationship LifecycleCommercially Confidential 6 12 November 2012 INNOV12-P-054 v1.0
  • 7. The Customer Relationship Lifecycle (CRL) is a continuum of activities designed to take the customer from a pre-purchase to advocacy relationship “Customer satisfaction is worthless, customer loyalty is priceless” Jeffrey Gitomer Awareness Consideration Satisfaction Advocacy Knowledge Selection/ Loyalty Trial Pre-Purchase Post-Purchase Purchase Increasing repeat sales – customer will be willing to pay price premium Increased Brand awareness – customer will champion your product Improving customer retention – customer will form partnership with youCommercially Confidential 7 12 November 2012 INNOV12-P-054 v1.0
  • 8. ‘Touch Points’ can be optimised for the customer type according to the product life-cycle phase and through the customer relationship life-cycle Awareness Consideration Satisfaction Advocacy Knowledge Selection/ Loyalty Trial Pre-Purchase Post-Purchase Purchase • Customer needs vary throughout the CRL • Optimise and deploy ‘Touch Points’ which will move prospects and customers through the CRL • What ‘Touch Points’ are valued highly by one customer or segment may not be by anotherCommercially Confidential 8 12 November 2012 INNOV12-P-054 v1.0
  • 9. ‘Touch Point’ mapping is an essential tool to quantify and refine activities on acontinuous basis through the product lifecycleInterviews with internal stakeholders andcustomersList ‘Touch Points’ and determine customer needsand levers in each CRL stageInternal stakeholder and customer ratings of theefficacy and value of ‘Touch Points’ are recordedMap data along the stages of the CRLAnalysis yields intelligence that forms thecustomer ‘Touch Point’ management plan (CTM) tobe measured and monitored over timeCommercially Confidential 9 12 November 2012 INNOV12-P-054 v1.0
  • 10. Compelling reasons why it is recognised that touchpoint mapping works – savingmoney in the sales process, increasing sales and allowing profitable growth Saves Money: An increase of customer loyalty of 1% is equivalent to 10% cost reduction (Source: Bain & Co.) Touchpoint Management – is effective communications, Increases Sales: paired with compelling Probability of selling to a new arguments, to drive repeat prospect is only 5 – 20%; the sales to customer increasingly probability of selling to an engaged with a product or existing customer is 65%. service (Source: Marketing Metrics) Grows Profitably: Customer Loyalty accounts for 38% of margin, 40% of revenue growth, and 38% of shareholder value (Source: Accenture Research)Commercially Confidential 10 12 November 2012 INNOV12-P-054 v1.0
  • 11. Through key targeting and messaging, Intuitive Surgical provides enhancedpatient, surgeon and hospital value Growth of Intuitive Surgical 2,500,000 2,000,000 Revenue ($m) Intuitive Surgical, one of Gross Profit ($m) Revenue ($m) the fastest growing 1,500,000 companies, currently in 1,000,000 a growth phase 500,000 0 2005 2006 2007 2008 2009 2010 2011 2012 Year Provide patients with procedures options that are both highly effective and less invasive than other surgical options Provide surgeons with reliable and easy to use products Da Vinci surgical robot Increase surgical revenue and reducing costs through lower complication rates and reduced length of patient stayCommercially Confidential 11 12 November 2012 INNOV12-P-054 v1.0
  • 12. Direct hospital, surgeon and patient advertising leads to increasing patientnumbers and recruitment of sugeons wishing to make Da Vinci a career Hospital Surgeon Patient Introduction of Da VinciCommercially Confidential 12 12 November 2012 INNOV12-P-054 v1.0
  • 13. Reinforcement of ‘Touch Points’ can be seen across every aspect of Intuitive’sservices Training – 25 training centres throughout US, Europe, Asia and Latin America and on-line communities Hospital Management – Design and management of Da Vinci suites Although the operating room is responsible for 20% - 40% of a hospital’s costs, 68% of the hospital’s annual revenues were related to surgery Education – Clinical robotics fellowship, clinical robotics research grants, technology research grants Reimbursement Management – Advising institutions and surgeonsCommercially Confidential 13 12 November 2012 INNOV12-P-054 v1.0
  • 14. A serendipitous collision of events can drive successful sales of product – thesecret is to build good collateral from such events………. Results of Madit II Publicity that Dick trial showing a 63% Cheney had one fall in heart failure implanted risk In 2002, Medtronic Inc and St Jude Medical saw ICD sales rise by 54% and 57% respectively to a combined market size greater than $460m Implantable Cardioverter Defibrillator In 2003, Medicare and Medicaid approved reimbursement for ICDsCommercially Confidential 14 12 November 2012 INNOV12-P-054 v1.0
  • 15. However, be careful what you wish for…......’Touch Points’ you do not want Boston Scientific/Guidant recalled approximately 73,000 Guidant Implantable Cardiac Defibrillators (ICDs) in 2005Commercially Confidential 15 12 November 2012 INNOV12-P-054 v1.0
  • 16. Reinforcement of ‘Brand Benefit’ by deployment of ‘Touch Points’ acrossdifferent customer ‘Segments’ will enhance customer retention • Understand key customer segments by behavioural type and target them appropriately to improve their experience • Following segmentation, ‘Touch Points’ can be used to enhance customer acquisition and retention over the product life-cycle • Evaluating ‘Touch Points’ by segment leads to greater perception of ‘Brand Benefit’ • ‘Touch Points’ can be optimised through customer relationship life-cycle • ‘Touch Point’ mapping is an essential process to qualify, quantify and refine results oriented sales activities throughout the lifetime of a productCommercially Confidential 16 12 November 2012 INNOV12-P-054 v1.0
  • 17. Contact details:Cambridge Consultants Ltd Cambridge Consultants IncScience Park, Milton Road 101 Main StreetCambridge, CB4 0DW Cambridge MA 02142England USATel: +44(0)1223 420024 Tel: +1 617 532 4700Fax: +44(0)1223 423373 Fax: +1 617 532 4747Registered No. 1036298 Englandinfo@CambridgeConsultants.comwww.CambridgeConsultants.comCambridge Consultants is part of the Altran group, theEuropean leader in Innovation Consulting. www.Altran.comCommercially Confidential This Presentation contains ideas and information which are proprietary to CambridgeConsultants Limited and/or Cambridge Consultants Inc: it is given to you in confidence. You are authorised to openand view any electronic copy we send you of this document within your organisation and to print a single copy.Otherwise the material may not in whole or in part be copied, stored electronically or communicated to third partieswithout the prior written agreement of Cambridge Consultants Limited and/or Cambridge Consultants Inc.© 2010 Cambridge Consultants Ltd, Cambridge Consultants Inc. All rights reserved.Commercially Confidential 17 12 November 2012 INNOV12-P-054 v1.0