2. Customer Experience Approach
Recent research discovered that only 8% of customers think that
their experience with their vendors were superior, whereas 80%
of vendors think that they delivered a superior one.
So research points out an obvious disconnect.
By focusing on core products instead of understanding the
customer’s experience, many companies lose their customer and
never know why.
Also, by not understanding the customer, companies lose an
opportunity to create value and cement relationships.
3. Product- to a Solution-Centered Approach
Don’t start with product first. Instead, start with
understanding the customer’s problem and end
with products and services that solve that
problem.
The exchange should not be transaction-based
but rather be an interactive exchange with the
objective of developing a relationship around
c0-creating value with the customer.
4. Work with the Customer
◦ Co-creating value means that products and
services are developed in concert
(integrated) with the customer such that its
benefits provides solutions to customer
problems.
◦ Services are a critical feature of the solution:
It provides a valuable basis for competitive
advantage.
It’s an important driver of profitability.
5. From a Product to a Solutions Perspective
Product Perspective Solutions Perspective
Value
Proposition
Win by creating innovative
products and enriching
features of existing products
Win by creating and delivering
superior customer solutions
Value
Creation
Value is created by the firm Value is co-created by the customer
and the firm
Designing
Offerings
Start with the product or
service, and then target
customer segments
Start with the customer problem, and
then assemble required products and
services to solve the problem
Company-
Customer
Relationship
Transaction-based Interaction-based and centered on
the co-creation of solutions
Focus on
Quality
Quality of internal processes
and company offerings
Quality of customer-firm interactions
7. Cont..
Market Solutions
Instead of marketing products, we need to focus on
solutions. Solution selling is not new – for years
marketers have been stressing selling benefits, not just
features.
Provide Access to Your Solutions
Today there is less focus on a physical or geographic
place to sell a product (such as in what media do we
advertise, at which trade shows, etc.) than there is on
access – do you have your product well-positioned
online so that when someone wants or needs it, they
can find you?
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8. Market the Value of Your Solution
Value-based pricing has been used for years because
B2B marketers realize that their ability to differentiate
from the competition drives pricing. Selling on price,
for example with a cost-plus pricing approach, is not as
profitable.
Educate Prospects about Your Solution
Instead of promoting your solution with cool ads,
catchy phrases and “push” marketing (marketing that
is pushed upon prospects), educate prospects about
your solution and attract (“pull”) them to your
solution.
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Cont..
9. The type of education depends on the stage of your solution
lifecycle (this used to be called the product lifecycle).
In the early stages of a solution’s lifecycle, you need to educate
prospects about what your solution is and why they need it.
As the market for your solution begins to grow, you need to get
more aggressive and get market share quickly.
Then, as the market matures, you need to differentiate and
perhaps choose a niche on which to focus.
In a declining market, continued value-add information about
your solution can help keep sales going.
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11. DETERMINE UNIQUE CAPABILITIES
Before developing solutions, B2B firms must:
1. Define their own capabilities
2. Ways to use them to help customers to:
a. Reduce costs
b. Increase responsiveness
c. Improve quality
d. Maybe even contract to do some of the work
Products provide the platform for the delivery of
services.
12. B2B sellers Providing a solution is a customized and
integrated combination of products and services for
meeting customer needs.
Customers view A solution as a set of customer-
company relational processes that involve:
1. Defining customer needs
2. Customizing, integrating and deploying products &
services
3. Providing post-deployment customer support
Aimed at meeting (solving) business customers’ needs
(problems).
ADOPTING A
STRONG RELATIONSHIP FOCUS
13. DO SERVICE TRANSITION STRATEGIES PAY OFF?
To improve competitiveness many firms add services
to their existing product offerings to make…
1. The firm’s value offering more unique
2. Duplication difficult for rivals
3. Products more valuable to customers
… thereby enhancing profitability and firm value.
Does it pay off?
1. Confirmation comes when firms that add services see
an increase in sales from 20 – 30%.
2. Adding services is more effective for firms that relate
the service to their core products.
3. Adding services is effective in turbulent or slow
growth industries, but counterproductive in stable or
high growth industries.
14. RELATIONAL PROCESSES COMPRISING A
CUSTOMER SOLUTION
Defining Customer Requirements and Business
Needs
Customizing and Integrating Good and Services to
Fit Customer’s Requirements
Deploying and Installing Products in a Customer’s
Environment
Providing Ongoing Post-deployment Customer
Support
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15. CUSTOMER’S ROLE IN NEW SERVICES
Customer adaptiveness-
It refers to the degree to which a customer is
willing to adjust its routines and processes to
accommodate a supplier’s products.
Solution effectiveness
Solution effectiveness is enhanced if the customer
provides information and guidelines concerning the
priorities and sensitivities of various stakeholders in
the customer firm.
Solution effectiveness can be enhanced if the
customer provides counseling to a supplier
concerning the unique elements of its operations.
17. BENEFITS OF SOLUTION MARKETING
It offers:
I. New avenues of growth
II. New ways to differentiate
III. Higher customer loyalty
18. GROWTH OPPORTUNITIES
Services, by their very nature, offer far more
than core products can offer.
However, marketers need to understand the
true need (problem) that core products
presently solve.
Next, when looking at the core need, ask,
“Are there other ways to solve that
problem?”
Other ways can lead to new products.
19. SERVICE SOLUTIONS FACILITATES DIFFERENTIATION
Business marketers who emphasize
solutions sustain differentiation because
solutions offer a wider variety of services
that can be customized to meet customers’
unique needs.
By co-creating solutions, business
marketers enhance loyalty resulting in the
customer creating barriers for competition.
20. Business services that are intangible-dominant market offerings.
Few services are totally intangible – they often contain
elements with tangible properties.
21. What is a good service?
A good service is
one that meets or exceeds the
customer’s expectations.
Therefore, marketers should position their
service a bit below what they, in fact, can
deliver.
Under-promise and over-deliver!
22. 5 Dimensions for Business Services
• Customers tend to focus on five dimensions in
evaluating business service quality.
1. Reliability
2. Responsiveness
3. Assurance
4. Empathy
5. Tangibles
• Among these dimensions, reliability – delivery
on promises – is most important to customers.
