LMAA Advantage Clutch Presentation October 2009 (F)

989 views

Published on

LMAA Presentation October 2009

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
989
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

LMAA Advantage Clutch Presentation October 2009 (F)

  1. 1. WHAT CLUTCH DOES Typically we measure two things: 1.  How consumer markets think and in which geographic areas that thinking is Need new picture – this one works but strongest to: its an FL image, •  Identify Distribution & Ranging Opportunities Alex read the info •  Target Trade Promotions on the left and •  Tailor Brand Marketing Campaigns show Insert me •  Drive ROI from Sales & Marketing efforts 2.  How employees think about current and potential business performance to: •  Identify areas of the business that require action •  Prioritize those actions for the greatest overall impact on results. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 2 Author: Dr. Colin Benjamin . All rights reserved in all media
  2. 2. INTRODUCTION TO WHAT WE MEASURED Our survey, in addition to the Advantage Group components focused on two key areas: 1.  How the customer thinks 2.  How satisfied the customer is with how their business is performing Insert WHY? To provide better understanding of the customer & the commercial implications of their expectations, motivations and beliefs. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 3 Author: Dr. Colin Benjamin . All rights reserved in all media
  3. 3. AN ANALOGY FOR THE TRADITIONAL CHALLENGE ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 4 Author: Dr. Colin Benjamin . All rights reserved in all media
  4. 4. HOW YOU USE IT How they Think By understanding the expectations of the customer, their thinking, we are able to better target Trade promotions and communications What they think about their business Insert By understanding the customers perception of their own business performance we can ensure that we are adding value and making it easier for that customer to deal with us ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 5 Author: Dr. Colin Benjamin . All rights reserved in all media
  5. 5. WORKING THROUGH IT How they Think 1.  The key 3 customer markets 2.  The markets explained 3.  Channel results & a working example What they think about their business Insert 1.  The 4 dimensions of business performance 2.  The dimensions explored 3.  Channel results & a working example Next and Future Steps ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 6 Author: Dr. Colin Benjamin . All rights reserved in all media
  6. 6. HOW THE CUSTOMER THINKS In our survey we included questions that enabled NEED QUOTE ON us to profile the expectations and motivations of UNDERSTANDING THE the customer, their Mindset. CUSTOMERS THINKING We tend to only look in the rear view mirror, at past sales, to segment customers. Insert Picture But by understanding their thinking we can anticipate the motivations of the customer, which allows us to better tailor our sales & marketing efforts, and improve our ROI. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 7 Author: Dr. Colin Benjamin . All rights reserved in all media
  7. 7. HOW THE CUSTOMER THINKS – THE METHODOLOGY •  We measured each respondent on the preference for all 16 possible mindsets. •  Then we looked to identify the key patterns of thinking •  We have previously identified 37 possible patterns of thinking. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 8 Author: Dr. Colin Benjamin . All rights reserved in all media
  8. 8. HOW THE CUSTOMER THINKS – THE METHODOLOGY •  In the outlet survey we identified three distinct 3 patterns of thinking. 2 • These three patterns are the basis of our segmentation of outlet respondents. 1 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 9 Author: Dr. Colin Benjamin . All rights reserved in all media
  9. 9. THREE DIFFERENT TYPES OF THINKING DEFENDERS With the hours I work, and the thanks I don’t get, the last thing I need is people coming in here with expensive new stuff. I know what sells here & I know what wont sell in this place. DEAL MAKERS We run a good profitable business here, because we carefully assess the risks & benefits with everything we do. I make sure my suppliers know what they need to deliver to improve our return on investment. DISCOVERERS We are not like other businesses, people come here because they know that we always have something new & different. We pride ourselves on the quality of our products and service and are always on the lookout for n = 360 new products that fit our offer. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 10 Author: Dr. Colin Benjamin . All rights reserved in all media
  10. 10. THREE DIFFERENT SETS OF COMMUNICATION NEEDS DEFENDERS With the hours I work, and the thanks I don’t get, the last thing I need is people coming in here with expensive new stuff. I know what sells here & I know what wont sell in this place. DEAL MAKERS We run a good profitable business here, because we carefully assess the risks & benefits with everything we do. I make sure my suppliers know what they need to deliver to improve our return on investment. DISCOVERERS We are not like other businesses, people come here because they know that we always have something new & different. We pride ourselves on the quality of our products and service and are always on the lookout for n = 360 new products that fit our offer. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 11 Author: Dr. Colin Benjamin . All rights reserved in all media
  11. 11. DEFENDERS - HOW THEY THINK The thinking of this market is characterised through statements like these: •  There is no such thing as a free lunch •  I don’t get opportunities to have fun, mate •  I am doing everything I can to support my family Picture of a guy looking for a fair deal, he •  Its tough going and no one’s going to do you any looks tired, economically challenged and has favors in this world a negative look on his face – he must be in a •  Its ok for you guys, but my boss won’t let me do that bar or liquor store •  Nah, that wont sell here, forget it •  We’ve tried that before, it didn’t sell last time and it wont sell this time. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 12 Author: Dr. Colin Benjamin . All rights reserved in all media
  12. 12. DEFENDERS - HOW THEY MAKE DECISIONS. What are they looking for: •  Reliable, dependable service •  Tried, Trusted, well known “everyday” Brands •  Low Prices – are permission to play •  Simple promotions, with low effort, that sell themselves •  The odd freebie as a reward (Merch/product) – or Same image as previous slide maybe even something special for his/her kids •  Something for their loyal “Punters” – Prizes/Gifts •  Most definitely volume based deals, Buy 2 get….. •  Gifts at the point of purchase – no redemption •  Prizes for the everyday man ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 13 Author: Dr. Colin Benjamin . All rights reserved in all media
  13. 13. DEFENDERS – DOING BUSINESS: •  Very loyal when they feel they’re being looked after •  Often come across as Negative, doubters, with little trust for suppliers •  Regularly pointing out that their buy price is not fair compared with what is being offered to others •  Very wary of new products •  Very careful about doing something differently Insert •  Short term focus, it’s the next promotion, not the plan that matters •  Will buy impulsively if they think the deal is off the table when you walk out n = 360 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 14 Author: Dr. Colin Benjamin . All rights reserved in all media
  14. 14. DEFENDERS - BUSINESS IMPLICATIONS •  These customers are focused on the basics, and will be single minded on suppliers delivering a fair deal on everyday brands…. Get that wrong and all else will be meaningless •  New products are a tough sell, you may be more effective gaining trial by bundling offers with a tried and trusted brand Insert •  Deals and margins are calculated in dollars, not percentages!!! •  Volume based rewards or deals are a winner •  If there are merch and gift based promotions on everyday brands, make sure you call on them first. n = 360 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 15 Author: Dr. Colin Benjamin . All rights reserved in all media
  15. 15. DEAL MAKERS - HOW THEY THINK The thinking of this market is characterised through statements like these: •  Let me have a think about it and I’ll come back •  Its only a good deal when it’s a better deal than you did last time •  I don’t make less than that margin on anything. You Picture of the conservative family business have to get up earlier than that mate…. man. Neatly presented with a look of •  Right, so you think, you know better experience, confidence and control •  I told you last time you were here, that’s not how I operate •  It’s got to be competitive and you know what I mean by that – I’m not here to make friends •  I can’t afford to waste my time on stuff like that ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 16 Author: Dr. Colin Benjamin . All rights reserved in all media
  16. 16. DEAL MAKERS - HOW THEY MAKE DECISIONS What are they looking for: •  Recognized brands at acceptable margins •  Credential – who else is buying this? •  Safe bets, that improve their competitiveness and their return on investment •  Convenience and Service, make it easy and efficient to do business Insert •  A better deal than the guy down the road or than your competitor offered – comparative value •  Reliability and Respect •  No surprises •  Evidence that a new products will work & that the greater the risk, the more responsibility is shared ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 17 Author: Dr. Colin Benjamin . All rights reserved in all media
  17. 17. DEAL MAKERS – DOING BUSINESS: What are they like to deal with: •  Very competitive and at times uncompromisingly demanding •  Very fact based, facts are critical •  Conservative and considered, they may take a while to come around to a new way of doing things or accepting a new range Insert •  They are influenced by the market and are a fast and first follower of proven success •  Reluctant to give things a go without a guarantee •  Acutely aware of pricing, margins and importantly what their competitors are doing n = 360 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 18 Author: Dr. Colin Benjamin . All rights reserved in all media
  18. 18. DEAL MAKERS - BUSINESS IMPLICATIONS •  Singularly focused on building a better business by getting a better deal •  Leverage is the weapon of choice they know what they have that you want and they will be determined to make you earn it •  Not usually a first choice for new product launches unless it is with a recognized brand, that is heavily Insert invested in – in this case not calling them first would be a big mistake •  Whilst they know the boundaries and stay well within theirs, they will be determined to stretch supplier boundaries. •  They will demand & critically judge supplier effort and commitment as a mark of the relationship n = 360 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 19 Author: Dr. Colin Benjamin . All rights reserved in all media
  19. 19. DISCOVERERS - HOW THEY THINK The thinking of this market is characterised through statements like these: •  Life is what you make of it •  I think if we have a big opportunity to sell more… •  We had this Pinot from Chile and it just flew out •  I am always up for trying something new, as long as Picture of younger, mid 20 to mid 30 its premium quality something, fashionably dressed and styled with a look of intrigue and exploration •  That offer is too “bogun” •  Everyone loved that tasting we did •  I have had a look into those, what do you think? •  I’m managing this place while I’m studying OR •  I based the feel of the place on a really cool place I went to in Budapest ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 20 Author: Dr. Colin Benjamin . All rights reserved in all media
  20. 20. DISCOVERERS - HOW THEY MAKE DECISIONS What are they looking for: •  Premium quality products, away from the mundane and everyday •  Knowledge - to make well informed choices •  Points of difference in products & product quality •  Promotions and experiences that they can get involved with Insert •  Opportunities to express their “global” awareness – environmentally and culturally •  Unique products that aren’t offered or carried in other outlets •  An appreciation and recognition for how they and their outlet are “different” than the rest ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 21 Author: Dr. Colin Benjamin . All rights reserved in all media
  21. 21. DISCOVERERS – DOING BUSINESS: What are they like to deal with: •  Very big on the relationship front, they are always expanding their base of contacts & friends •  Will be enthusiastic and very open to trying new & different offers •  See margin as a given, not a bargaining chip •  Will expect that they are treated differently than other Insert customers & often demand evidence of that recognition •  Very big on the experience, and therefore quality is an imperative •  They will ask a lot of questions •  They will be careful as to how they promote n = 360 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 22 Author: Dr. Colin Benjamin . All rights reserved in all media
  22. 22. DISCOVERERS - BUSINESS IMPLICATIONS • These customers are focused on the relationship and will judge the behaviour and loyalty of a supplier representative on the sharing of information and level of recognition given to them • They are always scanning the marketplace – whilst they are not price sensitive per se, they will know a good and a bad deal when they see one • Margin management is a shared responsibility • Preferential and selected distribution is an expectation Insert • Involving them in experienced based events is a core relationship builder • Involve them & their opinion in selected new product launches tailoring activity specifically for the outlet • Keeping them informed about the market, market trends and new products is a fundamental. n = 360 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 23 Author: Dr. Colin Benjamin . All rights reserved in all media
  23. 23. THE MINDSETS VARIATIONS BY CHANNEL Variations in Mindset across the industry and across channels justify a fresh look at who we are dealing with in the trade. Clear variations exist that greatly influence the suppliers ability to: Vertical blinds of all three market pictures •  Build better relationships •  Gain ranging if new lines more effectively •  Engage the customer in promotional activity •  Drive volume growth through customer accounts ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 24 Author: Dr. Colin Benjamin . All rights reserved in all media
  24. 24. MINDSETS BY CHANNEL ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 25 Author: Dr. Colin Benjamin . All rights reserved in all media
  25. 25. THE IMPLICATIONS OF DEALING WITH DIFFERENT MINDSETS The implications for trade going forward are: •  The ability of the supplier to adapt new offers to the varying customer expectations •  The need to segment the customer by the areas that influence tomorrows sale rather than yesterdays •  More effectively engage the customer by being more effective at appealing to what matters to them Vertical blinds of all three market pictures •  Generate more ROI by anticipating the adoption rate of new products or promotions by customer type or channel ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 26 Author: Dr. Colin Benjamin . All rights reserved in all media
  26. 26. OUR WORKING EXAMPLE – RESTAURANT CHANNEL •  In the Restaurant channel the thinking is clearly led by Discoverers •  Communications to this channel should favour this thinking and allow for Deal Makers •  For example: if you were launching a unique new product to this market you would target Discoverers to accelerate trial and on the basis of this trial and referral be selling secondly to the Deal Makers , who will generally require some track record •  Alternately, if you were promoting a strong existing brand, most effort should be directed at Deal Makers. Discoverers, will be enticed, if they can “do it differently”. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 27 Author: Dr. Colin Benjamin . All rights reserved in all media
  27. 27. FROM HOW I THINK - TO HOW I THINK ABOUT MY BUSINESS Picture of a happy business leader with a Vertical blinds of all three market pictures middle manager in the background with his head in his hands ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 28 Author: Dr. Colin Benjamin . All rights reserved in all media
  28. 28. HOW DO THEY THINK THEY ARE PERFORMING Our measurement of business performance pre- supposes the fact that perception is reality. We simply measure the perception of performance across a number of variables by asking: Need an image here that depicts the face •  How is the business tracking on this dimension AND of the organization and the reality of the Insert organization as being distinctly different •  What is the business capable of doing The Gap between these scores highlights the areas of focus and in need of focus in a business. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 29 Author: Dr. Colin Benjamin . All rights reserved in all media
  29. 29. A NOTE ON THE METHODOLOGY Performance Gaps are relative to account for MANAGEMENT “emotional” variations and scores are compared against each other by reversing out bias: STAFF STAKEHOLDERS SKILLS STRUCTURES SHARED VALUES Resp. Skills Skills GAP Avg. Comparative TODAY Current Potential Gap Score BALANCE A 7 9 -2.0 -1.8 -11.1% TOMORROW B 5 8 -3.0 -2.7 -11.1% SHARED VISION SYSTEMS STRATEGY SOLUTIONS SUGGESTIONS GAP scores can predict the severity of an issue within an organisation INTERNAL EXTERNAL LEADERSHIP Comparative scores, which we have used here, compare across organisations. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 30 Author: Dr. Colin Benjamin . All rights reserved in all media
  30. 30. LOOKING AT BUSINESS PERFORMANCE As suppliers, by understanding these areas we can play to a customers strength and effectively become easier to do business with. •  We are measuring 4 areas of performance: Picture of a happy business leader with a Management, middle manager in the background with his Today Leadership, Tomorrow Problem head in his hands Opportunities Solving & & Strategy Systems Customers, Staffing, Skills Internal Stakeholders External and Priorities & Tactics ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 31 Author: Dr. Colin Benjamin . All rights reserved in all media
  31. 31. OVERALL SATISFACTION An overall satisfaction score is calculated by assessing the size of the gaps across all areas of the business. These totals are then compared to the industry average to remain relative. At this High level view we can see that Off Insert Premise Customers are far happier with their businesses than On-Premise Customers. Conversely, those customers in both On and Off Premise markets, appear to be dissatisfied with their overall business performance. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 32 Author: Dr. Colin Benjamin . All rights reserved in all media
  32. 32. OVERALL SATISFACTION This general satisfaction is quite variable across channels and certainly banner groups. Even at the this high level it is clear that business performance issues impact certain channels more greatly than others. Insert This variance would directly relate to how easy these customers are to do business with n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 33 Author: Dr. Colin Benjamin . All rights reserved in all media
  33. 33. MANAGEMENT, PROBLEM SOLVING & SYSTEMS - TODAY On this dimension we are measuring the satisfaction levels with: •  managing and resourcing current processes and business practices •  effectively performing the everyday job of An image that represents the supply chain, satisfying the needs of staff and customers. ordering systems, delivery and customer service _ not cheesy though Low levels of satisfaction here are also visible through: •  Poor customer service •  Inefficient management of inventory / activity   ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 34 Author: Dr. Colin Benjamin . All rights reserved in all media
  34. 34. MANAGEMENT, PROBLEM SOLVING & SYSTEMS - TODAY As you can see the levels of satisfaction on this dimension vary greatly by channel: With low levels of satisfaction you can expect: •  Discontented customers and staff •  Poor execution capability in the area of stock Insert management and promotional support. The Implication for the supplier is a greater requirement of effort around ranging, supply, payment and promotional execution. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 35 Author: Dr. Colin Benjamin . All rights reserved in all media
  35. 35. MANAGEMENT, PROBLEM SOLVING & SYSTEMS - TODAY Consistently for those dissatisfied customers Problem Solving came up as the largest performance issue, sighting an inability for these businesses to make decisions about both problems and opportunities. http://www.dreamstime.com/ stock-image-clock-mechanism- Furthermore many of these business found the image4203641 planning, direction and controls within their businesses to be lacking. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 36 Author: Dr. Colin Benjamin . All rights reserved in all media
  36. 36. MANAGEMENT, PROBLEM SOLVING & SYSTEMS - TODAY The implication for Suppliers here is that the greater the satisfaction of the customer on this dimension, the greater their ability will be to : •  Make commitments to new propositions •  Adapt to New ways of doing things •  Quickly activate new activity Insert •  Manage Supply and customer needs •  Represent brands and messages favorably Low levels of satisfaction here have significant implications for return on effort. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 37 Author: Dr. Colin Benjamin . All rights reserved in all media
  37. 37. LEADERSHIP, OPPORTUNITIES & STRATEGY - TOMORROW On this dimension we are measuring the satisfaction levels with: Four Quadrant Model •  Business Development Capability •  Consistency of offer An image that depicts the vision in action – Low levels of satisfaction here are also visible the art of the breakthrough and the breakaway moment from competitors through: •  Ineffective marketing •  Poor price and margin management •  Chopping and changing sources of supply ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 38 Author: Dr. Colin Benjamin . All rights reserved in all media
  38. 38. LEADERSHIP, OPPORTUNITIES & STRATEGY - TOMORROW As you can see the levels of satisfaction on this dimension again vary greatly : With low levels of satisfaction you can expect: •  Under-resourced sales & marketing effort •  Low to moderate levels of revenue growth CHART •  Inconsistent decision making on product. The Implication for the supplier is a greater level of reliance on the supplier to grow the business for them. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 39 Author: Dr. Colin Benjamin . All rights reserved in all media
  39. 39. LEADERSHIP, OPPORTUNITIES & STRATEGY - TOMORROW In the Functions and Venue channel a key driver of dissatisfaction was strategy, clearly defining a direction for the business. On the other hand the “Other Retail” channel was driven by a lack of process to encourage Same image as before innovation and business development. Accommodation had an unhealthy balance of those two driving their result. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 40 Author: Dr. Colin Benjamin . All rights reserved in all media
  40. 40. LEADERSHIP, OPPORTUNITIES & STRATEGY - TOMORROW The implication for Suppliers here is that the greater the satisfaction of the customer on this dimension, the greater their ability will be to : •  Drive revenue growth opportunities •  Be open to and adopt new ideas from suppliers CHART •  Deliver a consistent offer •  Protect their identity over supplier brands Low levels of satisfaction here have significant implications for sales & margin growth. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 41 Author: Dr. Colin Benjamin . All rights reserved in all media
  41. 41. STAFFING, SKILLS & PRIORITIES - INTERNAL On this dimension we are measuring the satisfaction levels with: Four Quadrant Model •  Capability and Capacity •  Getting the right things right Image of busy people running around but Low levels of satisfaction here are also visible clearly working as a team – again not cheesy through: •  Poor product knowledge •  Poor venue / outlet presentation •  A lack of focus on brands being sold. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 42 Author: Dr. Colin Benjamin . All rights reserved in all media
  42. 42. STAFFING, SKILLS & PRIORITIES - INTERNAL Consistently most customers surveyed were, to varying degrees, unhappy with this dimension of their business: With low levels of satisfaction you can expect: •  Inconsistency in customer service CHART •  Issues with staff training & compliance to range and promotional activity. The Implication for the supplier is a greater need to measure compliance and invest in training staff with relevant product knowledge. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 43 Author: Dr. Colin Benjamin . All rights reserved in all media
  43. 43. STAFFING, SKILLS & PRIORITIES - INTERNAL Wine Specialists are a stand out on this dimension with large levels of dissatisfaction. In their case this is being primarily driven by a lack of necessary skills in their businesses. In their own judgment this is below the expectations of customers. This too is an issue for Image Bars Same image and Functions/Venues channels. All other channels measuring as dissatisfied on this dimension shared the view that staffing levels, retention and skill levels were equally to blame for business performance. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 44 Author: Dr. Colin Benjamin . All rights reserved in all media
  44. 44. STAFFING, SKILLS & PRIORITIES - INTERNAL The implication for Suppliers is the ability to prioritize those customers that will generate adequate returns to justify increased investments in the area of product training. Further customer issues with regard to staff CHART levels and staff retention should be key considerations before such investments. The clear risk is an over-investment against the sales opportunity. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 45 Author: Dr. Colin Benjamin . All rights reserved in all media
  45. 45. CUSTOMERS, STAKEHOLDERS & TACTICS - EXTERNAL The measure here is the satisfaction levels with: •  Guidelines, direction and processes for Four Quadrant Model customer service and resolving customer issues •  The businesses capability in delivering profit returns for its owners and suppliers An image that portays the front libne of the •  Capacity to adapt quickly to change organization – and in this context probably a happy liquor retailer handing over a box to a customer Low levels of satisfaction here are also visible through: •  A lack of enthusiasm for the customer •  Inability to collaborate well with suppliers ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 46 Author: Dr. Colin Benjamin . All rights reserved in all media
  46. 46. CUSTOMERS, STAKEHOLDERS & TACTICS - EXTERNAL Consistently most customers surveyed were satisfied with their capability in this dimension. Customer and Partner management for most seems to be a level they believe their businesses to perform well in. CHART With low levels of satisfaction you can expect: •  Very transactional purchasing conversations and relationships •  Poor levels of staff empowerment n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 47 Author: Dr. Colin Benjamin . All rights reserved in all media
  47. 47. CUSTOMERS, STAKEHOLDERS & TACTICS - EXTERNAL Casinos clearly have an issue with this area of their business , most sighting a lack of direction and processes for resolving customer issues. Functions/Venues and Image Bars channels alternately had consistent issues around the area Same image of forming and developing profitable partnerships. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 48 Author: Dr. Colin Benjamin . All rights reserved in all media
  48. 48. CUSTOMERS, STAKEHOLDERS & TACTICS - EXTERNAL The implication for Suppliers, in this instance is more the ability to isolate high levels of satisfaction. In doing so, longer term growth plans can be agreed and managed collaboratively. CHART For these customers, the risk, is employing the hooks or lures of an offer, instead of more open and direct dialogue (WIIFU), or in other words keeping it simple. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 49 Author: Dr. Colin Benjamin . All rights reserved in all media
  49. 49. ON-PREMISE The primary issues for the On-Premise trade surveyed, centre around: •  Ineffective stakeholder / supplier management •  Inadequate Staffing & Retention •  The need for better prioritization of effort Insert The key areas of strength are seen as coming up with new ideas and having effective systems for serving customer needs. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 50 Author: Dr. Colin Benjamin . All rights reserved in all media
  50. 50. OFF-PREMISE The primary issues for the Off-Premise trade surveyed, centre around: •  Ineffective stakeholder / supplier management •  People, Skills and Knowledge •  Clear direction and execution of that direction Insert The key areas of strength are seen as having effective systems for serving customer needs and having a capability to deliver plans that deliver the goals of the business. n = 334 ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 51 Author: Dr. Colin Benjamin . All rights reserved in all media
  51. 51. OUR WORKING EXAMPLE – RESTAURANT CHANNEL •  Remembering the dominance of thinking in Restaurants (Discoverers), you could expect more focus on the Tomorrow and External dimensions of the business. • With that in Mind, and despite a tendency for their to be a focus in process from Deal Makers, this channel wide dissatisfaction, sets a new ground rule: •  The difficulty for suppliers to get “air time” & return on effort. •  Delays in decision making on new opportunities / products •  The opportunity for the supplier to grow through turn-key solutions / activity ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 52 Author: Dr. Colin Benjamin . All rights reserved in all media
  52. 52. OVERALL SATISFACTION The perception of performance across the four dimensions we have explored vary greatly by customer and channel. Understanding these issues and equally the strengths of the customer are critical to Vertical blind of all 4 images generating greater returns from both sales and marketing efforts. The reality of this perception, is the daily field sales reality. Better returns are there for those that adapt. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 53 Author: Dr. Colin Benjamin . All rights reserved in all media
  53. 53. OVERALL SATISFACTION BY CHANNEL Vertical blind of all 4 images ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 54 Author: Dr. Colin Benjamin . All rights reserved in all media
  54. 54. WORKING WITH PERFORMANCE ISSUES Management, Problem Solving & Systems •  Avoid effort around new propositions •  Lower expectations on ranging & compliance Leadership, Opportunities and Strategy •  Protect your brand identity & exposure •  Help solve the inconsistencies of the offer 4 images vertical blinds again Staffing, Skills and Priorities •  Work selectively on increasing product knowledge •  Drive simple , low involvement executions Customers, Stakeholders and Tactics •  Be very selective about growth partnering •  Focus on the supply of everyday brands ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 55 Author: Dr. Colin Benjamin . All rights reserved in all media
  55. 55. KEY INSIGHTS AND IMPLICATIONS Understanding the way our customers think, their expectations and where they think their business can improve, provides critical pathways for anticipating the most effective strategies and tactics for customer growth. Image of rubber hitting the road This enables us to develop more effective: •  Channel strategies / plans •  Product launch executions •  Promotional targeting •  Customer communications ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 56 Author: Dr. Colin Benjamin . All rights reserved in all media
  56. 56. OUR WORKING EXAMPLE – RESTAURANT CHANNEL The ability to segment activity and focus will increase yield from the channel. Getting the balance right between those who are: •  Trying to differentiate (Discoverers) •  Driving drive bottom line performance (Deal Makers) AND Further, leveraging the channel “filter”, of Making it easy to execute, order and manage – accommodating “Management” deficiencies. Is the Formula for success – WHY? The customer thinks so! ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 57 Author: Dr. Colin Benjamin . All rights reserved in all media
  57. 57. WHAT HAVE WE LEARNT & WHAT DO I DO NOW •  At an outlet level, there are 3 main ways of customer thinking. •  By segmenting the market this way you can more effectively anticipate your customers expectations. •  By ensuring channel plans target these Vertical blinds of all three market pictures expectations you can more effectively deploy resources •  By aligning communications, promotions and product offers more closely with the customer expectation, you can significantly improve your “return on effort” ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 58 Author: Dr. Colin Benjamin . All rights reserved in all media
  58. 58. WHAT HAVE WE LEARNT & WHAT DO I DO NOW •  Satisfaction with business performance varies by customer and by channel •  The performance issues of your customer can significantly impact your sales. •  By understanding these issues you can align your effort with your customers strengths and Vertical blind of all 4 images possibly ease the burden of their weaknesses •  Planning your engagement with the customers business issues in mind, will result in a more effective use of resources and again, more “return on effort”. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 59 Author: Dr. Colin Benjamin . All rights reserved in all media
  59. 59. NEXT STEPS The next level of reporting provides: •  Channel specific customer strategy & actions •  Clear and detailed instructions on tailoring offers to different customer Mindsets •  Effective negotiating tactics by customer Image of literally someone taking the first Mindset step from maybe a line of people •  The critical business elements that are driving performance for customers and channels •  Clear examples on how to build the business relationship by working with the strengths of your customers business. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 60 Author: Dr. Colin Benjamin . All rights reserved in all media
  60. 60. FUTURE STEPS •  Going forward the application of these measurements against the Mirror Programme this year and the inclusion of Major Retailers to this survey component next year, will increase the insights and utilities from this part of the Feedback Programme Image of literally someone taking the first •  Further, the possibility of providing Industry step from maybe a line of people Feedback by Customer Segment is a valuable next step. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 61 Author: Dr. Colin Benjamin . All rights reserved in all media
  61. 61. SHAMELESS PLUG – OTHER ENGAGEMENTS SAYING & SELLING THE RIGHT THINGS IN THE RIGHT PLACES Consumer Demand Analysis & Forecasting •  Identify Distribution & Ranging Opportunities •  Target Trade Promotions •  Tailor Brand Marketing Campaigns / Communications •  Drive ROI from Sales & Marketing efforts Image of literally someone taking the first step from maybe a line of people REMOVING ROADBLOCKS Business Performance Surveys •  Objectively identify areas of the business that require action •  Prioritize those actions for the greatest overall impact on results. ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 62 Author: Dr. Colin Benjamin . All rights reserved in all media
  62. 62. SHAMELESS PLUG – EXTENDED VERSION Identifying distribution and ranging opportunities Analysis of existing sales Isolated performance gaps & distribution by Customer Customer priority & clear execution imperatives Confidential Confidential ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 63 Author: Dr. Colin Benjamin . All rights reserved in all media
  63. 63. THANK YOU!!! Scott McLaughlin Clutch C/- Next Reality Group Level 15, 461 Bourke St Melbourne 03 9604 8489 0407 200 970 scott.mclaughlin@clutch.com.au ColourGrid® Applications & Systems ©2003-2009 XAX Pty Ltd ColourGrid® ©2003 Intellectual Property Holdings Pty Ltd www.clutch.com.au ©2009 Clutch Pty Ltd 64 Author: Dr. Colin Benjamin . All rights reserved in all media

×