Competitive EDGE Strategy

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The document discusses how to measure and improve a company's "competitive advantage" or Competitive EDGE over competitors. It introduces the Net EDGE Score (NES) as a way to predict future profit premiums over next best competitors. The NES is calculated based on customer feedback about a company's overall value relative to alternatives. Improving the five "E's" (essential, exceptional, evidence, experience, evolution) can strengthen a company's Competitive EDGE. Metrics like the NES, customer retention, and cross-sell rates should be used to measure marketing success and competitive position.

Marketing

How to gauge your future profit
with your Net EDGE Score (NES)
www.NetEDGEScore.com
© 2014 Andrew Horton

Where will your profit
be in 3-5 years?
© 2014 Andrew Horton

It depends on Warren
Buffet’s #1 success driver
© 2014 Andrew Horton

Competitive advantage
© 2014 Andrew Horton

Most companies
only have an
internal lens on
their competitive
advantage
© 2014 Andrew Horton
Source: BusinessSetFree.com

How do you add a
customer centric lens?
© 2014 Andrew Horton

Competitive EDGE
Strategy
© 2014 Andrew Horton

Your Competitive EDGE
NPV [ your total value / your total cost ]
– NPV [ NBC* total value / NBC* total cost ]
* Next best competitor
© 2014 Andrew Horton

How do you know if you
have Competitive EDGE?
Current profit premium
Future profit premium
© 2014 Andrew Horton

Your current profit premium
Average 5 year profit
NBC’s average 5 year profit
© 2014 Andrew Horton

Your future profit premium
Predict it with your
Net EDGE Score (NES)
© 2014 Andrew Horton

Ask individuals one question
“On a scale from 0-10, to what extent
do you feel ABC Inc. provides better
overall value for cost than the next best
alternative?”
© 2014 Andrew Horton

How to calculate your NES Score
Building on the Net Promoter Score and popular Top 2
minus bottom 2 box polling:
% in 9-10 group - % in 0-5 group
© 2014 Andrew Horton

The 5 E’s of Competitive EDGE
1. Essential
2. Exceptional
3. Evidence
4. Experience
5. Evolution
© 2014 Andrew Horton

Mass
Marketing
Fixed message
from marketer
broadcast
through mass
ads and mass
media
Personalized
Marketing
Responsive
message pushed
and pulled from
marketer to
individuals (i.e.
PPC, Nurture)
1st Generation
One to Many
Community
Marketing
Variable message
controlled in real-time
social media,
not by marketer.
Push, pull and
combine. SOLOMO
(social, local,
mobile) and big-data
more relevant
than ever.
2nd Generation
One to One
3rd Generation
Many to Many
4th Generation
Many and One to One
Embedded
Marketing
Personalized,
community marketing
matching needs and
offers interaction by
interaction.
The next generation of marketing
© 2014 Andrew Horton

The economics driving Competitive EDGE
© 2014 Andrew Horton

Why NPS isn’t enough
© 2014 Andrew Horton

The Competitive EDGE customer lifecycle
© 2014 Andrew Horton

The 4 stages of Competitive EDGE
© 2014 Andrew Horton

The Competitive EDGE Problem / Solution BoxTM
© 2014 Andrew Horton

The Competitive EDGE marketing mix
© 2014 Andrew Horton

Sparking Competitive EDGE
© 2014 Andrew Horton

Building Competitive EDGE
© 2014 Andrew Horton

Competitive EDGE marketing best practices in 10 steps
1. Establish your Competitive EDGE
2. Set success metrics
3. Establish thought leadership topics and positions that align to your Competitive EDGE
4. Generate content that aligns to your thought leadership
5. Contribute to related influencer thought leadership discussions (reciprocity)
6. Make your content available for consumption and sharing and track engagements
7. Reengage through a nurture stream of content and people interactions relevant to stage in
buying cycle
8. Measure results
9. Optimize all elements 1-8
10. Convey results to broader leadership to reinforce Competitive EDGE
© 2014 Andrew Horton

Communicating Your Competitive EDGE
5 E’s Related Element of SUCCES
Essentials Simple
Exceptionals Unexpected
Evidence Credible and Concrete
Experience Emotional and Stories
Evolution
The Humphry Group Leadership ModelTM
 Grabber Subject
 Message
 Structural Statement
 Supporting Point 1
 Supporting Point 2
 Supporting Point 3
 Related Message
 Call to Action
Made-to-StickTM
© 2014 Andrew Horton

Measuring Success
With the C-Suite
• Enterprise funnel in $ (by stage)
• Revenue cycle length
• Net EDGE Score (NES)
• Net Promoter Score (NPS)
• Cross-sell rate
• Number of influencer mentions
• Retention rate
• Revenue per marketing dollar
invested
• New product take-up rate
With Sales
• Number of qualified leads
• Number of wins
• Revenue per win
• Cross-sell ratio
• Number of case studies and testimonials
For Marketing
• Number of qualified leads
• Cost per lead
• Conversion rate
• All of the C-Suite and Sales metrics
© 2014 Andrew Horton

www.NetEDGEScore.com
© 2014 Andrew Horton

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Competitive EDGE Strategy

17. Mass Marketing Fixed message from marketer broadcast through mass ads and mass media Personalized Marketing Responsive message pushed and pulled from marketer to individuals (i.e. PPC, Nurture) 1st Generation One to Many Community Marketing Variable message controlled in real-time social media, not by marketer. Push, pull and combine. SOLOMO (social, local, mobile) and big-data more relevant than ever. 2nd Generation One to One 3rd Generation Many to Many 4th Generation Many and One to One Embedded Marketing Personalized, community marketing matching needs and offers interaction by interaction. The next generation of marketing © 2014 Andrew Horton

26. Competitive EDGE marketing best practices in 10 steps 1. Establish your Competitive EDGE 2. Set success metrics 3. Establish thought leadership topics and positions that align to your Competitive EDGE 4. Generate content that aligns to your thought leadership 5. Contribute to related influencer thought leadership discussions (reciprocity) 6. Make your content available for consumption and sharing and track engagements 7. Reengage through a nurture stream of content and people interactions relevant to stage in buying cycle 8. Measure results 9. Optimize all elements 1-8 10. Convey results to broader leadership to reinforce Competitive EDGE © 2014 Andrew Horton

27. Communicating Your Competitive EDGE 5 E’s Related Element of SUCCES Essentials Simple Exceptionals Unexpected Evidence Credible and Concrete Experience Emotional and Stories Evolution The Humphry Group Leadership ModelTM  Grabber Subject  Message  Structural Statement  Supporting Point 1  Supporting Point 2  Supporting Point 3  Related Message  Call to Action Made-to-StickTM © 2014 Andrew Horton

28. Measuring Success With the C-Suite • Enterprise funnel in $ (by stage) • Revenue cycle length • Net EDGE Score (NES) • Net Promoter Score (NPS) • Cross-sell rate • Number of influencer mentions • Retention rate • Revenue per marketing dollar invested • New product take-up rate With Sales • Number of qualified leads • Number of wins • Revenue per win • Cross-sell ratio • Number of case studies and testimonials For Marketing • Number of qualified leads • Cost per lead • Conversion rate • All of the C-Suite and Sales metrics © 2014 Andrew Horton

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Competitive EDGE Strategy