Download - Roberta O'Keith Presentation
Taking Action on Research Insights – 2 Best Practice
ExamplesRoberta O’Keith
Marketing & Sales Strategy LeaderCXPA Board Member
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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
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
Air FiltrationStrategy• 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
Customer Insights Approach
Market Knowledge
Segmentation & Targeting
Value Creation
Go-To-Market ProcessGo-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
Market Knowledge
Segmentation & Targeting
Value Creation
Go-To-Market ProcessGo-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
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
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
Best Practice #1 – Customer
Segmentation Study
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
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)
1. Price2. Service & Tech
Support3. Sales Support &
Relationship4. Warranty/
Guarantees5. Delivery6. Product Features7. Productivity
Improvement8. Brand Rep/ Expert
Opinion
Identified 8 key purchase drivers
(in priority order of importance)
Purchase DriversWhat drives customers to buy
from suppliers like us?
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, quality,
technology)
Risk averse
“Do it for me”
Sales Support
Delivery
Expert Op / Brand
Convenience
*Key Characteristics
PerformanceHighly technical
Seek innovation
Product Features
Productivity Impr.
*Major Influences
RelationshipImprove operation
Value technology
Svc & Tech Support
Expert Op / Brand
Warranty / Guarantee
PriceLowest price
Basic products
Price
Delivery
Emerging Segments
Business Segments
Segmentation Tools
Key Personas Within Each Business Segment
• Plant Managers• Chief Engineers• Project Manager• Sourcing Manager• AP Finance Manager• Operations Manager
Price BuyerConvenience
Buyer
Operations Manager
Plant Manager
Each with their own needs and purchasing behaviors….
Developing multi-level messaging for greatest impact Volkswagen Example
Safe & Reliable
Innovative, Sustainability, Reliability“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
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
Best Practice #2 – Business Operations
Survey
Best Practice #2 – Customer Expectations1. Needs Based Segmentation Research
2. Operational Business Survey
Sales Aids & Marketing ToolsMore Targeted Value PropositionsNPI SupportBusiness 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
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
Quality• Product• Service
Price• Influencer• Competitiveness
Customer Experience• Quote• Order• Delivery• Service• Technical Support• Billing/ Invoicing
Brand/ Reputation• Familiarity• Consideration
Survey Question Categories
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
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
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%
QualityDelivery
ResponsivenessROI
Tech SupportProduct Perf Guaranty
Supplier ReputationCustomer Service
Sales SupportQuote Cycle Time
Single Point of ContactLow Purchase Price
Web CapabilitiesFlexible Warranty Terms
Supplier used for a long timeLocal inventory
Very important Somewhat important Neither Somewhat unimportant Very unimportant
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 turnDelivery – 82% expect 2 weeks or lessCust Serv – 89% want answer in < 24 hrsTech Support – +30% want answer on the
phone
Price – 63% leave due to priceCust 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
Resulted In Actions: Business Metrics (OTD, Quote &
CS Responsiveness etc.)
Cost out = Competitiveness
Process Improvements
Product Quality Improvements
Survey Results and Actions
In Summary: Taking Insights into Action
Insights From:Market Research
Various VOCNPS Data
Performance MetricsBusiness Process Improvements
Corporate Priorities
= Overall Improved Customer Experience
Drives
Evidenced in 2012 by a 68% increase in TNPS score over ‘11
Thank you for having me!
Roberta O’Keith, MBA, CPC, [email protected]://www.linkedin.com/in/rokeith/