Winning Value Propositions
Achieving and sustaining customer preference in target segments in existing markets.
Customer needs-based segmentation is a critical element.
The most successful B2B organisations are experts at applying customer needs-based segmentation.
The results of a successful customer needs-based segmentation.
- Provision of services and experience, as well as product range, creating value for each specific customer segment.
- The sales team are able to keep competitors out without reducing the price.
- Resources are focused on the market share growth targets.
- Functions are engaged and aligned to meet the needs of the market place.
- Next generation differentiated offers are easy to envisage.
- Customers enjoy doing business with you and keep coming back.
Example 1
A materials business which had long enjoyed premium pricing was starting to feel competitive pressure from recent new entrants. Cross function teams identified needs-based segments. From these, they successfully transformed their go-to-market approach with clearly defined winning value propositions for each target segment. Increasingly automated offerings are now used with certain segments and the time and resources thus freed up are focused on the more important segments. The rigour of the process meant the conversation was based on real data. This aligned the key functions and ensured resources were focused where it mattered. The result was an uplift in sales in the targeted segments.
Example 2
The services business of a multinational capital equipment company whose revenue and customer satisfaction were in decline. Extracting insights from in-depth qualitative interviews the client identified customer needs-based segments for the first time in the company’s history. This was followed by the development of differentiated value propositions for each target customer segment. The company reversed the decline and generated a record number of orders within 12 months of implementation.
Example 3
A speciality materials business struggling to grow. They applied customer needs-based segmentation and discovered there was a much more attractive segment than the one they had been focusing their resources on. The customers in this ‘new’ segment had a much stronger need for their offer and were quick to switch from their current suppliers to solve their pain points.
Example 4
A business membership organisation whose numbers were static. They had been providing the same offer to all members and some were beginning to question whether the annual subscription was worth the money. They applied customer needs-based segmentation and realised that different customer groups wanted different benefits from their membership. Membership numbers started to improve when they tailored offers for different groups.
Contact us to explore how to add customer needs-based segmentation skills and benefits to your business.
