from customer insight to business growth
DESCRIPTION
Improve competitive strength through market intelligence. On Friday 20 September at 09:00 – 12:00, Implement Consulting Group had gathered more than 30 commercial managers to an event focusing on proactive use of market intelligence. Ditte-Maria Heide Kristensen, Head of Business Development in Danske Spil introduced the background and the thinking behind the latest business development initiatives based on true customer insight. Danske Spil went from true monopoly to fierce competition in January 2012 by the liberalisation of the gaming market in Denmark. But despite the fact that the liberalised part of Danske Spil now had to compete against strong international players in new product areas, Danske Spil has grown substantially.TRANSCRIPT
From customer insight to business growth
ComEx
2013 – Commercial Excellence Forum
Why and how to transform customer insight into action
2
Commercial Excellence Forum
Planned Meetings in 2013
January 18, 2013
Segmentation and Go-to-Market strategy
May 24, 2013
How to create unique value proposition and
successful differentiation
September 20, 2013
From customer insights to business growth
November 15, 2013
Pipeline Management & CRM
3
Agenda
Welcome & Introduction
From customer insight to business growth
Case: Danske Licens Spil – Grow the business with strong customer insight
How do you ensure proactive use of customer insight?
Exercise in groups : How can you grow your business based on customer insight?
Summing up the Commercial Excellence Forum event
4
What does it take to drive topline growth?
Competence?
Experience?
Luck?
Customer Insight -can be turned into magic!
?
5
Topline growth is a customer issue
The company is the owner of the cost
structure in a company…
The customer is the owner of the future
revenue.
That is why understanding customer needs
and building customer insight has to be the
focal point for developing any business…
5
6
Classic Dilemma 1#
- what is the right insight to generate growth?
Earning Benefit
Outside-in growth thinking
True value
innovation
”We are in the market of fulfilling needs
– not selling products!
Mr. and Mrs. Right
7
Classic Dilemma # 2
- How to align company perspective with the customer?
Value adding services in a full (customer) perspective
Growth generators often appear outside the existing market definition
Customer insight should not be confused with customer journey insight or touch point insight – it is much broader.
Differentiation – and willingness to buy – is very often found outside the traditional value chain…
Web suppliers’ value chain
Transportaion Go to
Stores’ value chain
Shopping Inspire
Consumers value chain
Channel Consume Waste / budget Planning
Customer value chain is underestimated as key to growth
8
Company vs. Customer value chain…
Danske Bank - tanker til inspiration
Savings and
investment
Net banking -
transactions
Property
financing
Mobile banking -
overview
Daily contact Loan / cash
Pension – securing
‘old age’
Su
pp
lier
Valu
e C
hain
Cu
sto
me
rs a
dd
va
lue t
o th
e b
an
k
The value chain in
a 360º perspective
Sparring partner
Gathering the
family’s ecoonomy
‘Education’ in creating
an economic profit Comfort and
security
Lifeline (available)
Securing the future
(proactive planning)
Help to self-help
Freedom of
consumption
24/7 service
Cu
sto
me
r Va
lue
Ch
ain
The
ban
k a
dd
va
lue to
the c
usto
me
r
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The key is to think outside-in
Outside Company focus In
Bonds Drivers Motivations
33
The process of implementation starts with the customer and ends
with the customer…
34
Customer insight as a game changer in the business development
- Guiding principles
Transform insight into a action
Broaden the perspective beyond existing market definition by looking at how customers react today in the market
Understand the underlying needs and validate in large scale to reduce risk in business development
Define quick wins, projects and transform into strong go to market approach
35
#1
-Topline growth is about meeting the right customer needs…
Developing new break-through ideas is all about
matching a product attribute with a customer need
in order for it to transform into a strong consumer
benefit…
A need is like a coat rack. It is ‘the carrier’ of a
product (feature). If a product (feature) does not
fit, it falls to the ground…
35
36
#2
Needs are a motivator – not a solution
A need is not the same as a solution:
• People has no need for an internet bank. They have a need to access their money
when ever and how ever
The need is the fundament of any successful innovation:
• A product becomes a success BECAUSE there is a need for the product.
A need may not follow the definition of a market:
• Customers do not think in branches and businesses
• Their needs are typically evolving by mixing experiences together.
37
#3
Choose the right research method
Do’s
Qualitative research methods reveal the underlying motives
Qualitative techniques are matched to the market dynamics
Dont’s
• Qualitative research is not suited for final decisions and ready-made
solutions to be implemented
Do’s
Qualitative findings can be validated in a strong choice test
The research should be based on disclosure of needs formulated as positive
benefit statements.
Don’t’s
• Conjoint tests is not suited for mapping needs and many variables
A strong research method is a fundament
for reducing risk in decisions making
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#4
Give the customers’ voice sufficient focus and priority
PART 2: PERFORMANCE PART 3: BACKGROUND PART 1: IMPORTANCE
Ranking of customer benefits by
disclosing the least important needs
(found in the qualitative process)
Reveals the customers’
preference and how well a
product category is perceived
Identify the customers’ views on
needs fulfillment
Maps the customers’ needs
structures
Using importance module together
with back ground information
Profiling segments based on
their needs
Accept a survey to be comprehensive.
The more details the better decisions
39
#5
Prioritize ideas after customer impact
Quick wins are often ideas that haven’t
been communicated sufficiently
Customer
Impact
Ability to implement
High Low
High
Projects Quick wins
Walk away Wait for now
40
#6
Markets standards should meet the needs in the market
Performance
Most important Less important
Low
High
Importance of needs
INCREASE PERFORMANCE ON MOST IMPORTANT NEEDS
… BY REDUCING FOCUS ON LESS IMPORTANT NEEDS
Implementation plan focus on leverage
and increasing performance perception
41
Discuss in groups…
• From business insight to action:
What are the 3-5 main barriers in your
company to exploit all the business insight
you have about customers needs. Discuss
and write down 3-5 barriers each on yellow
cards.
• Overcome the barriers:
Discuss how to overcome the barriers –
please challenge each other and write your
ideas on green cards.
Exercise
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Exercise: Main barriers and how to overcome these
The identified barriers
• CEO need to believe in customer insight
• Quantify the insight value vs. ”traditionel” excel business cases
• Too little insight about the end user
• Perception vs facts
• To gather real insights cross silo´s
• Thinking the 360 perspective
• To get the organization to act upon the insight
• The resistance towards change
• IT systems
• Lack of knowledge as regards the total value chain
• Harder to change existing proiduct/service areas as new ones
• Transfer of insights to real specific value
• Complex buying center – many stakeholders
• Risk aversion
• The real understanding of customers customer
• Internal competencies
• Information overload
• Strong culture
• Do we ask the customers in the right way ?
• Wrong customer segmentation
How to overcome the identified barriers
• Create organisational structures – se leadership model
• Insights and customer promises on segment level – not ”one
size fits all”
• Create local ambassadors
• Holistic plan & execution
• Focus on the burning platform
• Commitment in top management
• Create mini-projects
• Use cases as ”proof of concept” – show the value
• Use reference stories
• Balance between tailor-made products and the internal
procedures
• Focus on the value drivers of the customers
• Specification of customer oriented activities cross functions
• Measure and management follow up
• New capabilities and create the right team
• Cross functional involvement in all customer oriented changes
• Stress the burning platform or explain ”what´s in it for me”
• Focus on long-term activities
43
Commercial Excellence Forum
Planned Meetings in 2013
January 18, 2013
Segmentation and Go-to-Market strategy
May 24, 2013
How to create unique value proposition and
successful differentiation
September 20, 2013
From customer insights to business growth
November 15, 2013
Pipeline Management & CRM
Contacting Implement Consulting Group
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