j501-abc electronics-final presentation

10/16/2016 Developing strategic capabilities – J501 project 1

J501 – Developing Strategic Capabilities

Pragnya Balamurukesan

Armaan Choudhary

Rishikesh Muchhala

Prajakta Patil

Project presentation for a local electronics repair store (ABC electronics)**Name changed to protect client’s identity

Agenda


Introduction

Recommendations

Timeline

Appendix

Risks and mitigation strategies

Next Steps

Our understanding


ABC electronics operates in the

electronics repair industry and has

resumed operations in January 2016

ABC needs to re-establish the

relationships with past retailers and

partners to increase their consumer

outreach and sales

What sales and marketing strategy can ABC adopt to

exceed a conversion rate (by sales) of 1.4% (industry

standard)?

A three pronged sales and marketing strategy will help ABC Electronics achieve the desired growth


Exceed a conversion rate of 1.4 % (industry standard)

Convey a strong value proposition by using a content marketing strategy and improving online presence through SEO

ABC Electronics Sales and Marketing Strategy

Build stronger relationships through a sales team to increase responsiveness of leads and get referrals

Assess gaps in the services being provided to current customers to evaluate current performance

Source: https://www.klipfolio.com/resources/kpi-examples/digital-marketing/online-conversions-metric

Convey value proposition through a strong digital media presence


Incorporate a documented content marketing strategy to articulate and refine PTS’s value

proposition

Creating content Delivering content

Content marketing Value proposition

Reduced sales budgetReduced sales cycle Higher conversion rate

Webpages: TestimonialsWebpages: Case studiesSearch Engine Optimization

Content planning and content promotion can help you leverage the incredible power and longevity of content

marketing and SEO

Source: http://searchengineland.com/content-marketing-seo-bigger-picture-219796

Industry research shows using content marketing can increase conversion rate by 6 times


“When content marketing adopters and non-adopters are compared, the adopters have conversion rates that are nearly six times higher than their competitors”-Content Marketing Institute

Source: 2016 B2B Content Marketing Trends—North America: Content Marketing Institute/MarketingProfs

“72% of marketers worldwide said relevant content creation was the most effective SEO tactic ”- MarketingProfs

48%

32%

16%

4%

Percentage of B2B Marketers WhoHave a Content Marketing Strategy

Yes, but it is not documented

Yes, and it is documented

No

Unsure

0% 5% 10% 15% 20% 25% 30% 35% 40%

Extremely Valuable

Very Valuable

Somewhat Valuable

Not Very Valuable

Not At All ValuableHow B2B MarketersPerceive the Value of Internal Content Marketing Meetings

54%Say Meetings are Valuable

SEO increases percentage leads converted to sales in B2B marketing by 10%


16%

11%

9% 9%

6% 6%

5%

4%

13%

11%

7%

15%

7%

10%

8%

9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Time Allocation Above - Average Sales Conversion

ABC electronics - Big Commerce marketing dashboard SEO improvement - Percentage leads converted to sales

Direct SearchSearch

optimizedReferrer Subdomain Social

Gross revenue $144,448.73 $73,633.90 $593,821.77 $48,425.70 $3,577.68 $300.46

Conversion rate 2.28% 1.24% 10.00% 7.58% 2.66% 1.80%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

Projected

Source: http://www.business2community.com/content-marketing/content-marketing-worth-investment-0820523#WOGtJqcKhLYS04bi.97Source : ABC electronics – Big Commerce marketing dashboard

Employing a sales representative will enhance customer relationships and response rate


• Prospecting• Meeting with prospects and customers• Meeting follow ups• Response to proposals• Create and send quotes/ contracts• Keep a continuous sales pipeline & generate leads• Trend and competitor analysis• Account planning/ upselling opportunities

• Expense Reports• Administrative requests/ in office tasks• Customer service requests by customers• Post-Sales Requests• Sending collateral to prospects• Set up and tear down at trade show events• Understand and research product know how• Schedule meetings and update executives

Increased delegation of selling function so top level management can focus on operation efficiency and

maintain current relationship

Increased personal touch as a part of PTS’s go to market strategy. Increased brand awareness in the market

“ABC values personal touch in

business and envisions maintaining long term

term relationships with all our partners. ABC plans on

meeting clients to understand their needs and serve them

in the best way possible”

Co

re S

elli

ng

Fun

ctio

ns

No

n C

ore

Se

llin

g

Benefits realized

Source: https://www.fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/

Message conveyed

Customized marketing by a sales representative will increase ABC Electronics’ revenue by $519,630


75%

66%

65%

63%

62%

61%

60%

59%

0% 20% 40% 60% 80%

In person Events

Webminars

Case stdudies

Whitepapers

Videos

Research Reports

eNewsletters

BlogsKey revenue generation sources

• Acquiring new customers• Upselling/Increasing revenue from existing

customers• Different customer segments include:

Big RetailersDealersLocal Repair Shops

$49,500.00

$154,000.00

$77,000.00

54%31%

15%

Reducing customer

churn

Acquiring new

customers

Upselling to existing

customers

Small shops

Brand dealers

Big retailers

Effectiveness Ratings for B2B Tactics

Indiana: Market at a

glance• 3.3 Million TV Homes

• About 109 Big Retailers

• About 370 Small repair shops

• About 278 Brand Dealers

Source: https://www.fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/Source: http://www.ptselectronicsinc.com/


Source: https://www.b2binternational.com/themes/customer-satisfaction-publications/Source: http://marketeer.kapost.com/customer-experience-marketing-stats/Source: https://blog.optimizely.com/2015/10/07/online-surveys/Source: https://www.marketingsherpa.com/article/case-study/b2b-survey-program-brand-advocates

Administer customer surveys to understand gaps in services and increase customer engagement

Financial BenefitsCustomer Surveys

Know what your customers want before

investing in content marketing

Learn about what your customers -• are concerned about (fears)• are curious to know• are seeking solutions for (problems)• are dreaming about having (desire)

Benefits• Increased customer loyalty• Increased brand awareness and

engagement• Increased market share• First-hand feedback from customers will

help ABC analyze current state and fill gaps proactively

Just a 5% reduction in the customer defection rate can increase profits by 25% to 85%, depending on the industry

Studies reveal that customer engagements provide a competitive advantage, in some cases doubling sales year over year

Diligently administered surveys can increase conversion rate from 12% to 30%, depending on the industry

Gain insights to determine a brand message that resonates with customers

10/16/2016 Developing strategic capabilities – J501 project 11Source: http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-b2b-companies-talk-past-their-customersSource: http://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/

“Customers who are fully engaged represent 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer : sales pass, loyalty stays - potentially - forever.”-Neosperience

“In 2016, 89% of companies expect to compete mostly on the basis of customer experience, versus 36% four years ago”-Gartner

Cares about honest, open dialogue

Acts responsibly across its supply chain

Has a high level of specialist expertise

Fits in well with my value and beleifs

Is a leader in its field

Brand theme

Top global B2B companies' stated affiliation with theme, %

Theme's contribution to perceived brand strength, %

Correlation Ranking

0

0

0

36

4

15

11

10

16

17

Source: McKinsey Quarterly

“Three questions whose answers may point to opportunities for improvement :• Are you telling the same story as your competitors?• Does your sales force say it is facing headwinds?• Do you deliver your brand in a consistent way?”

ABC can implement a strong marketing plan in 11 months

10/16/2016

12

Planning

Execution

Testing

Built-in lag time

Month 1 -2 Month 3-4 Month 4-5 Month 5-6 Month 7-8 Month 9-10 Month 11

Articulate strategy

Hire sales representative

Customer survey and requirements

Content marketing

Website enhancement (SEO)

Refine Target Customer group

In-person meetings/events

Critical success factors1. Stakeholder buy-in2. Change management3. Training and

documentation4. Motivated sales and

marketing team

Developing strategic capabilities – J501 project

Milestone

10/16/2016

Risks and mitigations

10/16/2016 Developing strategic capabilities – J501 project 13Source: http://blog.marketing.ai/3-key-risks-of-content-marketing/

Probability

Imp

act

Inherent risk profile

2. Results of surveys conducted to find out what target customers really need may result in too few facts or erroneous conclusions due to skewed customer demographics

3. Inconsistency in perception of brand within ABC due to content marketing strategy may lead to mis-delivery of message to customers and prospects

1. Loss of revenue due to incapacity to handle a heavy influx of business as a result of marketing

Monitoring effect of marketing to enable improved planning and forecasting, will allow ABC to plan for a large influx of business and build servicing capabilities

Incentivize all customer segments to actively participate in the survey, convey goals, objectives with them and share insights received.

Have a center of content and strategy that can serve both as one source of truth for the different teams, and at the same time connects to the different channels for drafting, approvals and publishing makes it much easier to verify alignment.

1

2

3

10/16/2016 14

An effective content marketing strategy that is executed effectively to convey a strong value proposition can help ABC re-establish their foothold in the repairs industry and exceed conversion rate (by sales) of 1.4% (industry standard)

Assess customer needs by investing in market research strategies

Convey value proposition through state of the art website

Acquire new customers and deepen existing relationships by incentivizing a salesperson to take in-person meetings


Implementing a marketing strategy will improve brand awareness and re-position ABC in the industry

10/16/2016 15

Appendix


Core and adjacency model

Customer engagement

Improving SEO ranking

Social media platforms

Considerations when hiring a sales representative

References

Hypothesis tree

Mapping growth opportunities using Bain’s Core and adjacency model


Core

Repair Television sets

Repair Desktops, Laptops, home appliances

Adjacency

“Too many companies leave money on the table in their core businesses. More than 80% of executives say they are not even close to achieving full potential in their core business.”-Bain & Co.

Define the core

Expand

Focus on building their core business to reach full potential

Take advantage of core capabilities to expand into adjacent markets

Renew company

strategy and capabilities

Source: Bain & Co.

Strategies for strengthening the core


Define the core

Expand

Goals for core1. Prevent customer churn2. Get more business from existing

customers3. Leverage existing relationships to

increase market outreach4. Reiterate and convey value

proposition

Gaps in core1. Consumer awareness2. Untapped opportunities

amongst existing customers

3. Building trust among new customers

4. Unclear value proposition

Improving SEO rankings


Google ranks a content based on 3 metrics1. Click through rate – Ratio of number of times a result was clicked v/s number of times it was displayed2. Dwell time – Time spent on clicked result webpage3. Pogo sticking – Frequency of users quickly clicking search results in succession

Improving number of clicks1. Identify pages with low click rate and prioritize improving them2. Improve titles and descriptions by meeting the technical requirements and making them more enticing for

users to click3. Implement rich snippets wherever possible, such as information about product, price and quality, so that

they are displayed within the search itself

Increase dwell time1. Create compelling content that is unique, credible and trustworthy written in a concise and polished manner2. Optimize speed and utility by improving load time, navigability and reducing ads and pop up’s3. Encourage visitors to explore your site by linking related content

Source: Aleh Barysevich (2016) “7+ Ways to Attract Searchers and Boost Your SEO Rankings”

Market research techniques and best practices


1. Market Description Surveys2. Market Profiling-Segmentation Surveys3. Stage in the Purchase Process / Tracking Surveys4. Customer Intention – Purchase Analysis Surveys5. Customer Attitudes and Expectations Surveys6. Customer Trust – Loyalty – Retention Analysis Surveys7. New Product Concept Analysis Surveys8. New Product Acceptance and Demand Surveys9. Habits and Uses Surveys10. Product Fulfillment Surveys11. Competitive Product and Market Positioning12. Brand Equity Surveys13. Advertising Value Identification and Analysis Surveys14. Advertising Media and Message Effectiveness Surveys15. Sales Force Effectiveness Surveys.16. Sales Lead Generation Surveys17. Customer Service Surveys18. Customer Service Representative (CSR) Surveys— Attitudes, Burnout,

Turnover, and Retention19. Sales Forecasting and Market Tracking Surveys20. Prices Setting Surveys and Elasticity of Demand Analysis

Types Of Marketing Researches Tips For Efficient Market Research

1. Keep the survey questions short – preferably yes/no based2. Determine the ideal frequency of these surveys based on your

customer engagement and industry standards. 3. Send them a thank you note with personalized message based on

their feedback4. Show them how you have worked on their feedback after a few

months5. Also create anonymous surveys for employees in order to take

into account their opinions and suggestions as well6. Typically, for B2B business models, the purchasing cycles are

longer. Hence seeing immediate results may not be possible7. When you’re part of a B2B market, you’re typically dealing with

complex purchase decisions, an overall smaller customer base, and heavily technical products. In such cases, it takes patience in approach to gather pertinent data

8. It takes 12 positive customer experiences to negate the poor impression left behind from one unresolved, bad experience

Social media platforms


66%

55%

51%

41%

30%

22%

0% 10% 20% 30% 40% 50% 60% 70%

LinkedIn

Twitter

Youtube

Slideshare

Facebook

Instagram

Effectiveness Ratings forB2B Social Media Platforms

Source: 2016 B2B Content Marketing Trends—North America: Content Marketing Institute/MarketingProfs

94

87

84

74

62

0 10 20 30 40 50 60 70 80 90 100

Linkedin

Twitter

Facebook

Youtube

Google+

B2B Content MarketingSocial Media Platform Usage

Hypothesis tree


How to increase

conversion rate by 1.4% using sales

and marketing?

Target Existing customers

New Clients

Re-acquiring old customers

Reiterate the breadth of services

Convey current performance and vision

Convey differentiation factors with regards to processes

Testimonials from existing customers

Convey list of services and offering

Convey special benefits for new customers

Convey updated list of offerings and list of services

Research about their current performance (what has changed in the past decade)

Reiterate the effectiveness / impact of past relationships

References


Convey value proposition through a strong digital media presence• http://searchengineland.com/content-marketing-seo-bigger-picture-219796Industry research shows using content marketing can increase conversion rate by 6 times• 2016 B2B Content Marketing Trends—North America: Content Marketing Institute/MarketingProfsSEO increases percentage leads converted to sales in B2B marketing• http://www.business2community.com/content-marketing/content-marketing-worth-investment-0820523#WOGtJqcKhLYS04bi.97• ABC electronics – Big Commerce marketing dashboardEmploying a sales representative will enhance customer relationships and response rate• https://www.fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/Customized marketing by a sales representative will increase ABC Electronics’ revenue by $519,630• https://www.fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/• http://www.ptselectronicsinc.com/Gain insights through customer engagement to determine a brand message that resonates with them• http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-b2b-companies-talk-past-their-customers• http://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/• https://blog.optimizely.com/2015/10/07/online-surveys/• https://www.marketingsherpa.com/article/case-study/b2b-survey-program-brand-advocatesAdminister customer surveys to understand gaps in services and increase customer engagement • https://www.b2binternational.com/themes/customer-satisfaction-publications/• http://marketeer.kapost.com/customer-experience-marketing-stats/Risks and mitigations• http://blog.marketing.ai/3-key-risks-of-content-marketing/

http://searchengineland.com/content-marketing-seo-bigger-picture-219796

http://www.business2community.com/content-marketing/content-marketing-worth-investment-0820523#WOGtJqcKhLYS04bi.97

https://www.fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/

https://www.fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/

http://www.ptselectronicsinc.com/

http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-b2b-companies-talk-past-their-customers

http://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/

https://blog.optimizely.com/2015/10/07/online-surveys/

https://www.marketingsherpa.com/article/case-study/b2b-survey-program-brand-advocates

https://www.b2binternational.com/themes/customer-satisfaction-publications/

http://marketeer.kapost.com/customer-experience-marketing-stats/

http://blog.marketing.ai/3-key-risks-of-content-marketing/

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