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, ELI-MP913-221-5214rokeith70@yahoo.comhttp://www.linkedin.com/in/rokeith/