Aligning Market Insights & Trends to Customer Strategies & Priorities

Does Your Company Ever Grapple with how to answer the Following Questions related to the market you operate in and your customers?:

  1. What is the size of the potential pool of new customers and which are the best customers to acquire?

  2. Which customers are your most profitable and how do you get other customers to grow and become part of your top ( and most profitable) customer segment group?

  3. What is your current customer share of wallet (SOW) as compared to your competitors and what does driving small incremental increases in your customer SOW do to your overall revenue?

  4. What are the shifting attitudinal and behavior patterns of your customer market and how do you develop a strategy that ‘gets in front of’ these trends?

  5. What are the shifting customer demographics of your marketplace as well as the underlying shift in spending habits

  6. What are the changes in customer preferred marketing channels as well as trends that might impact customer loyalty strategy

Market Insights and Trends Drive Customer Strategy, Programs

Market Insights and Trends Drive Customer Strategy, Programs

 

The above charts illustrate why it is critically important to have clear and accurate insights into your new customer market potential/pool as well as the current customer base and their share of wallet.

The chart above (left side) details the trends for new customers by segment as compared to current customers.

The chart above (right side) illustrates which customers drive the current percentage of revenue in order to understand how customer priorities and strategy should be defined.

Critical Insights: Top Customer, Top Profitable Customers and Customer Share of Wallet vs. Competitors

Critical Insights: Top Customer, Top Profitable Customers and Customer Share of Wallet vs. Competitors

Market Spend Insights Can Be Transformational in term of goal setting

The above graphic illustrates how share of wallet changes drive bottom line revenue as well as converting customers into more loyal top customers.

Customer Attitudinal Trends Insights Are Critical to Customer Strategy

Customer Attitudinal Trends Insights Are Critical to Customer Strategy

Understanding your market & customer behavior insights is crucial to your company’s survival

The above graphic demonstrates a deep understanding in the shifting attitudinal and behavior patterns of the customer market

Customer Market Buying Power Insights are Crucial For Developing a Coherent Customer Strategy

Customer Market Buying Power Insights are Crucial For Developing a Coherent Customer Strategy

The above chart illustrates a company capability to understand shifting demographics as well as the underlining shift in spending habits per demographic group

Understanding Key Customer Behavior & Preferences is a Customer Strategy Imperrative

Understanding Key Customer Behavior & Preferences is a Customer Strategy Imperrative

The above chart illustrates a company capability to understand the changes in marketing channels as well as trends that might impact customer loyalty strategy

Customer Strategy: An Alignment of All Customer & Market Insights to Maximize Market Dominance & Profitability

Customer Strategy: An Alignment of All Customer & Market Insights to Maximize Market Dominance & Profitability

Once Customer and Market Insights are fully embraced, an Effective Customer Strategy can be developed that includes optimizing market channel selection, as well as contact and loyalty strategy program components

Blog Summary: In order to achieve the above insights, your company must develop and deploy the following strategic capabilities and delivery programs:

  1. Market sizing & trend insights

  2. Customer revenue and profitability insights analysis

  3. Customer share of wallet and competitor spend insights delivery capability

  4. Market trend & consumer attitudinal and behavior change longitudinal analysis

  5. 360° customer needs and preference cultivation that enables a personalized customer experience strategy and delivery (i.e. preference portal customer selection of preferred channels, content types, offer types, frequency of content delivery by content type.)

Below is a list of companies where I have helped develop these programs and are considered world-class in these practices:

  • Johnson & Johnson

  • Capital One

  • Amazon

  • American Express

  • Kelloggs

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How to Understand the “Market” in Marketing & How It Is Critical to Your Company’s Long-Term Success

Market Analysis Best Practices

                             Market Analysis Best Practice

 

 

 

 

 

 

 

 

 

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Effective marketing must include leveraging an array of holistic market insights

 

Market Assessment Components

                                Market Assessment Components

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Effective marketing leverages multi-dimensional market insights: Challenges, competition, customers, growth & trends, size/capacity, etc.

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The following is an array of insights that I created for a client who represents one of the top luxury resort companies in the world. These insights were designed to accomplish the following:

  • Develop Financial and market Insights to Increase revenue while decreasing costs

  • Increase standing in the marketplace relative to the competition

  • Help understand the market dynamics of the target market

  • Assist in identifying root causes for customer purchases, repeat purchases and the opportunity they have to boost customer loyalty

  • Improve the effectiveness of current marketing efforts by more effectively leveraging market insights

  • Develop a 5-year transformation plan to enable new capabilities that allow them to fulfill their future vision state

     

Best Practice Market Trend Analysis

                          Best Practice Market Trend Analysis

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Effective market analysis must include insights into market trends: Growth, Capacity and Expansion

 

Market Capacity Analysis

                                Market Capacity Analysis

Best Practice Market Capacity/Growth Analysis & Insights

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Best Practice Market Supply & Demand Analysis

                Best Practice Market Supply & Demand Analysis

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World-Class Market Supply & Demand Analysis including Market Trend Analysis

 

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Market & Competitor Price Analysis - Comparison

          Market & Competitor Price Analysis – Comparison

Market Competitive Pricing Analysis

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Competitive Pricing Analysis

                             Competitive Pricing Analysis

Market & Brand Competitive Pricing Analysis

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Brand Pricing Consistency Analysis

                             Brand Pricing Consistency Analysis

Company Net Daily Revenue Analysis

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Target Market Sizing Analysis

                                    Target Market Sizing Analysis

Market Profiling, Sizing & Penetration Analysis Example

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Market & Marketing Loyalty Analysis

                           Market & Marketing Loyalty Analysis

Market & Brand Loyalty Analysis: Likelihood to Purchase Again, Loyalty Opportunity

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Best Practice Marketing Effectiveness Analysis

              Best Practice Marketing Effectiveness Analysis

Marketing Mix Analysis & Marketing Campaign Effectiveness Analysis

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Return On Invested Capital (ROIC) Analysis

                   Return On Invested Capital (ROIC) Analysis

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Return on Invested Capital Analysis (ROIC): Spread Growth, Competition’s Return on Invested Capital, etc.

Cost of Goods Sold (COGS) Competitive Analysis

              Cost of Goods Sold (COGS) Competitive Analysis

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Company & Competitive Margin, Cost of Goods Sold and Selling General & Administrative (SG&A) Analysis

Cost of Goods Sold (COGS) Trend Analysis

                  Cost of Goods Sold (COGS) Trend Analysis

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Selling General & Administrative (SG&A) Projection & Trend Analysis

 

Revenue Target Analysis

                                Revenue Target Analysis

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Historical Revenue Analysis: Budget vs. Actual

Earnings Before Interest & Taxes (EBIT) Analysis

              Earnings Before Interest & Taxes (EBIT) Analysis

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Earnings Before Interest & Taxes (EBIT) Target & Margin Analysis

EBIT Scenario Projection Analysis

                        EBIT Scenario Projection Analysis

Market Strategy & EBIT Analysis

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Best Practice Transformation Plans

                       Best Practice Transformation Plans

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Best Practice Transformation Plans: Balances Capability Development with Corporate Vision & Reality

 

World-Class Transformation Plan Inputs

                   World-Class Transformation Plan Inputs

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A Best Practice Transformation Plan Includes a Multitude of Holistic Inputs

 

The Importance of the Brand Value Chain (BVC) to Attaining Market Leadership

A High Performing Company with All Value Chain Links Strong (No Brand Value Links Broken or Sub-optimized):

Company Brand Value Chain
Company Brand Value Chain

How a Broken Value Chain Impacts Your Company

In order for your company to have a chance at being a market leader, it is important for it to have all links in the brand value chain attaining top effectiveness. Just one broken link in this brand value chain (BVC) can bring your whole company down and subject your company to the following risks:

1)      Loss of Market Share as compared to your competitors

2)      Inability to close sales

3)      Lack of marketing leads and inquiries

4)      Declining customer base over time including customer defection to the competition

What is the Brand Value Chain (BVC) you might ask?

The Brand Value Chain is defined as the effectiveness of the sum of all company functions delivered to your customers and the marketplace: Marketing, Sales, Product/Service Quality, Customer Service, Pricing, Warranties/Returns, Customer Relationship & Experience Quality, etc.

Brand Value Chain Defined
Brand Value Chain Defined

Therefore, when one link of the brand value chain is weak or about to break, the following rule regarding brand image almost always holds true:

Brand Image & Brand Value Chain Rule
Brand Image & Brand Value Chain Rule

Symptoms of a Broken Value Chain:

  1. Your sales team just can’t seem to close the deals. Potential broken value chain links: Poor customer service, product utility/quality, pricing.
  2. You have great products, pricing and customer service but nobody has heard of you. Likely broken value chain links: Poor marketing and/or sales operations.
  3. Your customer base keeps declining year-over-year: Likely broken value chain links: Poor customer service or eroding product quality or pricing.
  4. Your marketing generates a plethora of leads that are not closed or turned into sales deals: Likely broken value chain links: Sales operations and marketing-sales lead management procedures are non-existent or sub-optimized.

Examples Companies with Potential Broken Value Chains:

Every day we see examples of companies that seem to have everything going for them except one weak link in the brand value chain that brings the entire perceived brand value down. Some examples are as follows:

  • Comcast – great programming, great marketing/sales, great products, great technology & infrastructure but perceived bad customer service and pricing creates a negative impression of the company by many customers and prospects – their company’s Achilles heel.
  • Searsgreat products, good pricing, good in-store sales, etc. but is severely lacking in marketing and promotions including in-store and on-line customer experience design which tends to brings down the other great intra-company performers and has led to a decline in the customer base.
  • General Motorsgood pricing, promotions, dealer sales, etc. but perceived increased negative product quality due to the number of recent recalls has brought many questions regarding the GM brand. These questions about product quality could impact customer retention and acquisition in the longer-term.

How the Broken Value Chain Impacts Company Performance:

What all of these examples show is that a company must deliver great performances in every category to become a market leader. One broken link in the brand value chain is enough to reduce the company to a market laggard and risks them going out of business over time if not rectified.

The following chart illustrates how one broken brand value chain has the ability to bring down the entire company and risk its overall viability:

Company Impacts of the Broken Brand Value Chain
Company Impacts of the Broken Brand Value Chain

 

How to Identify & Rectify a Broken Value Chain:

What steps can you take to identify and then rectify a broken brand value chain (BBVC) you might ask? Here are some easy steps to take to first, identify and then rectify a broken value chain:

Proven Methods to Identify a Broken Value Chain (BVC):

 

  • Inter-departmental peer reviews – How well do our peer departments think we are performing?
  • External departmental & function benchmark reviews – how well are doing vs. market leading company’s similar function (e.g. sales to sales or marketing to marketing performance comparison)?
  • Customer external scorecard reviews – How well do our customers and prospects think we are performing?

 

 Methods to Rectify a broken value chain:

  1. Perform Six-Sigma process and effectiveness improvement reviews
  2. Invite customers to participate in focus groups and advisory councils to help identify ways to improve the department’s effectiveness (sales, marketing, customer service, etc.)
  3. Form Improvement “Tiger Teams” consisting of inter-departmental high performers to assist with increasing functional performance.
  4. Invite outside and leading consulting firms to help infuse a holistic set of industry best practices across and within company functions – marketing, sales, customer service, pricing, etc.
  5. Tie performance and variable rewards to customer rated scorecards where company employees only get paid bonuses when our customers rate us as high performing.
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