From customer insight to business growth

ComEx

2013 – Commercial Excellence Forum

Why and how to transform customer insight into action

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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

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What does it take to drive topline growth?

Competence?

Experience?

Luck?

Customer Insight -can be turned into magic!

?

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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…

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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

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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

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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

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o th

e b

an

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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

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me

r Va

lue

Ch

ain

The

ban

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the c

usto

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r

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The key is to think outside-in

Outside Company focus In

Bonds Drivers Motivations

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The process of implementation starts with the customer and ends

with the customer…

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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

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#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…

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#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.

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#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

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#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

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#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

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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

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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

Learn more about Commercial Excellence Forum

Go to Implement Consulting Group's main website