ISBM Advisory Board Meeting
ISBM Members Meeting, February, 2013 4/22/2013
An Overview/Summary The ISBM Spring Meeting From Data, to Insight, to Action:
Mobilizing Customer and Market Insight to Drive Profitable Growth: B-to-B …Keys and Concrete “How To’s” for Marketers in Gathering and Leveraging Customer and Market Knowledge Better Enable You and Your Team To: • Bring Insight to Your Innovation Process • Mobilize Insight for Strong Value Propositions • Use Data to Reduce Customer Churn • Understand the Role of “Big Data” in B-to-B • Learn From Member Cases …And More ISBM Members Meeting– February 27-28, 2013: The Renaissance Tampa International Plaza Hotel
1
Our Objectives – Better Enable Members to: Better understand the nature of "Insight" itself --the places/people it comes from, processes for gaining it, Learn and deploy new frameworks, tools, and approaches to getting and mobilizing Insight from diverse sources: Customers, Markets, More… Gain know-how from ISBM Member cases: What works and what doesn’t Plenty of time to learn from one another, build connections and dialog.. TM
2
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 8:00 a.m.
Introduction/Welcome
8:30 a.m.
Larry Prusak, Thought Leader, Author, Founder, IIM “What is Insight: Getting it, Using it, Profiting from it"
9:15 a.m.
Networking Break
9:45 a.m.
Philip Fracassa, Sr. VP, Planning and Development, Timken “Mobilizing Customer Segmentation Insights: A Transformation Underway at Timken”
10:30 a.m.
Break
11:15 a.m.
Jerry Alderman, CEO/Author Valkre “From Data, to Insight to Action: Essentials for Understanding, Creating and Delivering Superior Customer Value in Business Markets"
11:45 a.m.
Networking Lunch (Costa del Sol Ballroom E-H)
3
1 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Larry Prusak: With Apologies - please don't tell him!
4
What is Insight? Getting it,
Using it, Profiting from it. TM
5
The knowledge "got out" -…everyone has it
Insight is what's scarce 6
2 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Lessons in gaining insight: Those who won a Nobel Prize …and those who almost did…
Brilliance (given) 1. Luck 2. The Strength and durability of his network 7
"Network with people who have different toolsets from yours…"
8
Invest in Gaining Insight: Set aside time Read and engage with the right sort of stuff…
Signal
Set the stage for separating "Signals" from "Noise" in an environment where the "Signal to Noise Ratio" is quite poor. Signal + Noise
9
3 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
"See through the noise:" Manage your knowledge and your network to: "Be the fertile ground" for Insight 10
Change Your Story: See the world and yourself from a different perspective
11
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 8:00 a.m.
Introduction/Welcome
8:30 a.m.
Larry Prusak, Thought Leader, Author, Founder, IIM “What is Insight: Getting it, Using it, Profiting from it"
9:15 a.m.
Networking Break
9:45 a.m.
Philip Fracassa, Sr. VP, Planning and Development, Timken “Mobilizing Customer Segmentation Insights: A Transformation Underway at Timken”
10:30 a.m.
Break
11:15 a.m.
Jerry Alderman, CEO/Author Valkre “From Data, to Insight to Action: Essentials for Understanding, Creating and Delivering Superior Customer Value in Business Markets"
11:45 a.m.
Networking Lunch (Costa del Sol Ballroom E-H)
12
4 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
CREATING VALUE THROUGH STRATEGIC CUSTOMER SEGMENTATION Philip D. Fracassa Senior Vice President Corporate Planning & Development
13
MARKET ECONOMICS / COMPETITIVE POSITION
Phil Fracassa, Timken
14 14
CUSTOMER SEGMENTATION – 2007/2008
H
Customer Financial Attractiveness
L
Value proposition fit (Ability to compete)
H
15 15
5 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
FINANCIAL ATTRACTIVENESS VS. VALUE PROPOSITION FIT - 2008 2008: Financial Attractiveness vs. Value propostion Fit 50%
Increasing Sharehold er Value
40%
30%
Financial Attraveness
20%
Positive EP
10% Cost of Capital
0%
Zero EBIT
-10%
Negative EP
-20% -30%
Decreasin g Sharehold er Value
-40% -50% 20%
30%
40%
50%
60%
70%
80%
90%
16
100%
Value Propostion Fit
EP = Economic Profit 16
FINANCIAL ATTRACTIVENESS 2011
VS.
VALUE PROPOSITION FIT -
2011: Financial Attractiveness vs. Value propostion Fit 50%
Increasing Sharehold er Value
40% 30%
Financial Attractiveness
20%
Positive EP
10% Cost of Capital
0%
Zero EBIT
-10%
Negative EP
-20%
-30%
Decreasin g Sharehold er Value
-40%
-50% 20%
30%
40%
50%
60%
70%
80%
90%
17
100%
Value Proposition Fit
EP = Economic Profit 17
TIMKEN FINANCIAL PERFORMANCE Historical Timken Sales and EBIT $6,000
16% 14%
$5,000
10% $3,000
8% 6%
EBIT Margin
Sales ($M USD)
12% $4,000
$2,000 4% $1,000 2% $0
0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
18 18
6 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
BIG TAKEAWAYS • Must tie to corporate strategy • Alignment with business leadership • Customer Segmentation must tie to your Value Proposition • Must have internal alignment to segmentation
19 19
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 8:00 a.m.
Introduction/Welcome
8:30 a.m.
Larry Prusak, Thought Leader, Author, Founder, IIM “What is Insight: Getting it, Using it, Profiting from it"
9:15 a.m.
Networking Break
9:45 a.m.
Philip Fracassa, Sr. VP, Planning and Development, Timken “Mobilizing Customer Segmentation Insights: A Transformation Underway at Timken”
10:30 a.m.
Break
11:15 a.m.
Jerry Alderman, CEO/Author Valkre “From Data, to Insight to Action: Essentials for Understanding, Creating and Delivering Superior Customer Value in Business Markets"
11:45 a.m.
Networking Lunch (Costa del Sol Ballroom E-H)
20
DATA TO ACTION:
SPEED OF THE GAME ISBM : Winter Meeting February 27, 2013 21
7 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
MARKETING IS THE NEW PROFITABLE GROWTH CHANNEL
Data
Insight
Action
Marketing
Customer
Marketing
Sales
Supplier
There is real business downside What is your plan? 22
22
© 2013 Valkre Solutions, Inc.
23 Jerry Alderman
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8 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 1:15 p.m.
Abbie Griffin; ISBM Fellow, University of Utah “Gathering and Mobilizing Insight Direct from the Customer: Lessons from 'Serial Innovators'"
2:00 p.m.
Networking Break
2:30 p.m.
George Parr, Optimal Strategix, (Former CMO; Diversey) “Creating and Mobilizing Segmentation Insight to Drive Growth Strategy: A Case Study”
3:15 p.m. 3:45 p.m.
Networking Break Pam Brown, Global Manager-Customer/Market Insight; DuPont “ Mobilizing a Strategic Information Resource: A Journey in Progress”
4:30 p.m.
Wrap-up/Summary Discussion
6:00 p.m.
Networking Reception/Dinner (La Fuente Courtyard)
25
Insights from Serial Innovators The path to success:
“You have to synthesize new solutions to existing problems.”
Dr. Abbie Griffin
“In order to make a company successful, you have to have a product that people really need. When you call up and talk to a wide banner of customers who say the same thing, you know you have an opportunity. They don’t have an invested interest other than to get their problem solved.”
“Innovators must make sure that the product meets that customer’s needs and makes him money and makes him look good.”
26
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9 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Serial Innovator Model: Process
28
From this arises DIY needs gathering as a process “Every person on the team has an obligation to understand our market deeply. This comes from 2 beliefs: 1. None of us do. 2. The market morphs and so we need to have a lot of antennae out there to discern the wheat from the chaff.” 29
Process Steps for Finding and Understanding Build rapport Observe At the customer location Ask “Why” questions Listen effectively
30
10 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Creating the Solution
Enlist “Customers of Difference” Indwell: live with the problem Tom
Osborn
Simultaneous focal and subsidiary awareness (forest and trees)
31
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 1:15 p.m.
Abbie Griffin; ISBM Fellow, University of Utah “Gathering and Mobilizing Insight Direct from the Customer: Lessons from 'Serial Innovators'"
2:00 p.m.
Networking Break
2:30 p.m.
George Parr, Optimal Strategix, (Former CMO; Diversey) “Creating and Mobilizing Segmentation Insight to Drive Growth Strategy: A Case Study”
3:15 p.m. 3:45 p.m.
Networking Break Pam Brown, Global Manager-Customer/Market Insight; DuPont “ Mobilizing a Strategic Information Resource: A Journey in Progress”
4:30 p.m.
Wrap-up/Summary Discussion
6:00 p.m.
Networking Reception/Dinner (La Fuente Courtyard)
32
A Fact-Based Value Proposition Development Was At The Core Of Our Growth Strategy For The Business GROWTH STRATEGY Value Creation
Segmentation & Targeting
Value Proposition
How does the market segment?
Which segments should we target?
• Primary • Secondary
Delivery
• Opportunistic
Points of Preference
Go-To-Market Strategy
• What will inspire loyalty?
Deliver Ideal End User Experience
Points of Difference
• Offering (Product & Service)
• What will differentiate us?
• Brand/Communication
Points of Entry
• Channel
• What is required to compete?
• Pricing
Empirical Customer & Market Insights ©2013 | Optimal Strategix Group | www.optimalstrategix.com
33
George Parr 33
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11 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Sustainable Profitable Growth Requires A Multi-dimensional And Disciplined Approach ….
CATEGORY/MARKET Level Insights
Market Insights
Market-Level & Customer NeedsBased Research
PRODUCT Level Insights
Product-Level Benefits Hierarchy Research
END CUSTOMER Usage Insights
Ethnographic and U&A Research
34 ©2013 | Optimal Strategix Group | www.optimalstrategix.com
34
34
The Power of Segmentation
Market Insights
Provide a Robust and Complete Understanding of the Customer “Firmographic”
Behavioral
• • • • •
• • • •
Manufacturing ~40,000 sqf 250-1,000 kW demand 3+ locations
• • • • • •
Solutions-Based
Manufacturing 45,000 sqf 630 kW demand Buys through a broker Establishes long-term contracts
Manufacturing 45,000 sqf 630 kW demand Buys through a broker Hassle-free support
• • • • • •
Manufacturing 41,000 sqf 870 kW demand Buys online Changes providers often Protection against the unexpected
• • • • • •
Manufacturing 41,000 sqf 300 – 900 kW Buys online Changes providers often Shops for best electricity rates
Good
• • • • •
• •
Manufacturing 38,000 sqf 300 kW demand Buys online Shops for best rates Lowest price
10-18% Topline Growth 6-8% Bottom Line Growth
Better
Best
35 35
©2013 | Optimal Strategix Group | www.optimalstrategix.com
Resulted in a fact-based understanding of each segment characteristics and profile Total Respondents: 18%
Total Spend: 24%
Spend Index: 128
Discriminating Attitudes Performance Partners
Segment Interpretation: This type of customer wants to partner directly with a cleaning chemicals company to improve cleaning results for their site(s). These customers are highly collaborative, see differences in cleaning chemical companies and would rather use a single manufacturer for all of their needs. They want the manufacturer to get to know their business and provide advice as they believe distributors provide biased information.
0.52
Enhance your company’s reputation
0.31
Cleaning chem. co’s should find ways to reduce operating costs Prefer to work with co that allows you to purchase chems, serv, equip from one source
0.6
0.53
Willing to pay more for environmentally friendly Prefer self-service tools that help me choose products and resolve problems
-0.19
-1.09
Distributors provide unbiased info Cleaning chem. co’s are all the same
©2013 | Optimal Strategix Group | www.optimalstrategix.com
Market Insights
-0.75
Further Defining Attitudes Do seek advice from cleaning chemical companies Prefer cleaning chemical companies that can enhance their cleaning results Value collaboration with sales people Believe tools and accessories are essential to enhancing cleaning results Rely on chem. cleaning co’s to comply with sanitation standards
36
Variance from the overall mean -2 +2
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12 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Brand Was Positioned To Appeal To Target Segments And Activate Marketing Strategy Successfully
Target
To business and facility owners and managers who want more from cleaning and sanitation solutions and they seek partners who have the expertise to deliver them
Frame of Reference
Diversey is the cleaning, sanitation and hygiene solutions provider …
Point of Difference
who is the leading expert in superior and sustainable performance
PoP
Points of Difference
Brand Equity
Reasons to Believe
superior performance, results you need, enhance your reputation, right solutions, integrated product solutions, leading edge solutions, what you need when and where you need it ‘Green’ Leadership (superior knowledge & expertise) and ‘Green’ Enablement (helps transition to green)
Points of Entry
Brand Essence
37 ©2013 | Optimal Strategix Group | www.optimalstrategix.com
37
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ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 1:15 p.m.
Abbie Griffin; ISBM Fellow, University of Utah “Gathering and Mobilizing Insight Direct from the Customer: Lessons from 'Serial Innovators'"
2:00 p.m.
Networking Break
2:30 p.m.
George Parr, Optimal Strategix, (Former CMO; Diversey) “Creating and Mobilizing Segmentation Insight to Drive Growth Strategy: A Case Study”
3:15 p.m. 3:45 p.m.
Networking Break Pam Brown, Global Manager-Customer/Market Insight; DuPont “ Mobilizing a Strategic Information Resource: A Journey in Progress”
4:30 p.m.
Wrap-up/Summary Discussion
6:00 p.m.
Networking Reception/Dinner (La Fuente Courtyard)
38
Major Methodologies and Tools that we used early in our journey to Create the Intelligence Services Center of Excellence
1. Stakeholder Needs Assessment 2. Maturity diagnostic
Pam Brown
3. Launch of a Corporate Best Practice Intelligence Cycle 4. Training to Embed best practices 5. Highlight of a few Supportive Tools A. Company and Landscape Monitoring B. Web Enabled Customer Intelligence C. Country level specific market intelligence portals 39
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ISBM Members Meeting, February, 2013 4/22/2013
Methodology # 2: Maturity Diagnostic –How Well Is A BU Practicing Intelligence ? Beginner
Process How is Intell typically conducted?
o Reactive. o Ad hoc. Asneeded basis. o Uncoordinated infor- mation purchases.
Adv Beginner o Some secondary info source collection. o Little or no analysis.
Intermediate o Regular secondary info collection / dissemination. o Centralized analysis with limited scope. o Some primary Intell effort for KITs.
Maturing o Complex market monitoring. o On-going, focused primary Intell efforts for KITs, KIQs. o Advanced analysis. o Training for relevant cross team members.
Mature o Primary and secondary Intell integrated into key business processes. o Applied to key decisions. o Future-oriented with early warning system. o Advanced training available.
Tools What tools are used to conduct Intell?
o No specific or dedicated tools.
o Dissemination of special reports.
o Collection tools in place. o Structured access to public info . o Info posted to shared files. o SWOTs/ 5 Forces analysis.
o Fully integrated content production. o Alert generation. o Info and analysis posted to Webbased portal.
o Collaboration features for end users.
Deliverables How is Intell typically delivered to users?
o Ad-hoc. o One-offs.
o Special event, market assessment or project-based reporting.
o Structured reports, news-letters. o Competitor profiles.
o Targeted, personalized alerts to key stakeholders. o General and deep-dive analysis. o Presentations to targeted audiences.
o Analyst commentary offered and solicited. o Regularly scheduled analysis and sharing. o Analysis 40 integrated into key decisions.
40
Adapted from Hedin & Thieme and Husar & Gayoso, both 2010; Herring & Leavitt, 2011.
3rd Methodology: Launch of DuPont Corporate Best Practice Intelligence Cycle
This cycle is deployed across all managing frameworks, Innovation, marketing and Sales 41
41
Moving Beyond Silo-ed Intelligence Disciplines to Holistic Intelligence To Achieve More Integrated, Impactful Insights Company (us) Focus •
Sales by product or portfolio
•
Production costs
•
Marketing activities like promotion type or spend
•
Historical customer sales or relationship data
•
Patent estate and other technology benchmarking
Category and Chain Focus Business Intelligence Key past company transaction data FOR Measurement and benchmarking to improve current performance
Competitive Intelligence
Competitor Focus •
Profiling Competitors
•
STEEP, PEST, SWOT or 4 Corners analysis
•
Product benchmarking
•
Technology benchmarking
•
War gaming and scenario planning
•
Collective intelligence
Advance understanding of intent, capabilities and activities of competitors or other industry players FOR Better strategy and tactic formulation and action
Market Intelligence Information relative to a company’s market(s) TO Determine market opportunity, penetration & development metrics
•
Industry trends
•
Technology/Patent/Regulatory Trends
•
Market size, share, segmentation
•
Leading indicators
•
Demand sensing / forecasting
•
M&A or JV activity
Customer Intelligence Information about existing or prospective customers FOR Increased understanding of preferences & behaviors
Customer Focus •
Ideation, unmet needs
•
Concept, value proposition and positioning testing
•
Needs-based segmentation
•
Pricing sensitivity
•
Awareness & image tracking
•
Product satisfaction tracking 42
42
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ISBM Members Meeting, February, 2013 4/22/2013
Collaboration Spaces Foster Enhanced Communication By automating the routinized tasks of CI, resources are better spent on communication
Key Benefits Birds eye view on all key aspects of market and competitive landscape including emerging threats BUSINESS X KNOWLEDGE PORTAL
Corporate Leadership
Daily gathering made exponentially more efficient
Key Intelligence Topics (KITs)
BU Leadership “Y”
Brand, Marketing, & Product Mgrs.
Time is better spent on valuable synthesis (i.e. “What does it all mean?) One-stop shopping for daily information needed in prep for customer visits; Ability to track competitor activities in response to sales tactics, etc.
Finance, MR, Marcomm/PR & CR&D Sales
43
Solving the Access to Sample: The DuPont Market Advisory Panel The DuPont Market Advisory Panel is a global community of 4000 dedicated contacts, which include •Customers/Distributors •Specifiers/End Users •Retailers •Industry Experts In key strategic markets •Alternate energy •Food •Protecting Lives and the Environment •Electronics •Construction •Transportation
Marketing leaders can investigate the attitudes, behaviors and opinions of this community using web enabled tools •
Results available instantly
•
$1/complete
•
50-75% response rate (compared to 10% for non-panelists)
•
44 languages for local customization
• •
Corporately sponsored spend and resources Panelist serve for 2 years, with 4-8 touch points/year. We provide information on their markets in return for their voice on steps in the strategic marketing process
•
44
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Thursday, February 28, 2013 7:00 a.m.
Continental Breakfast (Costa del Sol Ballroom E-H)
8:00 a.m.
Convene
8:15 a.m.
Jean Angus, Saint Gobain; Dan Adams, Advanced Industrial Marketing “Seven Practices for B2B-Optimized Customer Insights And How Saint-Gobain Implemented Them”
9:15 a.m. 9:45 a.m.
Networking Break Paulo Costa, Director, Advanced Analytics, Cisco “The Wallet, Acquisition and Retention Program at Cisco: Lessons, Pitfalls, Applications…”
10:30 a.m. 10:45 a.m.
Quick Break George Brown, Blue Canyon Partners “Mobilizing Customer Insight at 'Stage-Gate Zero'"
11:30 a.m.
Summary/Wrap-up
12:00
Adjourn
45
15 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
7 Practices for B2B–Optimized Customer Insights …and How Saint-Gobain Implemented Them Agenda for 1st Part… Dan Adams
1. 2. 3. 4. 5. 6. 7.
Begin with a customer tour when possible Interview customers using digital projectors Let customers guide your interviews Use trigger methods in customer interviews Send commercial-technical interview teams Use advanced listening and probing Add quantitative customer interviews 46
© AIM, Inc.
Practice 1. Begin with a Customer Tour When Possible
AMUSE Methodology for B2B Tours A Activity
M
U
Activity
S
Activity
E
Accelerate Activity
Faster … reduce labor costs, increase capacity
Minimize Input
Cheaper … reduce material, energy & capital
Upgrade Output
Better … fewer defects, more customer benefits
Simplify Transition
Streamline … reduce inventory & lead time
Eliminate Activity
Or combine activities … lower overall costs
47
Supplier-Directed Interview
Customer-Directed Interview
(Traditional)
(New Product Blueprinting)
1. First question First answer
What else? Better Outcomes
2. Second question Second answer More Engagement 3. Third question Third answer
No idea where they’re going!
Less Effort
48
© AIM, Inc.
16 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
5 Parts of Discovery Interviews
1. Current State 2. Problems 3. Ideal State 4. Triggered Ideas 2-3 Record Record Record Drag Questions customer on on onyellow green blue in traditional digital digital favorites digital“sticky “sticky “sticky to Q&A the notes” notes” notes” format top
5. Top Picks
49
© AIM, Inc.
Practice 5. Send commercial-technical interview teams
TechnicalCommercial Team? Team
Consultant Only?
Functional Alignment
Richer Content
Sales Rep Only?
Clarity of Purpose
Customer Willingness 50
© AIM, Inc.
7 Practices for B2B–Optimized Customer Insights …and How Saint-Gobain Implemented Them Agenda for 2nd Part…
1. 2. 3. 4. 5. 6. 7.
Jean Angus
Saint-Gobain’s innovation approach Strategically selling the “product” Finding market opportunity fit to core Commissioning the team Train, follow-up and coach Track and measure Lessons Learned
51
17 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Point 3. Finding market opportunity fit to core Workshop using Five Step Process… eXplore Market Fit
Discover Core Competency
Assess Against Market
Recognize Strengths
Combine competencies; & describe
Allows access to many markets? Rank best fit to Core
Rank to competitors; identify competencies
Identify the competitive advantages
Build Strategy from Core
Blueprint Market Needs 52
Questions to help pick the best team members… In what regions do you want to focus this market? What resources are in this region to support process? Who is the lead marketing person in this region? Who is the primary technical contact for customers? Which technical people can listen/communicate well? Who’s the sales rep for major accounts in the market ? For new markets… Who’s a hunter, not a farmer? 53
© Advanced Industrial Marketing, Inc.
Point 7. Lessons Learned
1. Lessons from the field (S-G Blueprinters) a. b.
Look for the “non-obvious” during interviews Done well, interviews let you engage customers
© Advanced Industrial Marketing, Inc.
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ISBM Members Meeting, February, 2013 4/22/2013
Point 7. Lessons Learned
2. Market segments a.
Pick ones where resources are available and within your strategy If existing market, consider entire value chain; schedule 1st interviews with ones you know best If new with no contacts, find industry expert
b. c.
3. Team leads and support a. Leaders with good planning and project management excel b. Sales support who are “hunters” help move faster 55 © Advanced Industrial Marketing, Inc.
Point 7. Lessons Learned
4. Process support a. Have shared information site; translate support materials in local language b. Train regional coaches
5. Interview a. b. c. d.
Have commercial and technical on interview Know and practice role beforehand Have coach on 1st interview Debrief after 56
Celebrate successes and failures… and learn from both © Advanced Industrial Marketing, Inc.
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Thursday, February 28, 2013 7:00 a.m.
Continental Breakfast (Costa del Sol Ballroom E-H)
8:00 a.m.
Convene
8:15 a.m.
Jean Angus, Saint Gobain; Dan Adams, Advanced Industrial Marketing “Seven Practices for B2B-Optimized Customer Insights And How Saint-Gobain Implemented Them”
9:15 a.m. 9:45 a.m.
Networking Break Paulo Costa, Director, Advanced Analytics, Cisco “The Wallet, Acquisition and Retention Program at Cisco: Lessons, Pitfalls, Applications…”
10:30 a.m. 10:45 a.m.
Quick Break George Brown, Blue Canyon Partners “Mobilizing Customer Insight at 'Stage-Gate Zero'"
11:30 a.m.
Summary/Wrap-up
12:00
Adjourn
57
19 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Paolo Costa
Where to Compete
How to Compete
Identify sub markets of interest: countries, industries, subindustries, empl-size, etc, on which CISCO needs to focus
Determine the optimum marketing mix for each sub-market for a given set of marketing objectives (Wallet Share Improvement, Acquisition and Retention).
Analytical Models that support it: Portfolio analysis with dimensions such as market attractiveness, market position and competitive strengths
Map WAR Objectives
Define/Optimize Mktg Mix
Identify in each priority sub market what is the core marketing objective associated with each company
Determine the appropriate marketing mix (4 Ps) for each sub market and for each core marketing objective
Analytical Models that support it: Bi-Dimensional or Multi-dimensional Game Boards
Analytical Models that support it: Purchase Behavior Segmentation Propensity to Buy Market Basket Price Optimization Partner Optimization W
A
R
….
…
…
Promotion
.
…
..
Price
..
..
.
Place
……
…
..
Product
Ex.: each company in the sub market S1 will be assign to one WAR Game Board Cell
Customer Valuation Models Segmentation Models
58 58
© 2010 Cisco and/or its affiliates. All rights reserved.
Forecasting, Economic Analysis & Models Wallet Share Improvement, Acquisition Retention Product
P2B, Refresh Cycle, Market Basket, Adoption Curve
Promotion
“Marketing Mix Optimization”, Brand Optimization, Funnel Stage Identification
Price
Price Optimization, Price & Adoption Curve
Place
Partner Led, Partner Optimization, Partner Wallet Share Customer & Prospects Valuation Models (Wallet & LTV) Customers and Prospects Segmentation Model
59 59
© 2010 Cisco and/or its affiliates. All rights reserved.
How can we verify if a predictive model produces the expected results?
1
Companies from 2 the market in study -+ + -- - - +++ - - - +++ -- --- - +++ - + + ++ ---++ +++ ++ +++ + ++
1. Start with all companies from the market in study; 2. Use the model to score companies on likelihood of responding to the action; 3. Randomly select companies to be part of the control group; 4. To create the target group select companies with the highest scores (and which are not already in the control group); 5. Merge both groups to create a single list for action, but hide the scores and the group associated with each company. (This allows the analysis of the model independently of the effect of the marketing actions that will follow);
4
3 -
--
---
+++
+
++
Control group (random)
5
+++ +++
+++ +++
!
!
6
List of companies for actions
7. When ready to analyse results separate each company back to its original group;
7
8. Compare success metrics from each group.
8
-
-+++
---
+
Control group
+++
Target group (only highest scores)
!
!
6. Use the list in marketing actions (may include touches: !);
© 2010 Cisco and/or its affiliates. All rights reserved.
+++ - - -
++
+++ +++
+++ +++
+++
Target group
60 60
20 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
How can I evaluate a segmentation model? Segmentation Effectiveness Criteria
•
•
•
•
• •
Identifiability • The ability to identify the customers in each segment using available variables. Substantiality • The size of each segment need to be a large enough portion of the market to ensure the profitability of target marketing programs. Accessibility • The ability to reach the targeted segments through promotional or distributional offers Stability • If the segments maintain their characteristics for a reasonable time horizon Responsiveness • If the segments respond uniquely to market actions targeted at them Actionability • Segments are actionable if their identification provides guidance for decisions on the effective specification of marketing actions.
Source: Frank, Messy and Wind
61 61
© 2010 Cisco and/or its affiliates. All rights reserved.
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Thursday, February 28, 2013 7:00 a.m.
Continental Breakfast (Costa del Sol Ballroom E-H)
8:00 a.m.
Convene
8:15 a.m.
Jean Angus, Saint Gobain; Dan Adams, Advanced Industrial Marketing “Seven Practices for B2B-Optimized Customer Insights And How Saint-Gobain Implemented Them”
9:15 a.m. 9:45 a.m.
Networking Break Paulo Costa, Director, Advanced Analytics, Cisco “The Wallet, Acquisition and Retention Program at Cisco: Lessons, Pitfalls, Applications…”
10:30 a.m. 10:45 a.m.
Quick Break George Brown, Blue Canyon Partners “Mobilizing Customer Insight at 'Stage-Gate Zero'"
11:30 a.m.
Summary/Wrap-up
12:00
Adjourn
62
George Brown
63
21 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
64
65
Our Objectives – Better Enable Members to: Better understand the nature of "Insight" itself --the places/people it comes from, processes for gaining it, Learn and deploy new frameworks, tools, and approaches to getting and mobilizing Insight from diverse sources: Customers, Markets, More… Gain know-how from ISBM Member cases: What works and what doesn’t Plenty of time to learn from one another, build connections and dialog.. TM
66
22 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Thanks to all of you and our speakers! The ISBM Spring Meeting From Data, to Insight, to Action:
Mobilizing Customer and Market Insight to Drive Profitable Growth: B-to-B See you at our 30th Anniversary Meeting, September 24-25, 2013 at Penn State! • Thank you for being with us, • Sharing your Insight • ...and your support of ISBM Safe home!
67 67
23 (C) 2013, ISBM - Penn State
An Overview/Summary The ISBM Spring Meeting From Data, to Insight, to Action:
Mobilizing Customer and Market Insight to Drive Profitable Growth: B-to-B …Keys and Concrete “How To’s” for Marketers in Gathering and Leveraging Customer and Market Knowledge Better Enable You and Your Team To: • Bring Insight to Your Innovation Process • Mobilize Insight for Strong Value Propositions • Use Data to Reduce Customer Churn • Understand the Role of “Big Data” in B-to-B • Learn From Member Cases …And More ISBM Members Meeting– February 27-28, 2013: The Renaissance Tampa International Plaza Hotel
1
Our Objectives – Better Enable Members to: Better understand the nature of "Insight" itself --the places/people it comes from, processes for gaining it, Learn and deploy new frameworks, tools, and approaches to getting and mobilizing Insight from diverse sources: Customers, Markets, More… Gain know-how from ISBM Member cases: What works and what doesn’t Plenty of time to learn from one another, build connections and dialog.. TM
2
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 8:00 a.m.
Introduction/Welcome
8:30 a.m.
Larry Prusak, Thought Leader, Author, Founder, IIM “What is Insight: Getting it, Using it, Profiting from it"
9:15 a.m.
Networking Break
9:45 a.m.
Philip Fracassa, Sr. VP, Planning and Development, Timken “Mobilizing Customer Segmentation Insights: A Transformation Underway at Timken”
10:30 a.m.
Break
11:15 a.m.
Jerry Alderman, CEO/Author Valkre “From Data, to Insight to Action: Essentials for Understanding, Creating and Delivering Superior Customer Value in Business Markets"
11:45 a.m.
Networking Lunch (Costa del Sol Ballroom E-H)
3
1 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Larry Prusak: With Apologies - please don't tell him!
4
What is Insight? Getting it,
Using it, Profiting from it. TM
5
The knowledge "got out" -…everyone has it
Insight is what's scarce 6
2 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Lessons in gaining insight: Those who won a Nobel Prize …and those who almost did…
Brilliance (given) 1. Luck 2. The Strength and durability of his network 7
"Network with people who have different toolsets from yours…"
8
Invest in Gaining Insight: Set aside time Read and engage with the right sort of stuff…
Signal
Set the stage for separating "Signals" from "Noise" in an environment where the "Signal to Noise Ratio" is quite poor. Signal + Noise
9
3 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
"See through the noise:" Manage your knowledge and your network to: "Be the fertile ground" for Insight 10
Change Your Story: See the world and yourself from a different perspective
11
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 8:00 a.m.
Introduction/Welcome
8:30 a.m.
Larry Prusak, Thought Leader, Author, Founder, IIM “What is Insight: Getting it, Using it, Profiting from it"
9:15 a.m.
Networking Break
9:45 a.m.
Philip Fracassa, Sr. VP, Planning and Development, Timken “Mobilizing Customer Segmentation Insights: A Transformation Underway at Timken”
10:30 a.m.
Break
11:15 a.m.
Jerry Alderman, CEO/Author Valkre “From Data, to Insight to Action: Essentials for Understanding, Creating and Delivering Superior Customer Value in Business Markets"
11:45 a.m.
Networking Lunch (Costa del Sol Ballroom E-H)
12
4 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
CREATING VALUE THROUGH STRATEGIC CUSTOMER SEGMENTATION Philip D. Fracassa Senior Vice President Corporate Planning & Development
13
MARKET ECONOMICS / COMPETITIVE POSITION
Phil Fracassa, Timken
14 14
CUSTOMER SEGMENTATION – 2007/2008
H
Customer Financial Attractiveness
L
Value proposition fit (Ability to compete)
H
15 15
5 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
FINANCIAL ATTRACTIVENESS VS. VALUE PROPOSITION FIT - 2008 2008: Financial Attractiveness vs. Value propostion Fit 50%
Increasing Sharehold er Value
40%
30%
Financial Attraveness
20%
Positive EP
10% Cost of Capital
0%
Zero EBIT
-10%
Negative EP
-20% -30%
Decreasin g Sharehold er Value
-40% -50% 20%
30%
40%
50%
60%
70%
80%
90%
16
100%
Value Propostion Fit
EP = Economic Profit 16
FINANCIAL ATTRACTIVENESS 2011
VS.
VALUE PROPOSITION FIT -
2011: Financial Attractiveness vs. Value propostion Fit 50%
Increasing Sharehold er Value
40% 30%
Financial Attractiveness
20%
Positive EP
10% Cost of Capital
0%
Zero EBIT
-10%
Negative EP
-20%
-30%
Decreasin g Sharehold er Value
-40%
-50% 20%
30%
40%
50%
60%
70%
80%
90%
17
100%
Value Proposition Fit
EP = Economic Profit 17
TIMKEN FINANCIAL PERFORMANCE Historical Timken Sales and EBIT $6,000
16% 14%
$5,000
10% $3,000
8% 6%
EBIT Margin
Sales ($M USD)
12% $4,000
$2,000 4% $1,000 2% $0
0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
18 18
6 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
BIG TAKEAWAYS • Must tie to corporate strategy • Alignment with business leadership • Customer Segmentation must tie to your Value Proposition • Must have internal alignment to segmentation
19 19
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 8:00 a.m.
Introduction/Welcome
8:30 a.m.
Larry Prusak, Thought Leader, Author, Founder, IIM “What is Insight: Getting it, Using it, Profiting from it"
9:15 a.m.
Networking Break
9:45 a.m.
Philip Fracassa, Sr. VP, Planning and Development, Timken “Mobilizing Customer Segmentation Insights: A Transformation Underway at Timken”
10:30 a.m.
Break
11:15 a.m.
Jerry Alderman, CEO/Author Valkre “From Data, to Insight to Action: Essentials for Understanding, Creating and Delivering Superior Customer Value in Business Markets"
11:45 a.m.
Networking Lunch (Costa del Sol Ballroom E-H)
20
DATA TO ACTION:
SPEED OF THE GAME ISBM : Winter Meeting February 27, 2013 21
7 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
MARKETING IS THE NEW PROFITABLE GROWTH CHANNEL
Data
Insight
Action
Marketing
Customer
Marketing
Sales
Supplier
There is real business downside What is your plan? 22
22
© 2013 Valkre Solutions, Inc.
23 Jerry Alderman
24
8 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 1:15 p.m.
Abbie Griffin; ISBM Fellow, University of Utah “Gathering and Mobilizing Insight Direct from the Customer: Lessons from 'Serial Innovators'"
2:00 p.m.
Networking Break
2:30 p.m.
George Parr, Optimal Strategix, (Former CMO; Diversey) “Creating and Mobilizing Segmentation Insight to Drive Growth Strategy: A Case Study”
3:15 p.m. 3:45 p.m.
Networking Break Pam Brown, Global Manager-Customer/Market Insight; DuPont “ Mobilizing a Strategic Information Resource: A Journey in Progress”
4:30 p.m.
Wrap-up/Summary Discussion
6:00 p.m.
Networking Reception/Dinner (La Fuente Courtyard)
25
Insights from Serial Innovators The path to success:
“You have to synthesize new solutions to existing problems.”
Dr. Abbie Griffin
“In order to make a company successful, you have to have a product that people really need. When you call up and talk to a wide banner of customers who say the same thing, you know you have an opportunity. They don’t have an invested interest other than to get their problem solved.”
“Innovators must make sure that the product meets that customer’s needs and makes him money and makes him look good.”
26
27
9 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Serial Innovator Model: Process
28
From this arises DIY needs gathering as a process “Every person on the team has an obligation to understand our market deeply. This comes from 2 beliefs: 1. None of us do. 2. The market morphs and so we need to have a lot of antennae out there to discern the wheat from the chaff.” 29
Process Steps for Finding and Understanding Build rapport Observe At the customer location Ask “Why” questions Listen effectively
30
10 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Creating the Solution
Enlist “Customers of Difference” Indwell: live with the problem Tom
Osborn
Simultaneous focal and subsidiary awareness (forest and trees)
31
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 1:15 p.m.
Abbie Griffin; ISBM Fellow, University of Utah “Gathering and Mobilizing Insight Direct from the Customer: Lessons from 'Serial Innovators'"
2:00 p.m.
Networking Break
2:30 p.m.
George Parr, Optimal Strategix, (Former CMO; Diversey) “Creating and Mobilizing Segmentation Insight to Drive Growth Strategy: A Case Study”
3:15 p.m. 3:45 p.m.
Networking Break Pam Brown, Global Manager-Customer/Market Insight; DuPont “ Mobilizing a Strategic Information Resource: A Journey in Progress”
4:30 p.m.
Wrap-up/Summary Discussion
6:00 p.m.
Networking Reception/Dinner (La Fuente Courtyard)
32
A Fact-Based Value Proposition Development Was At The Core Of Our Growth Strategy For The Business GROWTH STRATEGY Value Creation
Segmentation & Targeting
Value Proposition
How does the market segment?
Which segments should we target?
• Primary • Secondary
Delivery
• Opportunistic
Points of Preference
Go-To-Market Strategy
• What will inspire loyalty?
Deliver Ideal End User Experience
Points of Difference
• Offering (Product & Service)
• What will differentiate us?
• Brand/Communication
Points of Entry
• Channel
• What is required to compete?
• Pricing
Empirical Customer & Market Insights ©2013 | Optimal Strategix Group | www.optimalstrategix.com
33
George Parr 33
33
11 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Sustainable Profitable Growth Requires A Multi-dimensional And Disciplined Approach ….
CATEGORY/MARKET Level Insights
Market Insights
Market-Level & Customer NeedsBased Research
PRODUCT Level Insights
Product-Level Benefits Hierarchy Research
END CUSTOMER Usage Insights
Ethnographic and U&A Research
34 ©2013 | Optimal Strategix Group | www.optimalstrategix.com
34
34
The Power of Segmentation
Market Insights
Provide a Robust and Complete Understanding of the Customer “Firmographic”
Behavioral
• • • • •
• • • •
Manufacturing ~40,000 sqf 250-1,000 kW demand 3+ locations
• • • • • •
Solutions-Based
Manufacturing 45,000 sqf 630 kW demand Buys through a broker Establishes long-term contracts
Manufacturing 45,000 sqf 630 kW demand Buys through a broker Hassle-free support
• • • • • •
Manufacturing 41,000 sqf 870 kW demand Buys online Changes providers often Protection against the unexpected
• • • • • •
Manufacturing 41,000 sqf 300 – 900 kW Buys online Changes providers often Shops for best electricity rates
Good
• • • • •
• •
Manufacturing 38,000 sqf 300 kW demand Buys online Shops for best rates Lowest price
10-18% Topline Growth 6-8% Bottom Line Growth
Better
Best
35 35
©2013 | Optimal Strategix Group | www.optimalstrategix.com
Resulted in a fact-based understanding of each segment characteristics and profile Total Respondents: 18%
Total Spend: 24%
Spend Index: 128
Discriminating Attitudes Performance Partners
Segment Interpretation: This type of customer wants to partner directly with a cleaning chemicals company to improve cleaning results for their site(s). These customers are highly collaborative, see differences in cleaning chemical companies and would rather use a single manufacturer for all of their needs. They want the manufacturer to get to know their business and provide advice as they believe distributors provide biased information.
0.52
Enhance your company’s reputation
0.31
Cleaning chem. co’s should find ways to reduce operating costs Prefer to work with co that allows you to purchase chems, serv, equip from one source
0.6
0.53
Willing to pay more for environmentally friendly Prefer self-service tools that help me choose products and resolve problems
-0.19
-1.09
Distributors provide unbiased info Cleaning chem. co’s are all the same
©2013 | Optimal Strategix Group | www.optimalstrategix.com
Market Insights
-0.75
Further Defining Attitudes Do seek advice from cleaning chemical companies Prefer cleaning chemical companies that can enhance their cleaning results Value collaboration with sales people Believe tools and accessories are essential to enhancing cleaning results Rely on chem. cleaning co’s to comply with sanitation standards
36
Variance from the overall mean -2 +2
36
12 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Brand Was Positioned To Appeal To Target Segments And Activate Marketing Strategy Successfully
Target
To business and facility owners and managers who want more from cleaning and sanitation solutions and they seek partners who have the expertise to deliver them
Frame of Reference
Diversey is the cleaning, sanitation and hygiene solutions provider …
Point of Difference
who is the leading expert in superior and sustainable performance
PoP
Points of Difference
Brand Equity
Reasons to Believe
superior performance, results you need, enhance your reputation, right solutions, integrated product solutions, leading edge solutions, what you need when and where you need it ‘Green’ Leadership (superior knowledge & expertise) and ‘Green’ Enablement (helps transition to green)
Points of Entry
Brand Essence
37 ©2013 | Optimal Strategix Group | www.optimalstrategix.com
37
37
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Wednesday, February 27, 2013 1:15 p.m.
Abbie Griffin; ISBM Fellow, University of Utah “Gathering and Mobilizing Insight Direct from the Customer: Lessons from 'Serial Innovators'"
2:00 p.m.
Networking Break
2:30 p.m.
George Parr, Optimal Strategix, (Former CMO; Diversey) “Creating and Mobilizing Segmentation Insight to Drive Growth Strategy: A Case Study”
3:15 p.m. 3:45 p.m.
Networking Break Pam Brown, Global Manager-Customer/Market Insight; DuPont “ Mobilizing a Strategic Information Resource: A Journey in Progress”
4:30 p.m.
Wrap-up/Summary Discussion
6:00 p.m.
Networking Reception/Dinner (La Fuente Courtyard)
38
Major Methodologies and Tools that we used early in our journey to Create the Intelligence Services Center of Excellence
1. Stakeholder Needs Assessment 2. Maturity diagnostic
Pam Brown
3. Launch of a Corporate Best Practice Intelligence Cycle 4. Training to Embed best practices 5. Highlight of a few Supportive Tools A. Company and Landscape Monitoring B. Web Enabled Customer Intelligence C. Country level specific market intelligence portals 39
39
13 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Methodology # 2: Maturity Diagnostic –How Well Is A BU Practicing Intelligence ? Beginner
Process How is Intell typically conducted?
o Reactive. o Ad hoc. Asneeded basis. o Uncoordinated infor- mation purchases.
Adv Beginner o Some secondary info source collection. o Little or no analysis.
Intermediate o Regular secondary info collection / dissemination. o Centralized analysis with limited scope. o Some primary Intell effort for KITs.
Maturing o Complex market monitoring. o On-going, focused primary Intell efforts for KITs, KIQs. o Advanced analysis. o Training for relevant cross team members.
Mature o Primary and secondary Intell integrated into key business processes. o Applied to key decisions. o Future-oriented with early warning system. o Advanced training available.
Tools What tools are used to conduct Intell?
o No specific or dedicated tools.
o Dissemination of special reports.
o Collection tools in place. o Structured access to public info . o Info posted to shared files. o SWOTs/ 5 Forces analysis.
o Fully integrated content production. o Alert generation. o Info and analysis posted to Webbased portal.
o Collaboration features for end users.
Deliverables How is Intell typically delivered to users?
o Ad-hoc. o One-offs.
o Special event, market assessment or project-based reporting.
o Structured reports, news-letters. o Competitor profiles.
o Targeted, personalized alerts to key stakeholders. o General and deep-dive analysis. o Presentations to targeted audiences.
o Analyst commentary offered and solicited. o Regularly scheduled analysis and sharing. o Analysis 40 integrated into key decisions.
40
Adapted from Hedin & Thieme and Husar & Gayoso, both 2010; Herring & Leavitt, 2011.
3rd Methodology: Launch of DuPont Corporate Best Practice Intelligence Cycle
This cycle is deployed across all managing frameworks, Innovation, marketing and Sales 41
41
Moving Beyond Silo-ed Intelligence Disciplines to Holistic Intelligence To Achieve More Integrated, Impactful Insights Company (us) Focus •
Sales by product or portfolio
•
Production costs
•
Marketing activities like promotion type or spend
•
Historical customer sales or relationship data
•
Patent estate and other technology benchmarking
Category and Chain Focus Business Intelligence Key past company transaction data FOR Measurement and benchmarking to improve current performance
Competitive Intelligence
Competitor Focus •
Profiling Competitors
•
STEEP, PEST, SWOT or 4 Corners analysis
•
Product benchmarking
•
Technology benchmarking
•
War gaming and scenario planning
•
Collective intelligence
Advance understanding of intent, capabilities and activities of competitors or other industry players FOR Better strategy and tactic formulation and action
Market Intelligence Information relative to a company’s market(s) TO Determine market opportunity, penetration & development metrics
•
Industry trends
•
Technology/Patent/Regulatory Trends
•
Market size, share, segmentation
•
Leading indicators
•
Demand sensing / forecasting
•
M&A or JV activity
Customer Intelligence Information about existing or prospective customers FOR Increased understanding of preferences & behaviors
Customer Focus •
Ideation, unmet needs
•
Concept, value proposition and positioning testing
•
Needs-based segmentation
•
Pricing sensitivity
•
Awareness & image tracking
•
Product satisfaction tracking 42
42
42
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Collaboration Spaces Foster Enhanced Communication By automating the routinized tasks of CI, resources are better spent on communication
Key Benefits Birds eye view on all key aspects of market and competitive landscape including emerging threats BUSINESS X KNOWLEDGE PORTAL
Corporate Leadership
Daily gathering made exponentially more efficient
Key Intelligence Topics (KITs)
BU Leadership “Y”
Brand, Marketing, & Product Mgrs.
Time is better spent on valuable synthesis (i.e. “What does it all mean?) One-stop shopping for daily information needed in prep for customer visits; Ability to track competitor activities in response to sales tactics, etc.
Finance, MR, Marcomm/PR & CR&D Sales
43
Solving the Access to Sample: The DuPont Market Advisory Panel The DuPont Market Advisory Panel is a global community of 4000 dedicated contacts, which include •Customers/Distributors •Specifiers/End Users •Retailers •Industry Experts In key strategic markets •Alternate energy •Food •Protecting Lives and the Environment •Electronics •Construction •Transportation
Marketing leaders can investigate the attitudes, behaviors and opinions of this community using web enabled tools •
Results available instantly
•
$1/complete
•
50-75% response rate (compared to 10% for non-panelists)
•
44 languages for local customization
• •
Corporately sponsored spend and resources Panelist serve for 2 years, with 4-8 touch points/year. We provide information on their markets in return for their voice on steps in the strategic marketing process
•
44
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Thursday, February 28, 2013 7:00 a.m.
Continental Breakfast (Costa del Sol Ballroom E-H)
8:00 a.m.
Convene
8:15 a.m.
Jean Angus, Saint Gobain; Dan Adams, Advanced Industrial Marketing “Seven Practices for B2B-Optimized Customer Insights And How Saint-Gobain Implemented Them”
9:15 a.m. 9:45 a.m.
Networking Break Paulo Costa, Director, Advanced Analytics, Cisco “The Wallet, Acquisition and Retention Program at Cisco: Lessons, Pitfalls, Applications…”
10:30 a.m. 10:45 a.m.
Quick Break George Brown, Blue Canyon Partners “Mobilizing Customer Insight at 'Stage-Gate Zero'"
11:30 a.m.
Summary/Wrap-up
12:00
Adjourn
45
15 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
7 Practices for B2B–Optimized Customer Insights …and How Saint-Gobain Implemented Them Agenda for 1st Part… Dan Adams
1. 2. 3. 4. 5. 6. 7.
Begin with a customer tour when possible Interview customers using digital projectors Let customers guide your interviews Use trigger methods in customer interviews Send commercial-technical interview teams Use advanced listening and probing Add quantitative customer interviews 46
© AIM, Inc.
Practice 1. Begin with a Customer Tour When Possible
AMUSE Methodology for B2B Tours A Activity
M
U
Activity
S
Activity
E
Accelerate Activity
Faster … reduce labor costs, increase capacity
Minimize Input
Cheaper … reduce material, energy & capital
Upgrade Output
Better … fewer defects, more customer benefits
Simplify Transition
Streamline … reduce inventory & lead time
Eliminate Activity
Or combine activities … lower overall costs
47
Supplier-Directed Interview
Customer-Directed Interview
(Traditional)
(New Product Blueprinting)
1. First question First answer
What else? Better Outcomes
2. Second question Second answer More Engagement 3. Third question Third answer
No idea where they’re going!
Less Effort
48
© AIM, Inc.
16 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
5 Parts of Discovery Interviews
1. Current State 2. Problems 3. Ideal State 4. Triggered Ideas 2-3 Record Record Record Drag Questions customer on on onyellow green blue in traditional digital digital favorites digital“sticky “sticky “sticky to Q&A the notes” notes” notes” format top
5. Top Picks
49
© AIM, Inc.
Practice 5. Send commercial-technical interview teams
TechnicalCommercial Team? Team
Consultant Only?
Functional Alignment
Richer Content
Sales Rep Only?
Clarity of Purpose
Customer Willingness 50
© AIM, Inc.
7 Practices for B2B–Optimized Customer Insights …and How Saint-Gobain Implemented Them Agenda for 2nd Part…
1. 2. 3. 4. 5. 6. 7.
Jean Angus
Saint-Gobain’s innovation approach Strategically selling the “product” Finding market opportunity fit to core Commissioning the team Train, follow-up and coach Track and measure Lessons Learned
51
17 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Point 3. Finding market opportunity fit to core Workshop using Five Step Process… eXplore Market Fit
Discover Core Competency
Assess Against Market
Recognize Strengths
Combine competencies; & describe
Allows access to many markets? Rank best fit to Core
Rank to competitors; identify competencies
Identify the competitive advantages
Build Strategy from Core
Blueprint Market Needs 52
Questions to help pick the best team members… In what regions do you want to focus this market? What resources are in this region to support process? Who is the lead marketing person in this region? Who is the primary technical contact for customers? Which technical people can listen/communicate well? Who’s the sales rep for major accounts in the market ? For new markets… Who’s a hunter, not a farmer? 53
© Advanced Industrial Marketing, Inc.
Point 7. Lessons Learned
1. Lessons from the field (S-G Blueprinters) a. b.
Look for the “non-obvious” during interviews Done well, interviews let you engage customers
© Advanced Industrial Marketing, Inc.
54
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ISBM Members Meeting, February, 2013 4/22/2013
Point 7. Lessons Learned
2. Market segments a.
Pick ones where resources are available and within your strategy If existing market, consider entire value chain; schedule 1st interviews with ones you know best If new with no contacts, find industry expert
b. c.
3. Team leads and support a. Leaders with good planning and project management excel b. Sales support who are “hunters” help move faster 55 © Advanced Industrial Marketing, Inc.
Point 7. Lessons Learned
4. Process support a. Have shared information site; translate support materials in local language b. Train regional coaches
5. Interview a. b. c. d.
Have commercial and technical on interview Know and practice role beforehand Have coach on 1st interview Debrief after 56
Celebrate successes and failures… and learn from both © Advanced Industrial Marketing, Inc.
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Thursday, February 28, 2013 7:00 a.m.
Continental Breakfast (Costa del Sol Ballroom E-H)
8:00 a.m.
Convene
8:15 a.m.
Jean Angus, Saint Gobain; Dan Adams, Advanced Industrial Marketing “Seven Practices for B2B-Optimized Customer Insights And How Saint-Gobain Implemented Them”
9:15 a.m. 9:45 a.m.
Networking Break Paulo Costa, Director, Advanced Analytics, Cisco “The Wallet, Acquisition and Retention Program at Cisco: Lessons, Pitfalls, Applications…”
10:30 a.m. 10:45 a.m.
Quick Break George Brown, Blue Canyon Partners “Mobilizing Customer Insight at 'Stage-Gate Zero'"
11:30 a.m.
Summary/Wrap-up
12:00
Adjourn
57
19 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Paolo Costa
Where to Compete
How to Compete
Identify sub markets of interest: countries, industries, subindustries, empl-size, etc, on which CISCO needs to focus
Determine the optimum marketing mix for each sub-market for a given set of marketing objectives (Wallet Share Improvement, Acquisition and Retention).
Analytical Models that support it: Portfolio analysis with dimensions such as market attractiveness, market position and competitive strengths
Map WAR Objectives
Define/Optimize Mktg Mix
Identify in each priority sub market what is the core marketing objective associated with each company
Determine the appropriate marketing mix (4 Ps) for each sub market and for each core marketing objective
Analytical Models that support it: Bi-Dimensional or Multi-dimensional Game Boards
Analytical Models that support it: Purchase Behavior Segmentation Propensity to Buy Market Basket Price Optimization Partner Optimization W
A
R
….
…
…
Promotion
.
…
..
Price
..
..
.
Place
……
…
..
Product
Ex.: each company in the sub market S1 will be assign to one WAR Game Board Cell
Customer Valuation Models Segmentation Models
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© 2010 Cisco and/or its affiliates. All rights reserved.
Forecasting, Economic Analysis & Models Wallet Share Improvement, Acquisition Retention Product
P2B, Refresh Cycle, Market Basket, Adoption Curve
Promotion
“Marketing Mix Optimization”, Brand Optimization, Funnel Stage Identification
Price
Price Optimization, Price & Adoption Curve
Place
Partner Led, Partner Optimization, Partner Wallet Share Customer & Prospects Valuation Models (Wallet & LTV) Customers and Prospects Segmentation Model
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© 2010 Cisco and/or its affiliates. All rights reserved.
How can we verify if a predictive model produces the expected results?
1
Companies from 2 the market in study -+ + -- - - +++ - - - +++ -- --- - +++ - + + ++ ---++ +++ ++ +++ + ++
1. Start with all companies from the market in study; 2. Use the model to score companies on likelihood of responding to the action; 3. Randomly select companies to be part of the control group; 4. To create the target group select companies with the highest scores (and which are not already in the control group); 5. Merge both groups to create a single list for action, but hide the scores and the group associated with each company. (This allows the analysis of the model independently of the effect of the marketing actions that will follow);
4
3 -
--
---
+++
+
++
Control group (random)
5
+++ +++
+++ +++
!
!
6
List of companies for actions
7. When ready to analyse results separate each company back to its original group;
7
8. Compare success metrics from each group.
8
-
-+++
---
+
Control group
+++
Target group (only highest scores)
!
!
6. Use the list in marketing actions (may include touches: !);
© 2010 Cisco and/or its affiliates. All rights reserved.
+++ - - -
++
+++ +++
+++ +++
+++
Target group
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20 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
How can I evaluate a segmentation model? Segmentation Effectiveness Criteria
•
•
•
•
• •
Identifiability • The ability to identify the customers in each segment using available variables. Substantiality • The size of each segment need to be a large enough portion of the market to ensure the profitability of target marketing programs. Accessibility • The ability to reach the targeted segments through promotional or distributional offers Stability • If the segments maintain their characteristics for a reasonable time horizon Responsiveness • If the segments respond uniquely to market actions targeted at them Actionability • Segments are actionable if their identification provides guidance for decisions on the effective specification of marketing actions.
Source: Frank, Messy and Wind
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© 2010 Cisco and/or its affiliates. All rights reserved.
ISBM Members Meeting, February 27-28, 2013 Renaissance Tampa International Plaza Hotel Thursday, February 28, 2013 7:00 a.m.
Continental Breakfast (Costa del Sol Ballroom E-H)
8:00 a.m.
Convene
8:15 a.m.
Jean Angus, Saint Gobain; Dan Adams, Advanced Industrial Marketing “Seven Practices for B2B-Optimized Customer Insights And How Saint-Gobain Implemented Them”
9:15 a.m. 9:45 a.m.
Networking Break Paulo Costa, Director, Advanced Analytics, Cisco “The Wallet, Acquisition and Retention Program at Cisco: Lessons, Pitfalls, Applications…”
10:30 a.m. 10:45 a.m.
Quick Break George Brown, Blue Canyon Partners “Mobilizing Customer Insight at 'Stage-Gate Zero'"
11:30 a.m.
Summary/Wrap-up
12:00
Adjourn
62
George Brown
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21 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
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65
Our Objectives – Better Enable Members to: Better understand the nature of "Insight" itself --the places/people it comes from, processes for gaining it, Learn and deploy new frameworks, tools, and approaches to getting and mobilizing Insight from diverse sources: Customers, Markets, More… Gain know-how from ISBM Member cases: What works and what doesn’t Plenty of time to learn from one another, build connections and dialog.. TM
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22 (C) 2013, ISBM - Penn State
ISBM Members Meeting, February, 2013 4/22/2013
Thanks to all of you and our speakers! The ISBM Spring Meeting From Data, to Insight, to Action:
Mobilizing Customer and Market Insight to Drive Profitable Growth: B-to-B See you at our 30th Anniversary Meeting, September 24-25, 2013 at Penn State! • Thank you for being with us, • Sharing your Insight • ...and your support of ISBM Safe home!
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23 (C) 2013, ISBM - Penn State
