from marketing to sales
FROM MARKETING TO SALES
Reginald W. Goeke, Ed.D. Market Value Solutions 814-234-2486 [email protected]
What is Value?
Why is it important to business development?
How does it serve as a key bridge from marketing to sales?
4 Key Value Metrics
MVS
The need to shift from VOC to VOM (Voice of the Market) How to use value metrics to generate sales insights
A Case Study Based on Crop Protection
Critical-to-Quality factors (CTQs)
Competitive positioning
Loyalty and NPS
Targeting competitor vulnerabilities
2
Customer
Satisfaction
Customer
Satisfaction
Why?
Customer
Satisfaction
Customer
= VALUE
Satisfaction
Why?
Example From an Everyday Experience
Quality
Quality
Value
=
•Worth it? • Justifiable price relative to product performance • Delivering best value in the industry • Providing best productivity for the money
Market Share
Customer Value Quality Product/Service Offering Product Features
Product Reliability
Product Durability
Problem Resolution
Customer Acquisition
Corp. Image
Customer Service/Support Process Effectiveness
Service Efficiency
Customer Loyalty
Price
Accurate
Fair
Competitive
Channel Partners (e.g., Dealers, Brokers) Sales/Service Support
Accessible Convenient
Requires a shift in measurement from Voice of the Customer (VOC) to Voice of the Market (VOM) 10
Customer Satisfaction Data Net Promoter Data Customer Value Data No quantitative data – just informal feedback
Market Value Metrics Competitive Value Matrix
Customer Value Model
Product 1/Market A
.40
• Numbers Indicate Relative Importance • CQI = Customer Quality Index
Driver 2
Driver 3
Driver 4
Driver 5
Driver 6
Driver 7
.25
• Price = Price Index
.15
.10
.05
.03
.02
CQI
.50
.55
Image
.20
Value
.25
Price
.30
R2 = .80
.70
High
Expensive Relationship
CUSTOMER QUALITY INDEX
Driver 1
Acquisition LOYALTY Retention
Product 1/Market A
C
E
D
Poor Value
Discount Relationship
PRICE
Product 1/Market A
17%
Outstanding 2
28%
Fence Sitters 3
19%
30%
Poor Value 5 6%
Low
Discount Relationship 4
Poor Value
Low
CUSTOMER QUALITY INDEX
CUSTOMER QUALITY INDEX
High
Outstanding Value
Outstanding 1
High
Expensive Relationship
Outstanding Value
Outstanding 1
Fence Sitters 2
Poor Value 3
23%
48%
14% Poor Value 4 Poor Value 5 0.1%
Discount Relationship
PRICE
High
Competitor Vulnerability Matrix
Product 1/Market A Expensive Relationship
XYZ
B
Low
High
A: 7.24 B: 7.62 C: 8.38 D: 6.87 E: 4.58 XYZ: 8.75
A
Low
Customer Loyalty Matrix
Image
Outstanding Value
Low
15%
Poor Value
Low
Discount Relationship
PRICE
High
CTQ 2
?
?
CTQ 3
?
CTQ 4
?
CTQ 5
?
CTQ 6
?
CTQ 7
?
What Factors are Critical-toQuality for your customers? What order would they fall into?
Quality
Image
Price
?
?
?
Value Which is more important – Quality or Price? How much weight would your customers assign to each?
Acquisition Market Share Retention
CTQ 1
13
High
Expensive Relationship
Outstanding Value
Competitor 1
Quality Evaluation
Positive Value Performance Gap
Your Company
Competitor 4
Quality = 8/10 Price = 8/10
Negative Value Performance Gap
Your Company
Competitor 3 Competitor 2
Low © 2011 Market Value Solutions
Poor Value
Low
Not for Distribution without Permission
Discount Relationship
Price Evaluation
High 14
Customer Loyalty Matrix
Competitor Vulnerability Matrix
NPS = 73
NPS = 12
NPS = - 58 NPS = - 45
15
Internal interviews with key individuals (provides organizational view of VOM)
External interviews with customers/prospects
Focus groups
Depth interviews
Questionnaire development
Fielding of VOM survey
Analysis
Market Value Model – Critical-to-Quality Factors & their Importance
Competitive Value Matrix – Your Competitive Value Proposition
Customer Loyalty Matrix – Enhance loyalty of current customers
Competitive Vulnerability Matrix – How to target competitors’ customers
Linkage of VOM to sales and marketing plans
Value-Adding Opportunities Based on Insights
Our customers only
Our customers and customers of our competitors We don’t systematically collect quantitative data at all
A Case Study Based On Crop Protection
Market Value Model Crop Protection/Farmers Safe & Convenient
.37
Reliability/ Durability
.29
Manufacturer Service & Support
.25
Dealer Service
.09
Local Business Support
NS*
Effective Control
NS*
Quality
.47
Value Reputation
.38
Price
.15
* Not Significant
MVS
Derived Vs. Stated Importance Crop Protection/Farmers
MVS
Stated Importance
Derived Importance
Combination of Stated and Derived Importance
We don’t systematically determine what’s most important
Market-Perceived Value Proposition Radar Screen High
Quality Evaluation
Expensive Relationship
Outstanding Value
Alpha Co Bravo Hotel Golf Echo India Foxtrot
Average
Delta
Charlie
Poor Value Low Low
Discount Relationship Average
High
Price Satisfaction
MVS
Two Views of a Value Map High
Alpha Co Bravo Hotel Golf Echo India Foxtrot
Average
Delta
Average
Price Satisfaction
Delta India
Hotel
High
Bravo
Golf
Foxtrot
Charlie
Discount Relationship
Poor Value
Discount Relationship
Poor Value
Outstanding Value
Alpha
Average
Charlie
Low Low
High Expensive Relationship
Outstanding Value
Quality Evaluation
Quality Evaluation
Expensive Relationship
Low High
Average
Low
Actual Price
MVS
How Does the Sales Team Actually Use This Information?
CTQ Value Gap Priorities
Safe & Convenient
0.37
Reliability/Durability
0.29
Man Service & Support
0.25
Dealer Service
0.08
Local Business Support
0.00
Effective Control
0.00
8.31 7.89 7.68 8.00 7.85 7.95
7.59 7.22 5.30 7.59 7.09 6.95
5.89 6.35 4.40 7.79 7.72 7.16
8.29 7.17 6.15 8.55 7.14 7.50
7.10 7.66 4.76 8.23 7.50 8.10
Alpha Co Advantage*
7.49 6.14 4.13 7.12 6.20 6.29 Parity
7.98 7.44 3.93 8.00 6.20 6.67
6.70 7.17 6.13 7.34 6.75 7.22
6.96 7.25 5.09 7.99 6.87 7.02
1.21 0.23 2.93 -0.23 0.35 -0.15
Gap Importance
Gap
India
Hotel
Golf
Foxtrot
Echo
Delta
Charlie
Bravo
Alpha Co
CTQ Factors
Importance
Based on Targeted Competitor
0.45 0.07 0.73 -0.02 0.00 0.00
Alpha Co Disadvantage
What if…
MVS
Market-Perceived Value Proposition What if…?
8.31 7.89
7.68 8.00 7.85 7.95
MVS
Market-Perceived Value Proposition What if…? High Expensive Relationship
Outstanding Value
7.89
9.00 7.68 8.00 7.85 7.95
Quality Evaluation
8.31
Alpha Co Bravo Hotel Golf Echo India Foxtrot
Average
Delta
Charlie
Poor Value Low Low
Discount Relationship Average
High
Price Satisfaction
MVS
Leveraging Value Advantages Manufacturing Service & Support
Manufacturer Service & Support Product bundling to lower costs Providing manufacturer field reps who provide good crop protection advice Being a manufacturer who keeps you informed of the latest developments in crop protection Financing from manufacturer Manufacturer provides all my crop protection needs When you need it most the manufacturer will stand behind the product Providing manufacturer sales reps who call on you personally
Gap Importance
Gap
India
Hotel
Golf
Foxtrot
Echo
Delta
Charlie
Bravo
Alpha Co
Importance
Performance Criteria Priorities
0.805
7.82
4.83
4.25
5.83
4.24
3.94
3.29
5.58
4.48
3.58
2.88
0.796
7.67
5.35
4.17
6.43
4.45
3.75
4.73
6.53
5.61
3.22
2.56
0.795
7.34
5.46
4.75
7.33
4.96
4.55
4.82
6.00
5.44
2.38
1.89
0.793 0.743
8.29 7.41
4.57 5.40
4.00 3.00
5.50 6.50
4.24 5.48
4.33 3.84
3.86 3.65
5.50 6.47
4.22 5.33
4.05 1.93
3.21 1.43
0.737
8.20
6.04
6.00
8.00
5.91
5.00
5.39
6.65
6.11
2.29
1.69
0.712
7.47
5.08
5.50
7.00
4.40
4.32
3.76
6.44
4.92
3.07
2.19
MVS
Value & Customer Loyalty Using the Metrics of Value To Leverage Loyalty And Improve Net Promoter Scores MVS
Alpha Co Loyalty Matrix How to Improve Net Promoter Scores Expensive Relationship
Outstanding Value
27% 1.0 PV
25%
AV 45%
NPS=0
NPS=73 CTQ Factors
NPS=33
Safe & Convenient
4% NPS= - 100
Reliability/Durability Man Service & Support Dealer Service Local Business Support Effective Control
Poor Value 0.1 0.1
OV
AV
ER
PV
Gap Importance
ER
Gap
OV Importance
Quality Evaluation
1.9
0.37 0.29 0.25 0.09 0.00 0.00
8.83 8.34 8.66 8.95 8.83 9.14
8.19 7.94 7.20 8.28 8.53 7.63
7.86 7.52 7.70 7.51 6.63 7.63
8.57 6.25 4.60 2.83 4.17 7.49
0.63 0.40 1.46 0.67 0.30 1.51
0.23 0.12 0.36 0.06 0.00 0.00
Discount Relationship 1.0
Price Evaluation
1.9
Current overall NPS = 29 If AV2 could be improved to an NPS of 60, The overall NPS would improve to 41
MVS
Value & Customer Acquisition Using the Metrics of Value To Target Key Competitors Based Upon Their Vulnerabilities MVS
Capitalize On Competitor Vulnerabilities List of Competitors Low Hanging 1.6 Expensive Fruit Relationship
Outstanding Value
Evaluation
Strategic Target
Bravo Charlie Delta Echo Foxtrot Golf Hotel India
OV 27%
1.0
Quality
PV3 14%
PV1 13%
OV 37% 0% 100% 29% 35% 47% 50% 56%
DR 24% 0% 0% 21% 6% 20% 6% 7%
PV1 25% 60% 0% 29% 41% 27% 25% 22%
PV2 3% 40% 0% 8% 6% 0% 6% 7%
PV3 10% 0% 0% 13% 12% 7% 13% 7%
Total 100% 100% 100% 100% 100% 100% 100% 100%
Echo CTQ Vulnerabilities
DR 27%
PV2 19%
0.4 0.4
% of Customers By Value Group
Poor Value
Discount Relationship
1.0
CTQs Safe & Convenient Reliablility/Durabililty Manufacturer Service & Support Dealer Service Local Business Support Effective Control
DR & PV! Ratings 6.36 7.58 4.38 7.70 7.22 7.90
If calling on a farmer using Echo, you have a 50% + probability of hitting a sore spot if you talk to him about the manufacturer’s service and support, or about the convenience of using the product.
1.6
Price Evaluation
MVS
Detailed Echo Vulnerabilities Echo Vulnerabilities
Manufacturer Service & Support
DR & PV1 Ratings
Product bundling to lower costs
4.86
Providing manufacturer field reps who provide good crop protection advice
3.17
Being a manufacturer who keeps you informed of the latest developments in crop protection Financing from manufacturer
5.12 5.33
Manufacturer provides all my crop protection needs
4.5
When you need it most the manufacturer will stand behind the product
4.3
Providing manufacturer sales reps who call on you personally
3.22
MVS
Value-Based Selling:
MVS
Shifts the emphasis from Price to the Quality of Benefits provided Leads to the development of new insights based on those factors that are Critical-to-Quality Creates a “pull” for data from sales to marketing Leads to a more dynamic sales/marketing interface.
To download complimentary copies of articles on topics related to today’s presentation, go to: http://marketvaluesolutions.com/articles.htm Feel free to contact me: Reg Goeke 814-234-2486 [email protected]
Thank You!
Reginald W. Goeke, Ed.D. Market Value Solutions 814-234-2486 [email protected]
What is Value?
Why is it important to business development?
How does it serve as a key bridge from marketing to sales?
4 Key Value Metrics
MVS
The need to shift from VOC to VOM (Voice of the Market) How to use value metrics to generate sales insights
A Case Study Based on Crop Protection
Critical-to-Quality factors (CTQs)
Competitive positioning
Loyalty and NPS
Targeting competitor vulnerabilities
2
Customer
Satisfaction
Customer
Satisfaction
Why?
Customer
Satisfaction
Customer
= VALUE
Satisfaction
Why?
Example From an Everyday Experience
Quality
Quality
Value
=
•Worth it? • Justifiable price relative to product performance • Delivering best value in the industry • Providing best productivity for the money
Market Share
Customer Value Quality Product/Service Offering Product Features
Product Reliability
Product Durability
Problem Resolution
Customer Acquisition
Corp. Image
Customer Service/Support Process Effectiveness
Service Efficiency
Customer Loyalty
Price
Accurate
Fair
Competitive
Channel Partners (e.g., Dealers, Brokers) Sales/Service Support
Accessible Convenient
Requires a shift in measurement from Voice of the Customer (VOC) to Voice of the Market (VOM) 10
Customer Satisfaction Data Net Promoter Data Customer Value Data No quantitative data – just informal feedback
Market Value Metrics Competitive Value Matrix
Customer Value Model
Product 1/Market A
.40
• Numbers Indicate Relative Importance • CQI = Customer Quality Index
Driver 2
Driver 3
Driver 4
Driver 5
Driver 6
Driver 7
.25
• Price = Price Index
.15
.10
.05
.03
.02
CQI
.50
.55
Image
.20
Value
.25
Price
.30
R2 = .80
.70
High
Expensive Relationship
CUSTOMER QUALITY INDEX
Driver 1
Acquisition LOYALTY Retention
Product 1/Market A
C
E
D
Poor Value
Discount Relationship
PRICE
Product 1/Market A
17%
Outstanding 2
28%
Fence Sitters 3
19%
30%
Poor Value 5 6%
Low
Discount Relationship 4
Poor Value
Low
CUSTOMER QUALITY INDEX
CUSTOMER QUALITY INDEX
High
Outstanding Value
Outstanding 1
High
Expensive Relationship
Outstanding Value
Outstanding 1
Fence Sitters 2
Poor Value 3
23%
48%
14% Poor Value 4 Poor Value 5 0.1%
Discount Relationship
PRICE
High
Competitor Vulnerability Matrix
Product 1/Market A Expensive Relationship
XYZ
B
Low
High
A: 7.24 B: 7.62 C: 8.38 D: 6.87 E: 4.58 XYZ: 8.75
A
Low
Customer Loyalty Matrix
Image
Outstanding Value
Low
15%
Poor Value
Low
Discount Relationship
PRICE
High
CTQ 2
?
?
CTQ 3
?
CTQ 4
?
CTQ 5
?
CTQ 6
?
CTQ 7
?
What Factors are Critical-toQuality for your customers? What order would they fall into?
Quality
Image
Price
?
?
?
Value Which is more important – Quality or Price? How much weight would your customers assign to each?
Acquisition Market Share Retention
CTQ 1
13
High
Expensive Relationship
Outstanding Value
Competitor 1
Quality Evaluation
Positive Value Performance Gap
Your Company
Competitor 4
Quality = 8/10 Price = 8/10
Negative Value Performance Gap
Your Company
Competitor 3 Competitor 2
Low © 2011 Market Value Solutions
Poor Value
Low
Not for Distribution without Permission
Discount Relationship
Price Evaluation
High 14
Customer Loyalty Matrix
Competitor Vulnerability Matrix
NPS = 73
NPS = 12
NPS = - 58 NPS = - 45
15
Internal interviews with key individuals (provides organizational view of VOM)
External interviews with customers/prospects
Focus groups
Depth interviews
Questionnaire development
Fielding of VOM survey
Analysis
Market Value Model – Critical-to-Quality Factors & their Importance
Competitive Value Matrix – Your Competitive Value Proposition
Customer Loyalty Matrix – Enhance loyalty of current customers
Competitive Vulnerability Matrix – How to target competitors’ customers
Linkage of VOM to sales and marketing plans
Value-Adding Opportunities Based on Insights
Our customers only
Our customers and customers of our competitors We don’t systematically collect quantitative data at all
A Case Study Based On Crop Protection
Market Value Model Crop Protection/Farmers Safe & Convenient
.37
Reliability/ Durability
.29
Manufacturer Service & Support
.25
Dealer Service
.09
Local Business Support
NS*
Effective Control
NS*
Quality
.47
Value Reputation
.38
Price
.15
* Not Significant
MVS
Derived Vs. Stated Importance Crop Protection/Farmers
MVS
Stated Importance
Derived Importance
Combination of Stated and Derived Importance
We don’t systematically determine what’s most important
Market-Perceived Value Proposition Radar Screen High
Quality Evaluation
Expensive Relationship
Outstanding Value
Alpha Co Bravo Hotel Golf Echo India Foxtrot
Average
Delta
Charlie
Poor Value Low Low
Discount Relationship Average
High
Price Satisfaction
MVS
Two Views of a Value Map High
Alpha Co Bravo Hotel Golf Echo India Foxtrot
Average
Delta
Average
Price Satisfaction
Delta India
Hotel
High
Bravo
Golf
Foxtrot
Charlie
Discount Relationship
Poor Value
Discount Relationship
Poor Value
Outstanding Value
Alpha
Average
Charlie
Low Low
High Expensive Relationship
Outstanding Value
Quality Evaluation
Quality Evaluation
Expensive Relationship
Low High
Average
Low
Actual Price
MVS
How Does the Sales Team Actually Use This Information?
CTQ Value Gap Priorities
Safe & Convenient
0.37
Reliability/Durability
0.29
Man Service & Support
0.25
Dealer Service
0.08
Local Business Support
0.00
Effective Control
0.00
8.31 7.89 7.68 8.00 7.85 7.95
7.59 7.22 5.30 7.59 7.09 6.95
5.89 6.35 4.40 7.79 7.72 7.16
8.29 7.17 6.15 8.55 7.14 7.50
7.10 7.66 4.76 8.23 7.50 8.10
Alpha Co Advantage*
7.49 6.14 4.13 7.12 6.20 6.29 Parity
7.98 7.44 3.93 8.00 6.20 6.67
6.70 7.17 6.13 7.34 6.75 7.22
6.96 7.25 5.09 7.99 6.87 7.02
1.21 0.23 2.93 -0.23 0.35 -0.15
Gap Importance
Gap
India
Hotel
Golf
Foxtrot
Echo
Delta
Charlie
Bravo
Alpha Co
CTQ Factors
Importance
Based on Targeted Competitor
0.45 0.07 0.73 -0.02 0.00 0.00
Alpha Co Disadvantage
What if…
MVS
Market-Perceived Value Proposition What if…?
8.31 7.89
7.68 8.00 7.85 7.95
MVS
Market-Perceived Value Proposition What if…? High Expensive Relationship
Outstanding Value
7.89
9.00 7.68 8.00 7.85 7.95
Quality Evaluation
8.31
Alpha Co Bravo Hotel Golf Echo India Foxtrot
Average
Delta
Charlie
Poor Value Low Low
Discount Relationship Average
High
Price Satisfaction
MVS
Leveraging Value Advantages Manufacturing Service & Support
Manufacturer Service & Support Product bundling to lower costs Providing manufacturer field reps who provide good crop protection advice Being a manufacturer who keeps you informed of the latest developments in crop protection Financing from manufacturer Manufacturer provides all my crop protection needs When you need it most the manufacturer will stand behind the product Providing manufacturer sales reps who call on you personally
Gap Importance
Gap
India
Hotel
Golf
Foxtrot
Echo
Delta
Charlie
Bravo
Alpha Co
Importance
Performance Criteria Priorities
0.805
7.82
4.83
4.25
5.83
4.24
3.94
3.29
5.58
4.48
3.58
2.88
0.796
7.67
5.35
4.17
6.43
4.45
3.75
4.73
6.53
5.61
3.22
2.56
0.795
7.34
5.46
4.75
7.33
4.96
4.55
4.82
6.00
5.44
2.38
1.89
0.793 0.743
8.29 7.41
4.57 5.40
4.00 3.00
5.50 6.50
4.24 5.48
4.33 3.84
3.86 3.65
5.50 6.47
4.22 5.33
4.05 1.93
3.21 1.43
0.737
8.20
6.04
6.00
8.00
5.91
5.00
5.39
6.65
6.11
2.29
1.69
0.712
7.47
5.08
5.50
7.00
4.40
4.32
3.76
6.44
4.92
3.07
2.19
MVS
Value & Customer Loyalty Using the Metrics of Value To Leverage Loyalty And Improve Net Promoter Scores MVS
Alpha Co Loyalty Matrix How to Improve Net Promoter Scores Expensive Relationship
Outstanding Value
27% 1.0 PV
25%
AV 45%
NPS=0
NPS=73 CTQ Factors
NPS=33
Safe & Convenient
4% NPS= - 100
Reliability/Durability Man Service & Support Dealer Service Local Business Support Effective Control
Poor Value 0.1 0.1
OV
AV
ER
PV
Gap Importance
ER
Gap
OV Importance
Quality Evaluation
1.9
0.37 0.29 0.25 0.09 0.00 0.00
8.83 8.34 8.66 8.95 8.83 9.14
8.19 7.94 7.20 8.28 8.53 7.63
7.86 7.52 7.70 7.51 6.63 7.63
8.57 6.25 4.60 2.83 4.17 7.49
0.63 0.40 1.46 0.67 0.30 1.51
0.23 0.12 0.36 0.06 0.00 0.00
Discount Relationship 1.0
Price Evaluation
1.9
Current overall NPS = 29 If AV2 could be improved to an NPS of 60, The overall NPS would improve to 41
MVS
Value & Customer Acquisition Using the Metrics of Value To Target Key Competitors Based Upon Their Vulnerabilities MVS
Capitalize On Competitor Vulnerabilities List of Competitors Low Hanging 1.6 Expensive Fruit Relationship
Outstanding Value
Evaluation
Strategic Target
Bravo Charlie Delta Echo Foxtrot Golf Hotel India
OV 27%
1.0
Quality
PV3 14%
PV1 13%
OV 37% 0% 100% 29% 35% 47% 50% 56%
DR 24% 0% 0% 21% 6% 20% 6% 7%
PV1 25% 60% 0% 29% 41% 27% 25% 22%
PV2 3% 40% 0% 8% 6% 0% 6% 7%
PV3 10% 0% 0% 13% 12% 7% 13% 7%
Total 100% 100% 100% 100% 100% 100% 100% 100%
Echo CTQ Vulnerabilities
DR 27%
PV2 19%
0.4 0.4
% of Customers By Value Group
Poor Value
Discount Relationship
1.0
CTQs Safe & Convenient Reliablility/Durabililty Manufacturer Service & Support Dealer Service Local Business Support Effective Control
DR & PV! Ratings 6.36 7.58 4.38 7.70 7.22 7.90
If calling on a farmer using Echo, you have a 50% + probability of hitting a sore spot if you talk to him about the manufacturer’s service and support, or about the convenience of using the product.
1.6
Price Evaluation
MVS
Detailed Echo Vulnerabilities Echo Vulnerabilities
Manufacturer Service & Support
DR & PV1 Ratings
Product bundling to lower costs
4.86
Providing manufacturer field reps who provide good crop protection advice
3.17
Being a manufacturer who keeps you informed of the latest developments in crop protection Financing from manufacturer
5.12 5.33
Manufacturer provides all my crop protection needs
4.5
When you need it most the manufacturer will stand behind the product
4.3
Providing manufacturer sales reps who call on you personally
3.22
MVS
Value-Based Selling:
MVS
Shifts the emphasis from Price to the Quality of Benefits provided Leads to the development of new insights based on those factors that are Critical-to-Quality Creates a “pull” for data from sales to marketing Leads to a more dynamic sales/marketing interface.
To download complimentary copies of articles on topics related to today’s presentation, go to: http://marketvaluesolutions.com/articles.htm Feel free to contact me: Reg Goeke 814-234-2486 [email protected]
Thank You!
