3. Presentation Goal
• Get a basic understanding of how you can use
segmentation market research and the
customer insights gained to implement small
changes within your organization
4. Presentation Agenda
• Air Filtration Business Overview
• Review our Customer Insights Approach and Process
• Business Case Example: Air Filtration; Using Needs-
Based Segmentation Research to take Action
• Business Case Example: Air Filtration; Using a VOC
Business Survey to take Action
• Summary
5. Air Filtration
Strategy
• Help customers achieve air quality and plant performance
goals with products and solutions for Gas Turbine Inlet
Filtration and Industrial Filtration.
• With more than 40 years in air quality management expertise
to serve our customers, we are committed to improving power
plant performance and helping the world’s infrastructures run
cleaner, smarter and more efficiently.
Products
• Gas Turbine Inlet Systems
• Gas Turbine Inlet Filters
• Bags & Cages
• Pleated Filters
• Membrane Technology
• Performance Fabrics & Micro Filtration
• Baghouse Accessories & Replacement Parts
• Acoustic & Impulse Cleaning Systems
7. Market
Knowledge
Segmentation
& Targeting
Value
Creation
Go-To-Market Process
Our Approach & Process
Commercial
Activation
• Market Trends
• Competitive
Landscape
• Customer Needs
• Segment Profiling
• Customer
preferences
• Value Proposition
• Go to Market Plan
• Competitive
Positioning
• Pricing
• Marketing Execution
• Branding
8. Market
Knowledge
Segmentation
& Targeting
Value
Creation
Go-To-Market Process
Our Approach & Process
Commercial
Activation
• Market Trends
• Competitive
Landscape
• Customer Needs
• Segment Profiling
• Customer
preferences
• Value Proposition
• Go to Market Plan
• Competitive
Positioning
• Pricing
• Marketing Execution
• Branding
9. Segmentation v.s. Classification
•Needs-based Segmentation
•Primary research driven
•Survey customer on
needs, attitudes, usage
– Financing use
– Packages of service
– Price sensitivity
– Relationship management
•Classification
•Secondary data driven
•Create clusters based on like
performing data
– Credit performance
– Firmographics
– Geography
10. Segmentation answers the critical
questions …
•Who are our most profitable customers?
•How many more prospects look like them?
•What are their key needs / benefits?
•How do we serve them better?
•Resource targeting
– Leads, rep activity, approval, servicing
•Solution tailoring
– Price, distribution, communication /
advertising
– Products, Services, Innovation
12. Best Practice #1 - Segmentation
1. Needs Based Segmentation Research
Objective:
Understand what drives our customer to purchase
our products and what are their key needs
13. Segmentation Study Structure
4 Studies across our product lines in 2009
Global study included customers in United
States, Germany, Latin America, Western
Europe, and Middle East
Over 500 respondents (Both current
customers and non-customers)
Multi-channel (phone, web survey, LinkedIn)
14. 1. Price
2. Service & Tech
Support
3. Sales Support &
Relationship
4. Warranty/
Guarantees
5. Delivery
6. Product Features
7. Productivity
Improvement
8. Brand Rep/ Expert
Opinion
Identified 8 key
purchase drivers
(in priority order of
importance)
Purchase Drivers
What drives customers to buy
from suppliers like us?
15. Segmentation Common Insights
Build awareness
and overcome
the status quo
Product
durability and
reputation is
important
Low cost to
serve model is
needed
Meeting
commitments is
key (delivery,
quality,
technology)
16. Risk averse
“Do it for me”
Sales Support
Delivery
Expert Op /
Brand
Convenience
*Key
Characteristics
Performance
Highly technical
Seek innovation
Product Features
Productivity Impr.
*Major
Influences
Relationship
Improve operation
Value technology
Svc & Tech Support
Expert Op / Brand
Warranty /
Guarantee
Price
Lowest price
Basic products
Price
Delivery
Emerging Segments
17. Business
Segments
Segmentation Tools
Key Personas Within Each
Business Segment
• Plant Managers
• Chief Engineers
• Project Manager
• Sourcing Manager
• AP Finance Manager
• Operations Manager
Price Buyer
Convenience
Buyer
Operations Manager
Plant Manager
Each with their own needs and purchasing behaviors….
18. Developing multi-level messaging for
greatest impact Volkswagen Example
Safe & Reliable
Innovative, Sustainability, Re
iability
“Superior value, social
responsibility and a practical
commitment to sustainability”
Communicating to those who look
at safety first
• “The people want a mini-van
that drives like a Volkswagen”
Routan
• Communicating the key business objectives
through power positional statements
• Recognizing and using the industry needs
within its messaging
• Having a clear understanding of your
key segments
• Messaging to their key needs, traits, and
concerns
• Focusing on product and service detailed
information
• Cater to the targeted personas and
segments
Business level
Segment level
Product/Service level
19. Segmentation Action Summary
Identified our most profitable segments
Tagged our database of customers
Developed segmentation quick reference sheets and personas
to help our IS team in improved identification of customer
needs and influencing the purchase decision
Drove strategic organizational structure changes to support a
cost to serve model and improve ease of doing business
Used segmentation to help drive more targeted marketing
campaigns
21. Best Practice #2 – Customer Expectations
1. Needs Based Segmentation Research
2. Operational Business Survey
Sales Aids & Marketing Tools
More Targeted Value Propositions
NPI Support
Business Process Improvements
Customer Journey Map
Resulted in:
Objective: To define what customers expected
out of a supplier across and establish baselines
Objective: Understand what drives our customer to purchase our products and
what are their key needs
22. 1. Validate - Validate purchase drivers from segmentation
study
2. Baseline Customer Expectations – Quantifiable
definitions related to responsiveness and customer
expectations
3. Retention – Identify actions to keep customers longer
and drive more profitable business
4. Win-Back – Identify why customers leave suppliers
5. Competitive Intel – Gain pertinent intel and
benchmarking
Business Survey Objectives & Goals
24. Survey Structure
Completed late March 2011
Survey conducted double-blind, interview-style
352 responses, mostly US and LAS
Cross section of customers v.s. potential
Only 10% of respondents were from customer list
25. Responsiveness Expectations:
24 hour turnaround from their supplier on any question or issue
they may have
Live person every time they call a suppliers
Order status information available when they call
Customer Retention/ Win-back
Leave their suppliers primarily due to better pricing from another
Due to a poor customer experience
Survey Hypothesis
26. Results: Validated Key Purchase Drivers
73%
72%
58%
57%
55%
50%
46%
44%
41%
37%
33%
33%
28%
27%
26%
26%
20%
23%
35%
30%
34%
37%
36%
37%
40%
44%
37%
37%
36%
37%
37%
38%
5%
4%
10%
8%
11%
16%
15%
17%
17%
23%
25%
27%
26%
28%
26%
5%
Quality
Delivery
Responsiveness
ROI
Tech Support
Product Perf Guaranty
Supplier Reputation
Customer Service
Sales Support
Quote Cycle Time
Single Point of Contact
Low Purchase Price
Web Capabilities
Flexible Warranty Terms
Supplier used for a long time
Local inventory
Very important Somewhat important Neither Somewhat unimportant Very unimportant
27. Responsiveness
Customers expect 24 hour turnaround
from their supplier on any question or
issue they may have
Customers expect to get a live person
every time they call a suppliers
Customer Retention/
Win-back
Customers leave their suppliers
primarily due to better pricing from
another
Customers leave their current supplier
due to a poor customer experience
Survey Results Summary
Quotes – 67% expect 24 hour turn
Delivery – 82% expect 2 weeks or less
Cust Serv – 89% want answer in < 24 hrs
Tech Support – +30% want answer on the
phone
Price – 63% leave due to price
Cust Serv – 49% of product line A
customers leave because of customer
service issues
Product Quality – 53% of product line B
customers leave due to poor quality
Customers Expect
Retention Drivers
28. Resulted In Actions:
Business Metrics (OTD, Quote &
CS Responsiveness etc.)
Cost out = Competitiveness
Process Improvements
Product Quality Improvements
Survey Results and Actions
29. In Summary: Taking Insights into Action
Insights From:
Market Research
Various VOC
NPS Data
Performance Metrics
Business Process Improvements
Corporate Priorities
= Overall Improved
Customer Experience
Drives
Evidenced in 2012 by a 68% increase in TNPS score over ‘11
30. Thank you for having me!
Roberta O’Keith, MBA, CPC, ELI-MP
913-221-5214
rokeith70@yahoo.com
http://www.linkedin.com/in/rokeith/
Notas del editor
Identify external trends and influencesAnalyze market, competitors, and customersCollect and manage knowledge and dataRecommend strategic directionsDevelop business case, secure sponsorship, and select teamDevelop hypothesis and research planConduct market research and develop solutions and targeting toolsValidate solutions, profile customers and develop customer insightsSelect and prioritize segments and communicate outcomesAlign business model and portfolioInnovate and create solutionsDefine positioning and create/validate value propsImplement and realize value-based pricingOptimize customer experience through aligning organizationDevelop channel and sales strategyLaunch external programs/education and communicationsMeasure and improve performance to drive changeBuild GE brand at critical touch pointsDevelop breakthrough advertising campaigns
Identify external trends and influencesAnalyze market, competitors, and customersCollect and manage knowledge and dataRecommend strategic directionsDevelop business case, secure sponsorship, and select teamDevelop hypothesis and research planConduct market research and develop solutions and targeting toolsValidate solutions, profile customers and develop customer insightsSelect and prioritize segments and communicate outcomesAlign business model and portfolioInnovate and create solutionsDefine positioning and create/validate value propsImplement and realize value-based pricingOptimize customer experience through aligning organizationDevelop channel and sales strategyLaunch external programs/education and communicationsMeasure and improve performance to drive changeBuild GE brand at critical touch pointsDevelop breakthrough advertising campaigns
PriceService & Tech SupportSales Support & RelationshipWarranty/ GuaranteesDeliveryProduct FeaturesProductivity ImprovementBrand re/ Expert Opinion
Segment cheat sheets for sales included description of the segment characteristics, key messaging, potential product solutions they would be interested in.Personas included characteristics of those individuals our sales reps would be talking to at our customers, what their pain points would be, what messaging would resonate with them, how to tailor the conversation around their needs.
Completed late March 2011Survey conducted blind, interview-style352 responses, mostly US and LASOnly 10% of respondents from GE listCross section of customers v.s. potential
Completed late March 2011Survey conducted blind, interview-style352 responses, mostly US and LASOnly 10% of respondents from GE listCross section of customers v.s. potential
Establishing baseline internal business metrics – OTD, Quote, Customer ServiceCost out opportunities through business process improvement projects to improve cycle times and improve price positioningProduct quality and NPI opportunities