so, who’s the customer? - manufacturers alliance for ... · equipment. a case in point . . ....
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SO, WHO’S THE CUSTOMER?DEALING WITH COMPLEX VALUE CHAINS
Gerry KatzMAPI WebinarsMay 11, 2017
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A LITTLE STORY . . .
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A CASE IN POINT . . .
Run-Flat Tire
A major innovation . . .
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When depressurization occurs,
Plusses:
No blowout – vehicle stability is maintained Can continue to drive for about 50 miles at
speeds not to exceed 50 mph Lower vehicle weight (no spare, no tools) Great for mission critical applications (e.g.
military, presidential limos, etc.)
A CASE IN POINT: RUN-FLAT TIRES
The product failed!
Minuses:
Blowouts are still possible Harder to measure and
maintain tire pressure Harsher ride Faster tread wear Higher tire weight High replacement cost
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The end user isn’t the only stakeholder in the value chain . . .
Problems for the tire dealer:
Must maintain costly new inventory
Low expected volume
Must re-train staff
Must invest in expensive new equipment
A CASE IN POINT . . .
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SO, WHAT’S THE LESSON?
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The Classic Mistake:
Defining the “customer” too narrowly !!
If you are in a function in which you have a need to interact with customers on a regular basis . . .
Sales
Marketing
New Product Development
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It Depends . . .
Sales:
– Key decision-makers
– Key influencers
– Procurement
WHO SHOULD WE TALK TO?
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It Depends . . .
Marketing:
– All of the above, plus …
– End users
WHO SHOULD WE TALK TO?
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It Depends . . .
New Product Development:
– Look at the entire Value Chain
– Start with the “End User” and work your way back
WHO SHOULD WE TALK TO?
Whose opinions matter? Where is the information?
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VOICE OF THE CUSTOMER IS THE STUDY OF CUSTOMER NEEDS
“A description, in the customers’ own words, of the benefit to be fulfilled by the product or service”*
* Source: Griffin, Abbie and John Hauser, “The Voice of the Customer,” Marketing Science, Winter 1993, 12:1, pp. 1-27.
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LET’S GO TALK TO SOME OF OUR CUSTOMERS, AND ASK THEM WHAT THEY WANT!
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Defining Terms
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Raw Material Suppliers
Parts Suppliers
Manufacturer
Distributors
Retailers
Purchaser
End User
DEFINING TERMS
Linear
Supply Chain:
– How the physical product moves from origin to end user
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DEFINING TERMS
Networked
Procurement
Technical Specifier
Quality & Regulatory
Economic BuyerReceiving
Inventory Management
End User
Value Chain:
– Who “touches” this product or service? Who are the “stakeholders”?
– Who might have information that could help us build a better next generation product?
– Where might there be opportunities to “add value”?
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THINKING MORE BROADLY . . .
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The benefits of a sampling plan:
– Ensures that you get a broad cross-section of customers
– Gets you to focus on customer “types,” not names
– Helps to organize your time and effort
PUT TOGETHER A FORMAL SAMPLING PLAN
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START BY SEGMENTING THE MARKET
Definition of a Segment
– “A large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitudes, or buying habits”*
…or
– Dividing the market into distinct groups of buyers who may require separate products / services / marketing mixes
*Source: Philip Kotler, Marketing Management, Prentice Hall, 2000.
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Where’s the information?
– Roles Within a Customer Company: procurement, technical specifiers, decision makers, influencers, quality, regulatory, manufacturing, end users, …
– Vertical Industries Served: energy, aerospace, military, municipal governments, chemicals and coatings, agriculture, medical technology, healthcare, commercial, …
– Geographic Areas: the Americas, Europe, Asia Pacific, … or northeast, southeast, midwest, southwest, west, …
– Specific Technologies Used: reciprocal pumps vs. peristaltic pumps, phaco vs. laser cataract surgery, …
– Supply Chain Participants: manufacturers, OEMs, distributors, system integrators, retailers, …
– Customer Size: small, medium, large, based on total volume vs. our volume, …
THERE ARE MANY WAYS TO SEGMENT A MARKET
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Breakfast Cereal
SOME EXAMPLES:
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Segmentation Dimensions:
– Consumers
– Customers
BREAKFAST CEREAL
Consumers TOTAL
Purchasers (50%) 15
Consumers (50%) 15
TOTAL 30
Customers TOTAL
Buyers (67%) 20
Shelf Stockers (33%) 10
TOTAL 30
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Breakfast Cereal
Auto Paint for Collision Shops
SOME EXAMPLES:
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Segmentation Dimensions:
– Role within the Customer Company
– Size and Ownership Status
AUTO PAINT FOR COLLISION SHOPS
LargeIndependent
(20%)
Small Independent
(30%)
LargeDealer Captive
(30%)
SmallDealer Captive
(20%)TOTAL
Managers (30%) 2 3 4 3 12
Estimators (30%) 3 4 3 2 12
Painters (40%) 3 5 5 3 16
TOTAL 8 12 12 8 40
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Breakfast Cereal
Auto Paint for Collision Shops
Residential HVAC Equipment
SOME EXAMPLES:
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Segmentation Dimensions:
– Role within the HVAC Contractor
– Geographic Region
RESIDENTIAL HVAC EQUIPMENT
Northeast(30%)
Southeast(50%)
Southwest(20%) TOTAL
Installers (40%) 4 6 2 12
Sales Reps (40%) 4 6 2 12
Owners (20%) 2 3 1 6
TOTAL 10 15 5 30
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Breakfast Cereal
Auto Paint for Collision Shops
Residential HVAC Equipment
Manufactured Parts and Assemblies (for OEM’s)
SOME EXAMPLES:
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Segmentation Dimensions:
– Role within the customer company
– Vertical Industry served
MANUFACTURED PARTS AND ASSEMBLIES (SOLD TO OEM’S)
Aviation & Aerospace
(30%)
Energy Oil & Gas(25%)
Water / Waste Treatment
(25%)
Medical Devices (20%)
TOTAL
Specifiers (25%) 3 2 3 2 10
Procurement (30%) 4 3 3 2 12
Inventory Management (20%) 2 2 2 2 8
Manufacturing (25%) 3 3 2 2 10
TOTAL 12 10 10 8 40
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THE HEALTH INSURANCE VALUE CHAIN
Employees /Members
Agents,Brokers,
Consultants
CorporateBenefits
Managers
HealthInsurer
InsuranceCompany
Employees
Physicians /Office
Managers
Hospitals
Diagnostic Labs
DeviceManufactures
DisposablesSuppliers
CorporateExecutives
Group Decision Makers
End Users Distributors
Group Administrators
Employees
Hospitals
Physicians /Office Managers
AncillarySuppliers
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Remember the story of the Run-Flat Tire !!– Don’t define the “customer” too narrowly
Segment the market and build a formal sampling plan– Where’s the information?
Summary
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Q & A
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FOR QUESTIONS YOU FORGOT TO ASK…
Feel free to contact me:
Gerry Katz(781) 250-6303
Our Next Open to the PublicVoice of the Customer
Training Course:October 11-12 in Chicago
Visit www.ams-insights.com for more information