OK, time for a quick test. If you were looking at this menu board, what would you expect to pay for a bottle of Piper Heidsick champagne? This is a real picture of the menu board that my wife and I were faced with on a recent Friday evening (I have doctored it only to… Continue reading Taking the Customer’s Perspective?
One of the first things we have our clients do in our Grassroots Strategy workshops is define the market or “opportunity” from their customer’s perspective. The primary question we ask is “what is the problem you solve for the customer?” Seems simple, right? Not always. Answering that question is predicated on understanding who is the… Continue reading Value Chain Economics: The Secret to Market Leadership
When we run strategy workshops with clients, we usually start with a discussion of the momentum of the business. Borrowing from the concept of momentum in physics, this is our attempt to capture the trajectory of the business – where it is likely headed in the absence of any change in strategy? This foundation is… Continue reading Do You Know the Momentum of Your Business?
The last two years have been pretty crazy. Whether your business has been doing well or badly in this environment, much of the last two years have probably felt a lot like crisis management. Starting with the new year in 2022, it’s a good idea to refocus your efforts on achieving your long-term strategic goals… Continue reading Make Sure You Don’t End Up With a “Paper Strategy”
The end of the year is always a time to take stock of where you are and think about how you might adjust your plans for the future. Even if you are normally not one to make new year’s resolutions, this past year certainly must have caused you to stop and reflect. Many pundits have… Continue reading What Lessons Can We Take From This Turbulent Year?￼
Not long ago, we had a client that sold hospital equipment. A recent acquisition had broadened their product line and they asked us for some help with the strategy for the new portfolio. We started with an overview of our process, and when we got to the concept of value proposition, they stopped us. “Oh,… Continue reading A Winning Value Proposition Has to Be More Than Just a Slogan
Grassroots Strategy is a powerful conceptual framework, it changes how many of our clients think and leads to exciting new ways for them to conceptualize their businesses. After having worked with our client teams to crack the code in applying key concepts like differentiation, customer value and market segmentation, it often strikes us that the module on Voice of the Customer (VOC) taught towards the end of the workshop could seem a bit mundane.
In truth, the name VOC is a bit of a misnomer. In the past, we have attempted to change the name of this module to “Voice of the Market” or “Market Insight” but for whatever reason “Voice of The Customer”always seems to come back, despite the fact that we are describing something far larger and more important than an annual survey of existing customers that is sometimes also labelled “VOC.”
One of the benefits of having coached project teams through our needs-based segmentation process hundreds of times across dozens of industries is that we can spot patterns that are difficult to identify for even the seasoned industry practitioner who has typically developed a limited number of segmentation schemes, probably in just one or two industries. One pattern that we often see is a natural clustering of customers based on size and complexity – with large customers demanding a high degree of customization for their unique requirements and small customers buying just one or two standard products serving their far simpler needs (or if they do have greater needs, we cannot afford to serve them because of their purchase volume).
While this type of segmentation works in addressing those two extremes, the problem is ‘the middle’ – the medium-size, medium complexity customers. Leaving them all in one segment is often not a good option, as they can comprise 60 – 70 percent of your revenue.
In a probably slightly twisted sort of way I often think of the Rolling Stones song “You Can’t Always Get What You Want” when I think about Voice of the Customer or VOC. It is almost a universal truth that if you ask customers what they want, they will respond with some form of “a better version of what we are buying from you (or your competitor) today at a lower price.” If you just ask directly, this is almost certainly what customers will say they want, and many probably believe it. But the goal of good VOC is to get beyond this superficial response.
We often talk with companies who are waiting to work on their strategy because they are reworking their mission and vision statements. There are key differences between mission, vision and strategy and it is essential they all fit together to drive impact. Successful companies connect these three pieces together to ensure their business focus is clear, communicated and market driven. But strategy is too important to be put on hold while you search for the perfect mission and vision.
Our advice: Make sure you don’t put your strategy on hold while updating your vision and mission statements.
Read the full blog for insights on the core components of your strategy that drive results to set you and your company up for success.
When we were kids (yes, we had cars and televisions back then), there was no doubt that the DC universe of superheroes was cooler than the Marvel Universe. DC had Batman and Superman, the two coolest crimefighters, plus we had the Justice League cartoons on Saturday mornings and Lynda Carter’s Wonder Women on TV. DC… Continue reading Do you Prefer Superhero Strategy Lessons from DC Comics or Marvel?
The Pygmalion Trap The Greek myth of Pygmalion, the sculptor who falls in love with the statue he creates, is one of the most enduring stories of all time. The tale shows up in the works of Ovid, the Roman poet who lived in the time of Caesar Augustus. In the 18th and 19th century,… Continue reading Don’t Fall in Love With Last Decade’s Business Model
A man in a well-tailored suit will always shine brighter than a guy in an off-the-rack suit.
– Michael Kors
Mr. Kors may be right, there is nothing quite like a real custom-tailored suit. But it has also been one of life’s luxuries reserved for the fortunate few – a bespoke suit from one of London’s Saville Row tailors will set the owner back at least $2,000 and it could be several times that amount. So, most of us usually settled for an off-the-rack suit, it didn’t fit perfectly, but it was a fraction of the cost.
The list of books and blogs focused on corporate culture is expansive and it is a topic that has been discussed for decades. Why then is culture still one of the top issues leaders seek to address in their organizations? What holds organizations back from being able to develop the culture they are looking for?
Is your strategy precise or robust? Precise: “Exactly or sharply defined or stated” (Merriam Webster Dictionary) or “Marked by exactness and accuracy of expression or detail” (Oxford English Dictionary) Robust: “Capable of performing without failure under a wide range of conditions” (Merriam Webster Dictionary) or “Sturdy in Construction” (Oxford English Dictionary) It is with some… Continue reading Strategies to Stand the Test of Time
It’s that time of year again – no, we are not referring to the holiday displays starting to appear in stores which seems to happen earlier each year as the holiday season gets longer. We are referring to the equally long season of budgeting that is ongoing for many of you reading this. CFO Magazine… Continue reading Can you make the headache of budgeting a thing of the past?
We heard a familiar lament just a couple weeks ago from a VP of Engineering at one of our clients: “If the Sales team would just tell us the customer requirements, we could get on with designing the product.” We’ve heard something similar hundreds of times, and it sounds innocuous at first – what could… Continue reading “You Want Me to Pay for That?” – The Myth of ‘Customer Requirements’
We continue to believe that done well, market segmentation is not just a critical marketing tool, but can be the defining element of your overall strategy. In our previous blog post, we shared of the most common difficulties in getting to a workable needs-based segmentation. So what can you do to avoid those mistakes above and unleash the power of an effective segmentation?
In our Grassroots Strategy workshops with clients, the highlight of the week is often market segmentation. Done well, it is one of the most important changes in the way you think about your business and customers – the customers you choose to serve and how you serve them impacts both the revenue and the expense sides of your income statement. But too often, teams struggle to do it well.