BRAND MANAGEMENT · Source: CSO Insights Sales Performance Optimization survey 2008 2012 2013 Wins...
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BRAND MANAGEMENT Session 12 & 13 Branding Business-to-Business & Professional Services
Transcript of BRAND MANAGEMENT · Source: CSO Insights Sales Performance Optimization survey 2008 2012 2013 Wins...
BRAND MANAGEMENT
Session 12 & 13 Branding Business-to-Business & Professional Services
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B2C V B2B Brand Management
V
33
Branding
Contrasting approaches to “go to market”
Push Pull
Dir
ect
In
dir
ect
Value Added ResellerIncentivisation
and Enablement
Order Taking Minimal integration
Call Centre
Box ShiftersTrade PromotionLimited Impact
Demand
Lead
Ge
nre
ation
44
Four elements of brand management
Brand Promise
Visibility
PromiseDelivery
Leverage
55
ValueRisk / Trust
Rebalancing Economy
Suppliesmaterial & capital
EquipmentOutsourcing
Supply chain
Professional Services
Intelligence
Complexity
66
For sellers its all about competing on service and experience
Brand Promise
Visibility
PromiseDelivery
Leverage
77
Brand Promise
Visibility
PromiseDelivery
Leverage
1. Our clients trust us with their most important transactions, ….
2. we can deliver whatever expertise you need, wherever you need it. ……
3. we are able to develop a deeper understanding of our clients’ businesses,
4. provide commercially astute, innovative advice
5. …commercially astute
6. create better business outcomes for our clients.
1. trust us. ….involved in some of the most important transactions ……
2. ….tailored to meet client needs…
3. …We take time to learn our clients’ businesses
4. do not just negotiate, litigate or mediate: weinnovate…
5. …Commercial and goal drive
6. for achieving exceptional outcomes
For sellers its all about competing on service and experience
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…… and values
ANZ Combank NAB Westpac
Integrity Integrity Do the right thing Integrity
Collaboration Collaboration Work together One team
Accountability Accountability Realize potential Courage
Excellence Excellence Respectful/ Authentic Achievement
Respect Service Help customers Delight customers
Brand Promise
Visibility
PromiseDelivery
Leverage
99
If culture is the internal value and belief system that guides and animates an organisation’s people, then brand is the external manifestation of this system. In other words, culture is the organisation’s promise to stakeholders – and brand is that same promise delivered.
Bob Moritz, Chairman and Senior Partner, pwc (US)
pwc Global Annual Review 2010
Brand Promise
Visibility
PromiseDelivery
Leverage
1010
How clients buy
Top 5 methods buyers are “very / somewhat likely” to use to initially identify and learn more about professional service providers
Referrals from colleagues
Referrals from other services providers
Personal recognition or awareness
In-person seminar
Presentation at a conference or event
0% 20% 40% 60% 80%
79%
75%
73%
66%
62%
Source: How Clients Buy, 2009 Benchmark Rain Today
John DentonCo-founder of Denton, Corker, Marshall
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Client Equity(Trust)
Brand Equity(Reputation)
New Business Thought leadership / demand generation initiatives
Broadening addressable market
Leveraging brand equity
From activity to client equityPromises kept
and promoted to client
Imp
lem
en
tati
on
Execution against client expectations & value proposition
Work Done
Co-opted marketers& lead generators
Ad
vo
ca
cy
Business to Business Brand Development
Brand Promise
Visibility
PromiseDelivery
Leverage
1414
100%
80%
60%
40%
20%
0%
80%
Firms who believe they provide a superior service
Source: Bain customer led diagnostic questionnaire & Satmetrix Net Promoter Database
8%Firms who’s clients agree
Client lens
89% of companies compete mostly on the basis of customer experience, versus 36% four years ago :Gartner 2016
Service – apparently ubiquitous source of competitive advantage
Brand Promise
Visibility
PromiseDelivery
Leverage
1515
1616
What drives trust?
0 10 20 30 40 50 60
Proactively address a crisis
Listen to customer needs
Have transparent business practices
Treat employees well
Have ethical business practices
Put customers before profits
Are highly regarded (TMT)
Are innovators in services and ideas
Provide high quality services
Capability
Character
Ease of doing business
Adapted from Edelman 2015 Australian Trust Barometer
How important are each of the following for building trust: 9-point scale. Top wo box extremely / very important
1717
How Australian businesses perform on drivers of trust?
Capability
Character
Ease of doing business
Adapted from Edelman 2015 Australian Trust Barometer
How important are each of the following for building trust: 9-point scale. Top wo box extremely / very important
0 10 20 30 40 50 60
Proactively address a crisis
Listen to customer needs
Have transparent business practices
Treat employees well
Have ethical business practices
Put customers before profits
Are highly regarded (TMT)
Are innovators in services and ideas
We provide high quality servicesImportance
Performance
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57% Australian CEOs concerned about the lack of trust in Australian Business
Up from 40% two years ago
Source: PWC 19th Global Survey of CEOs
1919
The economic Impact of low / high Trust in Australia in 2015
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Talking brochure
Features & benefits
When customer
assesses options
Experience
Listener
When customer
understands need
Product Solution Capability
Buyer Selects on
Go-to-Market
Point of Engagement
Trust
Challenger
When customer is
learning
Engagement
Brand Promise
Visibility
PromiseDelivery
Leverage
2222
Most likely outcome when you are selling capability to the risk averse: NO OUTCOME
Source: CSO Insights Sales Performance Optimization survey
2008 2012 2013
Wins 40% 45% 39% - 20%
Competitive losses 30% 28% 31% - 3%
No decision 21% 26% 31% + 48%
Leading reasons for not attaining quota 2015
Source: 2015 State of Sales Execution - Qvidian
2323
Frequency of high performance by approach:
11 4
18
7
26
10
25
20
54
0%
20%
40%
60%
80%
100%
Low complexity High complexity
25
Challenger
Lone wolf
Hard worker
Problem solver
Relationship builder
Source: CBE Sales Leadership Council 2011
Frequency of high performance by type
Low & high complexity environments
2424
Clients
Understanding
of
own needs
Understanding of available capabilities
Low
High
HighLow
LISTENNeed stateKnowledge levelConsideration setValue drivers CHOICES
Justify the ‘why pick me’Inform re additional features & benefits
SELLFeatures and benefits relative to needs
2525
Clients
Understanding
of
own needs
Understanding
of available capabilities
Low
High
HighLow
LISTENNeed stateKnowledge levelConsideration setValue drivers
NEEDS
Extend the ‘why do any thing’The benefits of actionThe costs of inaction
CHOICES
Justify the ‘why pick me’Inform re additional features & benefits
SELLFeatures and benefits relative to needs
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Its too late – client has specified needs
Sources: The End of Solutions Sales, HBR & Forrester Research
Buyers engage much later
60% - 90% COMPLETE
Research & Due DiligenceResearching solutionsRanking optionsBenchmarking price
First Contact Decision
…… and selected provider
Source: Forrester Global Executive Buyer insight: 2012 Base: 418 executive level buyers at global companies of 100 or more employees
How often do you choose a vendor who has worked with you to turn a vision into a clear path to value?
Create and deliver on a vision
Respond to request
74% 26%Why and how to change Why pick me
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Qualification process is counter-productive
80%believe that sellers primarily have their own interests at heart
64%of senior executives believe that the salesperson doesn’t know enough about their buyer’s business to bring any value to a meeting...
10% will take a second meeting
Sources: Forrester ”What Do Executive Buyers Find Valuable? & “Drive Growth With a 21st Century Selling System” 2014
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Qualification process is counter-productive
Thinking of a typical meeting with a vendor sales team (or person)how would you characterize their agenda in your interactions?
18%
They only want to tell me about their
products and services
31%
They listen for a key word or two so they
can launch into a prepared pitch
31%
They are legitimately interested in trying
to help us understand how their products or
services would work in our situation
13%
They try to understand our
challenges and offer suggestions (even if they don’t sell those
products and services)
7%
They are genuinely interested in
partnering with us to make sure our
initiative is successful
Forrester: 418 executive-level buyers at global companies with 100 or more employees
Sales perspective Executive perspective
80% 20%
2929
C-level perceptions of sales contracts & value derived from meetings
Sources: Serius Decisions Research 2014. Forrester Research 2014
25%Proficient
BusinessKnowledge
88%Proficient
Product Knowledge
4x
1x
Value frommeetings
4x less likelyto get what theyvalue 4x more
3030
Experience drives loyalty and referral
19%
9%
9%
53%
Loya
lty
and
Ref
erra
l
Company Project delivery Value-to-price Experience& Brand Impact Ratio
3131
Satisfaction v experience drivers
Hygiene Factors(Satisfaction Drivers)
Return– Return on invoiced services
Reliability– Strong reputation/brand– Performs the promised service dependably
and accuratelyResponsiveness
– Available and reacts to requestsTangibles
– Looks ‘right’ – from people through to documentation
Motivators
(Experience Drivers)Insight
– Offers a unique perspective on market developments• Unrealised problems• Unexpected solutions• Unseen opportunities
Advice– Assists in evaluating alternatives– Continuing availability
Assurance– Inspires trust and confidence– Mitigates personal risks and costs– Acts as a broker of capabilities
3232
Engagement: From Contact to Contract
3333
353535
3636
Decision drivers in a complex sell
-0.2
-0.1
0
0.1
0.2
0.3
0.4
0.5
Teaching customerabout their own
business needs andchallenges
Providing thecustomer with
compelling reasonsto take action
Representing asmart / expertperspective
Being easy tounderstand
Containing interstingfacts of anecdotes
Source: CBE 2012 B2B Customer Survey
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Ginni Rometty
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The Role of a Point of View
Existing clients
– Differentiate by enhancing existing client experience with thought
leadership
– Extend share of client by making clients aware of additional perspectives,
approaches
– Leverage client networks
– Add value by enabling clients to learn and teach others
Prospects
– Disrupt existing relationships with cut through points of view
– Reduce uncertainty and perceived risk of initial engagement
– Provide a basis for building trust and disclosure
– Motivate prospects to act
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Features of an Effective Point of View
Relevant to an to C-suite• Focuses on business issues• Generates attention and provides a basis for engagement• Relevant to today’s challenges
Is inclusive not exclusive • Should not deter firms from engaging with us• This is not our final differentiator• Should be adaptable across client circumstances and across sectors
Distinct from the market noise – white papers / thought pieces etc.• Should offer a unique perspective• Illustrates our unique view of the challenges• Illustrates our unique approach to addressing these challenges
Can be validated / proves our claims• Case examples of challenges clients face• Demonstration of client engagement and success
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30%
31%
32%
38%
40%
41%
Talked too much
Did not craft a compelling solution to my needs
Did not convince me of the value I would receive
Did not respond to my requests in a timely manner
Did not understand my needs
Did not listen to me
0% 50%
Reasons firms do not win new business
4747Source: Adapted from ‘How Clients Buy: The Benchmark Report on Marketing and Selling Professional Services’
0% 50%
Talked too much
Did not understand my needs
Did not listen to me
30%
40%
41%
# 1 Disclosure
Did not craft a compelling solution to my needs
Did not respond to my requests in a timely manner
31%
38%
# 2 Solution
Did not convince me of the value I would receive 32% # 1 Value
Reasons firms do not win new business
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Three Types of Value Proposition
Adapted from Customer Value Propositions in Business Markets, Harvard Business Review
ValueProposition:
All Benefits Favourable Points of Difference
Resonating Focus
Consists of: All benefits clients couldreceive from our services
All favourable points ofdifference our services have relative to the next best alternative
The one or two points of difference (and, perhaps, a point of parity) whose improvement will deliver the greatest value to the client for the foreseeable future
Answers the customerquestion:
“Why should we engage your services?”
“Why should we your services instead of your competitor’s?”
“What is most worthwhilefor our firm to keep in mindabout your services?”
Requires: Knowledge of own breath of services and their related benefits
Knowledge of own service differentiators and nextbest alternative
Knowledge of how ownServices offersuperior value to this client,compared with next best alternative
Has the potential pitfall: Benefit assertion – that benefits will accrue
Value presumption – that benefits will be valued
Requires deep client understanding –client value and consideration set
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Developing & communicating the value proposition
Key Value Proposition(Resonating Focus)
Needs Assessment for each target (Weightings
attributed to benefits)
Identify Target Audiences
Possible Messages (All benefits)
Assess competing Offers
Favourable points of difference
5050
Value Proposition – A Framework
For ________________(target client/segment)…
…that need ____________(the problem we solve),…
…we offer ________(the solution, product / service)…
…unlike _____________(the next best alternative)
…provides ________________(quantified benefit)…
we do this by ______________(how do we do it)…
…as demonstrated by ___________(proof points).
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Value proposition: What prospects say when…
For ________________(target client/segment)…
…that need ____________(the problem we solve),…
This is a real problem that I need to solve
1. The problem resonates
…we offer ________(the solution, product / service)…
…unlike _____________(the next best alternative)
…provides ________________(quantified benefit)…
The proposed solution can uniquely solve this problem
2. The solution is differentiated
we do this by ______________(how do we do it)…
…as demonstrated by ___________(proof points).
I am confident provide will to deliver on this as promised
3. The solution is substantiated
5252
What prospects say when 1,2 or 3 is weak or missing…
For ________________(target client/segment)…
…that need ____________(the problem we solve),…
We do not have this problem. This is not important for us.
…we offer ________(the solution, product / service)…
…unlike _____________(the next best alternative)
…provides ________________(quantified benefit)…
This is too expensive. We can get it done elsewhere. We can do this ourselves.
1. The problem does not resonate
2. The solution is not differentiated
we do this by ______________(how do we do it)…
…as demonstrated by ___________(proof points).
We do not believe that you can deliver the unique value that you claim – on time and in full. There is too much risk in this
3. The solution is not substantiated
Define your value proposition
5454
Only 14% of B2B service customers willing to pay more
Source: CEB/Motista/Google B2B Branding Survey; n=3,000 B2B buyers
Few buyers trust enough to pay more
5555
15%10%5%0%
Understanding of specific needs
Depth of functional expertise
Depth of industry expertise
Prior performance
Reputation within the industry
Strategic thinking
Speed of work
Price
Criteria used by clients to select providers
Source: Adapted from ‘Consulting Client Satisfaction: Leading Firms’ Performance, Reputation and Brand Awareness’ Kennedy Research Group
5656
Criteria used by clients to select providers
20%15%10%5%0%
Understanding of specific needs
Depth of functional expertise
Depth of industry expertise
# 1 Value
Prior performance
Reputation within the industry
Strategic thinking
# 3 Risk
Speed of work # 4 Time
Price # 2 Cost
Is this the best investment I can make
The best investment you can make
Margin – drivers of the pricing opportunity
5858
Decision drivers across the engagement process
Needs
Cost
Solution
Risk
Risk
Cost
Solution
Needs
BRAND MANAGEMENT
Session 12 & 13 Branding Business-to-Business & Professional Services
