10_b2b solution sales

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B2B Solution Sales


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From Products to Solutions

Many companies, especially smaller ones, start bydeveloping a product to replace an existing product.This is the building-a-better-mousetrap mentality.

Many companies also think that the best way to wincustomers is to develop a superior product andcontinually work to make it better.

In other words, they start with the product & servicesfirst and consider customer relations as anafterthought.

This is an error in thinking! A better approach is to understand the customer by

mapping out experiences.


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Customer Experience Approach

Recent research discovered that only 8% of customersthink that their experience with their vendors weresuperior, whereas 80% of vendors think that theydelivered a superior one.

This research points out an obvious disconnect.

By focusing on core products instead of understandingthe customers experience, many companies lose theircustomer and never know why.

Also, by not understanding the customer, companies losean opportunity to create value and cement relationships.


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Customer Experience Maps

One way to understand the customer better is toMap out experiences at various touchpoints.

Touchpoints are spots where a seller has direct or

indirect contact with the customer about the productor service over time.

The map points out what is most important in the

seller/customers experience.


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Ultimate Goal of Experience Map

The ultimate goal of an Experience Map is to identify:

1. The value that customers place on different levels ofperformance for each element of the experience.

2. The customers minimal expectations for each

element.

3. The customers perception of the firms performanceversus that of key competitors.

Once the map is developed, the next step is to meetwith the customer and pare down the list to the mostcritical issues.


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Customer Experience Life Cycle MapThe First Step in Understanding a Customers Experience is to Develop a Life Cycle Map

A representative set of customer-company interactions

Relationship

initiation

The company

exposes the

customer to its

marketingmessage

The customer

seeks relevant

information

Provider

evaluation

The customer

gets initial

price and lead-

time quotes

The customer

puts out an

RFP

The customer

evaluates

providers and

negotiates

terms and

pricing

The customer

selects the

provider

Account

setup

The customer

obtains

materials for

account setup

The customer

provides

account profile

information

The company

confirms setup

and activation

The company

performs

courtesy

follow-up

The customer

requests

product

information

Account

maintenance

The customer

maintains

profile

information

The customer

maintains

supplies

The company

provides

general

support (not

related to

problems)

The customer

obtains

ongoing price

quotes

Payment

The

customer

receives and

validates theinvoice

The

customer

makes the

payment

Problem

resolution

The

customer

files a claim

and obtainsresolution

The

customer

notifies the

company of a

problem and

obtains

resolution

The

customer

seeks an

invoice

adjustment

and obtains

resolution

Product

reception

and use

The

customer

tracks order

status

The company

and the

customer

arrange the

final delivery

terms

The

customer

receives and

inspects the

product

The

customer

refuses or

accepts the

product

Order

placement

The customer

selects the

product

The customer

places the

order (fills out

the order form

The customer

prepares

specialty

documents

when required

(for example,

for rush

delivery)

The company

and the

customer

arrange initial

delivery terms


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Product- to a Solution-Centered Approach

Dont start with product first. Instead, start withunderstanding the customers problem and end withproducts and services that solve that problem.

The exchange should not be transaction-based butrather be an interactive exchange with the objective

of developing a relationship around co-creatingvalue with the customer.


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From a Product to a Solutions Perspective

Product Perspective Solutions Perspective

ValueProposition

Win by creating innovativeproducts and enrichingfeatures of existing products

Win by creating and deliveringsuperior customer solutions

ValueCreation Value is created by the firm Value is co-created by the customerand the firm

DesigningOfferings

Start with the product orservice, and then targetcustomer segments

Start with the customer problem,and then assemble requiredproducts and services to solve theproblem

Company-CustomerRelationship

Transaction-based Interaction-based and centered onthe co-creation of solutions

Focus onQuality

Quality of internal processesand company offerings

Quality of customer-firminteractions


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Determine Unique Capabilities

Before developing solutions, B2B firms must:1. Define their own capabilities

2. Figure out how to use them to help customers to:

a. Reduce costs, Value Engineering

b. Increase responsiveness

c. Improve quality

d. Maybe even contract to do some of the work

Products provide the platform for the deliveryof services.


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Do Service Transition Strategies Pay Off?

To improve competitiveness many firms add services totheir existing product offerings to make1. The firms value offering more unique2. Duplication difficult for rivals3.

Products more valuable to customers thereby enhancing profitability and firm value.

Does it pay off?1. Confirmation comes when firms that add services see

an increase in sales from 20 30%.

2.Adding services is more effective for firms that relatethe service to their core products.

3.Adding services is effective in turbulent or slowgrowth industries, but counterproductive in stable or

high growth industries.


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Benefits of Solution Marketing

It offers:

1. New avenues of growth

2. New ways to differentiate


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Growth Opportunities (continued)

Lets assume we have a great product that does the job.What else can we do to gain more share- of-wallet?

Solutions marketing forces us to ask the question,What other services can we provide to our customers

that could solve related problems?

Example: Deere & Co. provides health insurance andbanking in addition to farm equipment.

What if Deere & Co. provided GPS to automaticallysteer their new combine or added biosensors to test theearths mineral content?


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Service Solutions FacilitatesDifferentiation

Business marketers who emphasize solutionssustain differentiation because solutions offer a

wider variety of services that can be customized tomeet customers unique needs.

By co-creating solutions, business marketersenhance loyalty resulting in the customer creating

barriers for competition.

10_b2b solution sales

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