BRAND MANAGEMENT

Session 5 & 6 Branding Business-to-Business & Professional Services

3 3

Question 1 Evaluate the management of the Vegemite brand between 2007 & 2009 Question 2 Advise Talbot on a strategy to grow the brand over the next two years (2010 -2011)

4 4

Branding

Contrasting approaches to “go to market”

Push Pull

Dir

ect

In

dir

ect

Value Added Reseller Incentivisation and Enablement

Order Taking Minimal integration

Call Centre

Box Shifters Trade Promotion Limited Impact

Demand

Lead

Ge

nre

ation

5 5

Four elements of brand management

Brand Promise

Visibility

Promise Delivery

Leverage

6 6

Value Risk / Trust

Rebalancing Economy

Supplies material & capital

Equipment

Outsourcing

Supply chain

Professional Services

Intelligence

Complexity

7 7

For sellers its all about competing on service and experience

Brand Promise

Visibility

Promise Delivery

Leverage

10 10

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

Promise Delivery

Leverage

11 11

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 Denton Co-founder of Denton, Corker, Marshall

14 14

Client Equity (Trust)

Brand Equity (Reputation)

New Business Thought leadership / demand generation initiatives

Broadening addressable market

Leveraging brand equity

From activity to client equity Promises 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

Promise Delivery

Leverage

15 15

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

Promise Delivery

Leverage

16 16

18 18

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

19 19

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

20 20

The economic Impact of low / high Trust in Australia in 2015

20

22 22

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

Promise Delivery

Leverage

23 23

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

24 24

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

25 25

Clients

Understanding

of

own needs

Understanding of available capabilities

Low

High

High Low

LISTEN Need state Knowledge level Consideration set Value drivers CHOICES

Justify the ‘why pick me’ Inform re additional features & benefits

SELL Features and benefits relative to needs

26 26

Clients

Understanding

of

own needs

Understanding

of available capabilities

Low

High

High Low

LISTEN Need state Knowledge level Consideration set Value drivers

N E E D S

Extend the ‘why do any thing’ The benefits of action The costs of inaction

CHOICES

Justify the ‘why pick me’ Inform re additional features & benefits

SELL Features and benefits relative to needs

27 27

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 Diligence Researching solutions Ranking options Benchmarking 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

28 28

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

29 29

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%

30 30

C-level perceptions of sales contracts & value derived from meetings

Sources: Serius Decisions Research 2014. Forrester Research 2014

25% Proficient

Business Knowledge

88% Proficient

Product Knowledge

4x

1x

Value from meetings

4x less likely to get what they value 4x more

31 31

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

32 32

Satisfaction v experience drivers

Hygiene Factors (Satisfaction Drivers)

Return – Return on invoiced services

Reliability – Strong reputation/brand – Performs the promised service dependably

and accurately Responsiveness

– Available and reacts to requests Tangibles

– 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

33 33

Engagement: From Contact to Contract

34 34

36 36 36

37 37

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

38 38

39 39

Ginni Rometty

45 45

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

48 48 Source: 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

49 49

Three Types of Value Proposition

Adapted from Customer Value Propositions in Business Markets, Harvard Business Review

Value Proposition:

All Benefits Favourable Points of Difference

Resonating Focus

Consists of: All benefits clients could receive from our services

All favourable points of difference 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 customer question:

“Why should we engage your services?”

“Why should we your services instead of your competitor’s?”

“What is most worthwhile for our firm to keep in mind about your services?”

Requires: Knowledge of own breath of services and their related benefits

Knowledge of own service differentiators and next best alternative

Knowledge of how own Services offer superior 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

50 50

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

51 51

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).

Define your value proposition

53 53

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

54 54

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

55 55

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

56 56

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

57 57

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

59 59

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