OFFERING PORTFOLIO MANAGEMENT AND DISCOVERING SOLUTIONS
Discovering competitive advantage from existing Offering Portfolio
Solution development with use cases and customer challenges - Purpose and synergies for deeper customer relationships
Typical reasons for challenges
- Long history, offerings in very different lifecycle positions
- Wide portfolio & Diverse customer types - domain of blind spots
- Dififculties in defining pareto levers - what are the key things to concentrate on
- No view to HALO and Retention impacts in customer life cycle
- History in M&A - offerings that came along in mergers
- Little synergies - cost/value ratio doesn't work optimally
- Employee dissatisfaction, some offerings gain all attention and investments - unclear about own role in the big picture
- Customers and employees have hard time understanding the focus and reasonale for operating in diverse offering areas
How can we help?
Discovering Halo Effects and relationship dynamics
The nature of individual offerings can be quite different. The offerings that represent best known and highest demand offerings often represent offering A type of penetration curve. Most customers represent narrow penetration. Offering B is different, it is an accelerator for offering penetration and ARPA growth (Average Revenue Per Account = Annual billing). In case we can find Offering B type of offerings in your portfolio, those can be game changing discoveries for Customer Lifecycle management, growth velocity and retention. They can be strategic assets for growth and profitability development.
Potential by industry classification
Different business sectors and industries represent very different types of potential and opportunities. In some industries you can serve customers with large variety of services, and in others with just one or two. Defining where the growth is available and accessible is an important fact for wider portfolio analys. This analysis gives you broad view towards a question: "Where's the money?"
Monetary potential is one thing, the next is about timing and changes in the market place. It is important to learn how changes in market place impact buyer activities in different offering ranges. Are your target customers non-compliant, on addressable, obtainable of active markets. Learn more here
Potential by offering
In standard financial reporting you can see what level of sales each offering represent. That is a start. However, it doesn't say anything about offering related prospects. There could be major potential in an offering that currently represent relatively small share of billing.
Offering lifecycle status has an important role to play. Some markets/offering areas are saturated and declining in value, others are growing.
To make this opportunity actionable, we need to understand in which industry classes the potential exists as well as the company sizes that represent most potential (Picture below). Then we can move on to discover synergies with use cases and develop solutions by combining existing offering components to larger solutions and value propositions.
Discover synergies and narrative/competitive advantage
Your current customer relationships are a source on insights and innovation. The usual situation is that, certain offerings dominate in turnover, but when looked in more detail there are actually small number of customers who have stronger offering penetration and use multiple offering areas... and dominate in total revenue (The right side of bottom picture). The improvement in penetration often has non-linear impact on ARPA (1+1>2). With 180 Flip in perspective the billing history start telling a story about strategically important dynamics.
These customers are already there, this insight comes from own data, it is a fact and evidence for growth opportunity. Majority of customers only use 1-3 offerings, but those using 10 or more represent completely different level of annual billing/account. These customers have a reason to do what they do and they get benefit from doing so. With this data you have means to do customer success story from new innovation. There is a story that should be told to the vast majority of customers. This will drive brand positioning and story development, what does it mean for a customer to collaborate with us in deeper collaboration.
Discover use cases and synergies
When companies have grown organically and with M&A they have also developed new offerings and these offerings may have very strong synergies when analyzed carefully.
The idea is to discover Ideal Offering Profile for segments. This allow us to tell a story of for full-service value and benefits. It will also help us set goals for penetration by segments. Success will increase ARPA (Annual Revenue Per Account), drive retention and customer satisfaction. Internally, it will drive collaboration and synergies.
When we are analyzing history with time series analysis and aggregating potential by offering, we are likely to discover offerings that have been in the sidelines of strategy, but hold very tempting prospects. By segmenting customers, we will be able to discover new growth potential and synergies. This is great for strategic story telling, creation of solutions from existing portfolio and recognition of competitive advantages.
Need based segmentation is a tool for discovery for use cases and growth potential. These use cases and strategic segments offer great platform for creation of objectives and defining Key Results to go after. This type of data also gives very clear advice for activity and value proposition development, Customer Journey Design and Customer Lifecycle planning. It builds a shared platform for offering, marketing, customer facing organization and management.
Setting Goals and Monitoring Change
Bottom-up is about understanding where we stand, what are the customer developments that influence Turnover and EBIT, which are outcomes of how we succeed with customers. Our approach is to concentrate on what is happening with customers and markets: Average ARPA (Average Annual Revenue per Account), Business Group/subsidiary penetration (BG), Product Group or -line level penetration (PG2), Monthly Recurring Revenue's share of billing (MRR). This view has to power to unite people, give purpose and empower them. Having a shared narrative and transparency is a must for strategic story telling. With our help, it is easy.
How we can help you succeed?
Fast and low effort
Quick start with data dumps. Low datamaturity requirements. Easy to use for sales and Contact Center
Facts and evidence based approach. Concentrate on what is happening with customers and markets
Capability to analyze markets by industry segments and by offerings. Readiness and Risk tools help you discover drivers of risk and opportunities
Purpose and Unity
Shared and common tools to collaborate and succeed together. This approach brings people together and unite them with shared perspective and objectives
Measure what matters
We all speak one language, money. Everything is analyzed in monetary perspective to steer attention
Direct link between decisions and deployment
Our platform help you define strategy and connect it directly to implementation. Tools for discovery, measurement and customer facing organisation
Book a demo, intro & sparring
Let's have a discussion. We can show you the demo and would love to discuss about your challenges and how we could possibly help you.