Selecting target segments often involves trade-offs among market size, profitability, market competitiveness and ability to serve. With a clear segmentation in hand and a view of what each segment needs, companies can prioritize the elements of their value proposition that are critical to winning.
Adjacency growth can be challenging because companies need to not only assess if a new product or service will be synergistic, but if the core of their value proposition can resonate with a new set of customers, or the same customers buying something new with different criteria.
Companies need an objective perspective to determine if their customer base is really satisfied and which factors drive that satisfaction. In an acquisition scenario, companies need to quickly assess a target’s viability based on its competitive position and the strength of its customer base.
What we do
- We use transactional data, desktop research and customer interviews to develop an initial view of segments and then develop customized quantitative market research to create deeper profiles
- We often use focus groups to validate our findings and bring segments to life
- We use survey results and facilitated discussion to help our clients focus in on the elements of the value proposition that really matter:
- What is the winning formula that will capture share with the target?
- Which elements are interesting features that can win the day with select groups on specific occasions?
- What is the price of entry in the market?
- We use customer satisfaction results to define and prioritize value proposition gaps
- We leave our clients with an agreed upon set of actions to attract and retain the target with the winning proposition
- We recommend metrics to measure success and help clients institute a system to capture longitudinal data
Contact us to get started.