Customer Centred Visioning
GO-TO-MARKET Models is one of our customer-centred visioning products - a value-for-money customer strategy package that delivers a rapid and structured review of a client's strategic options for developing new customer delivery models

Customer Strategy > Customer Centred Visioning > Go-to-Market Models

New Customer Delivery Models
Traditional customer delivery models have been developed around the premise that products need to distributed widely and sold face to face. Companies have built dealer/channel partner models which, despite their higher overall cost-to-market, have given them rapid market penetration and wide coverage. For them, the cost of building and managing an indirect channel has been less than the cost of deploying an infrastructure to sell and service direct. However, they are only too well aware of the growth of telephone-based direct Go-to-Market models and, more recently, of very successful Internet-based direct models. Traditional Go-to-Market companies recognise that the cost of maintaining their indirect channel is unsustainable, and have augmented their indirect channel with a new 'quasi-direct' Go-to-Market model (engaging customers directly, but then fulfilling through a channel) or have experimented with an Internet-direct model for certain classes of product or customer type. Unfortunately, the development of any new Go-to-Market model has attendant risks. Existing channel partners are wary of absorbing the cost of selling a product when customers can purchase the product through an alternate direct channel. Also, the cost of establishing a new Go-to-Market model can be very high and, with the returns uncertain, many organisations step back from a wholesale re-engineering of they way that they engage customers. Nonetheless, competitive pressures continue. Leveraging a lower cost-of-sale, Internet sellers are able to invest in sufficient demand generation to drive consumers to their websites which, with their compelling propositions and Calls to Action, are able to convert browsers in buyers. Dell Computer Corporation is an outstanding example of a company that was able to deploy a new Internet- and Contact Center-based Go-to-Market model (at a time when over 95% of all personal computers were purchased through computer dealers), helping Dell to become the worldwide market leader. Their marketing mantra was, "It's better to be Direct." It is too simple to advocate that companies should start again. All but a few green-field start-up companies have the luxury of designing new Go-to-Market channels that are unconstrained by the legacy of existing channels. Companies know that channels - however costly they may be cannot simply be 'turned off' and replaced by something more efficient. The challenge is to conduct a systematic review of an organisation's Go-to-Market strategic options that embraces the benefits, risks and costs and then to identify a go-forward strategy that either exploits market opportunities or can be sustained in the face of fierce competition.

Our Approach
A fundamental premise to our approach is that the most successful Go-to-Market model is centred on the customer, and that customer expectations and demands are being shaped and heightened by the experience they enjoy when purchasing online, or at a Call Centre. At the same time that organisations are discovering that they cannot afford to sell face-to-face, customers are finding more rewarding ways to purchase. Either the face-to-face sale must be re-engineered and improved (e.g. by making the retail experience more compelling), or new Go-to-Market models must be introduced which leave the customer feeling empowered and satisfied. We believe that many organisations need to re-engineer their Go-to-Market models based around changing customer needs. Although we do not underestimate the change impact of any new Go-to-Market model, organisations need to conduct a strategic review of their options. The review must be customer-centred, identifying what the customer would prefer, consider the impact of change, and must include a detailed financial assessment of each of the identified strategic options.

Customer Strategy

This analysis will be fed into a cost/benefit study for each identified Go-to-Market hypothesis. the cost-of-sales and the street rice of products. High-level programme design: we will develop a high-level deployment plan for the recommended option. develop findings and make simple supported recommendations regarding the most appropriate way forward. Our goal throughout the stakeholder engagement is to establish a clear project mandate: whether there any sacred cows. reduced staff morale. such as the cost of new web systems or a new Customer Centre and the benefits will include the impact on revenue. identifying any trends within the relevant industry sector. we would develop a three-year RoI and NPV for each Go-to-Market model. Customer Segmentation: typically. issues and concerns. brand and any reduction in cost-to-serve for all the propositions identified in the new Go-to-Market model. identifying the major change impacts. which will optionally include the development of a detailed Business Case. we will identify and document two or three strategic options and prepare high-level To-Be processes for each Go-to-Market model. and the issues log. Optionally. review any existing initiatives within the organisation. risk and change assessments. and the deployment risks. Normally. together with their respective risks to the identified benefits Report Preparation: we will analyse the financial. This will help us to identify whether any particular Go-to-Market model is preferred by certain customer types for certain product purchases Process assessment: conducting structured interviews with stakeholders and other project contributors to identify high-level (level 1 and 2) customer engagement processes. Change impact assessment: we will conduct a change assessment. We then analyse the processes. with a particular emphasis on developing a clear picture of customer behaviour trends in individual segments. adding any issues to the issues log. During our stakeholder engagement we will review alternate Go-to-Market models. we will conduct a detailed financial cost-to-market assessment. These may include the risk of customer attrition. and a hypothesis index. we will utilise a number of pre-built analytical tools to deploy the Go-to-Market Models project. the dealer margin. and agreed the overall scope of the project with senior stakeholders throughout the organisation. The baseline for the Go-to-market financial assessment will be the existing Go-to-Market model. identifying the cost prices. Costs will include the deployment costs. Risk assessment: we will conduct an assessment of the project risks associated with each Go-to-Market model. which might include: Re-engineering field-based salesforces (direct and channel) into new lower-cost delivery models Building new telephony-based Go-to-Market models for certain product or customer types Building a new direct model based on the Internet and a Contact Centre New distribution-based models Quasi-direct delivery models Re-engineering channel sales models Research: we will conduct a desk-based review of competitor Go-to-Market models. Next Steps . we will conduct primary research with customer focus groups or structured interviews with existing clients or lost clients. We will then develop hypotheses which we will test with the stakeholders Identify the strategic Go-to-Market options: typically.GO-TO-MARKET Models Customer Centred Visioning How we Tackle a Go-to-Market Project The first phase of our work is to identify the strategic Go-to-Market options by following these simple steps: Engage with stakeholders: we trap business imperatives. we will segment by customer and product. to identify target processes for re-engineering to lower-cost delivery channels. or if there any aspects of the customer engagement that cannot be touched.Analyse the Options The next steps of the project are to conduct a through assessment of each Go-to-Market option before developing our findings and making recommendations Financial assessment: for each identified Go-to-Market model. No 1 2 3 4 5 6 7 Tools Financial assessment and financial benchmarking tools Issues and Risk Log Risk and Change impact assessment tools Process Management Tools Proposition Analysis Tools Competitor strategies assessment tools (Optional) Packaged customer focus group tools . Analytical Tools Dependent on the scope and requirements of the assignment. During the stakeholder engagement we will create a log of issues and risks.

a set of recommendations that support the target strategic option together with suggested next steps A high-level programme development and deployment plan (Optional) A primary research report. top-level business requirements.a desk-based review of competitor Go-to-Market models. including customer focus groups and a summary findings report from interviews with existing and past customers 2 3 4 5 6 7 8 CS-1. initiate issues log. project constraints and a set of Customer Management Guiding Principles A list of stakeholder-verified propositions and hypotheses (the Strategic Go-to-Market Options) Stakeholder and other project contributor interview notes. including summary findings. risk and change impact assessments Week 7: Develop findings. analyse processes and develop Go-to-Market hypotheses for testing with stakeholders Weeks 3 and 4: (Optional) conduct primary research with customer focus groups or structured interviews with existing clients or lost clients. set-up project office. agree project mandate with stakeholders. including Project Strategy. business imperatives. risk and change impact assessment A final report that includes a set of findings. project constraints and a set of Customer Management Guiding Principles. Optional elements of the programme include Primary Research with customer focus groups or structured interviews with existing/lost clients: - Typical Outputs The table below provides a high-level view of the typical outputs. these outputs will be available within 9-10 weeks of the commencement date No 1 Outputs Stakeholder-verified Project Strategy. commence research . Engage Scope Analyse Specify Design How our engagement works Week 1: Stakeholder engagement and project kick-off. a high-level financial. adding any issues to the issues log. sample documentation. The framework contains all the procedural documentation. recommendations and suggested next steps Week 9: Present findings and recommendations What is covered? GO-TO-MARKET Models is designed for a single organisation. Please note that our process framework can be demonstrated on request. Week 4: identify two or three Go-to-Market strategic options and ratify with stakeholders Weeks 5 and 6: conduct financial. business imperatives. draft high-level programme development and deployment plan Week 8: Report generation.5 June-05 © Grass Roots . Normally. together with an issues log Competitor Strategies Assessment For each of two or three strategic options. The high-level process for the project is shown below.GO-TO-MARKET Models Customer Centred Visioning Our Process & Method AllCustomer Strategy packaged products are delivered leveraging pre-built processes published to our process framework. tools and templates to ensure a rapid programme start and delivery. checklists. top-level business requirements. high-level review of alternate Go-to-Market options Week 2: Commence segmentation of customers with a particular emphasis on developing a clear picture of customer behaviour trends in individual segments. identifying any trends within the relevant industry sector Weeks 2 and 3: analysis of customer engagement processes and issues log to identify target processes for substituting to lower-cost delivery channels.

Sign up to vote on this title
UsefulNot useful