Our client was looking to leverage its core strengths and exploit technology changes in its industry to capture a key position in the $2-$3 billion market segment for data communication/internet technology. Our client faced issues inherent to most new markets, notably that the technology in its industry was developing at an exponential rate and that customers to that point did not understand the potential choices they had amongst competitors (i.e. product and pricing differentiation was difficult due to the vagaries of the product and complexity of the pricing mechanisms).
Our objective was to design a service package that would attract customers, targeting a 30%+ market share when implemented. We also sought to develop a strong service infrastructure that could provide outstanding customer service and keep costs down, helping achieve high profitability.
We first conducted extensive primary and secondary research to determine customer attitudes/preferences for this type of service and develop an in-depth understanding of the economic tradeoffs faced by customers. With a more thorough understanding of the customers, we designed a product to best meet their needs.
We priced the product to be attractive to customers and yield an attractive investment return to our client. We emphasized a simpler pricing mechanism that the customer could understand, attempting to differentiate our client’s product.
We then worked to determine our competitors’ approaches through trade show visits, customer interviews, and synthesis of sales force intelligence. Using this data we developed a service provisioning infrastructure and capability that could help improve our clients’ customer service. We identified and prequalified vendor partners to assist in service provisioning and keep costs down.
We delivered a long term strategy for preeminent market share, service, and cost positioning.
We helped our client optimize its offer scope and pricing for each deal, developing an economic model of customer choices. We created compelling product offering materials for customers and client sales force that was used to improve sales and retain customers.
Our work helped establish our client as a major player with growing market share in its industry and we continued to work with the client to ensure that projected revenue gains and cost savings were achieved.