Uncovering service advantage

Case organization profile

  • German multinational
  • One of the largest players in the global capital equipment market
  • Product centric organization
  • Direct as well as channel based sales organization

 

Scenario

  • High-priced product line
  • Premium brand perception
  • Global lineage
  • Tough competition from local (domestic) alternatives
  • Local competition focusing on independent services organization
  • Brand extension to expand presence in the middle and lower price-application segments struggling to meet business expectations after an initial promising launch

 

Mandate to Terragni – the outside – in perspective

  • Uncover customers’ perception of the company,  channel and the product
  • Uncover  channels’  perception of the company and the product
  • Uncover points of experiential differentiation from competition
  • Identify newer avenues of revenue  basis customers’ un-tapped & un-stated needs

 

Customer insights – strengths

  • Strong brand
  • Powerful  product lineage & history
  • Assurance of quality
  • Functionally excellent products
  • History of strong “win-win” channel relationships

Above factors provided channels and end-customers a sense of security and credibility. Therefore they were seen as strong engagement drivers

 

Customer insights – opportunities

  • Reduced confidence of the end-customers on the case organization’s channel
  • Frustration amongst the channel ecosystem due to inability to push through teething issues
  • Customers using the solution in a sub-optimal manner thereby creating points of dissatisfaction
  • Customers are willing to pay for a professional solution that will ensure optimum design, installation, operation & maintenance of products & sites on a continuous on-going basis.
  • This also has the potential to become a revenue opportunity for the channel, should the channel be scaled up

 

Recommendations

  • Service offerings recommended in the areas of :
  • End-to-end customized solutions delivered in a “b-o-t” mode
  • Linking product performance to production efficiency
  • Working with customers to arrive at specific optimum solutions, in view of product application & environment
  • Training & workshops
  • Channel management process changes towards end – to- end solutioning assistance
  • Training & empowering the channel for first level support

 

Results

  • 7% increase in services revenue from month4 onwards
  • 5% increase in business from existing customers month 6 onwards
  • 5% increase in channel revenue from new customers month 6 onwards
  • Higher channel engagement and activity